Getting a notice from the IRS about a levy or a federal tax lien can feel like the ground just shifted under your feet. For many people, the first question is simple: Can I stop this before the IRS starts taking money or locking down my property rights?
In many cases, the answer begins with Collection Due Process, often shortened to CDP. Congress created CDP rights in Internal Revenue Code sections 6320 and 6330, giving taxpayers a chance to ask for an independent review before certain IRS collection actions move forward. The IRS Independent Office of Appeals handles these hearings, and the Appeals officer is expected to verify that legal and administrative requirements were followed and to consider whether the collection action is no more intrusive than necessary. The IRS and the Taxpayer Advocate Service both describe CDP as an important part of taxpayer protections in the collection process (IRS Publication 1660; Taxpayer Advocate Service).
If you want a broader overview of how these hearing rights fit into liens, levies, and defense strategy, it may help to start with this plain-English overview of your IRS hearing rights and levy defenses.
In this post you’ll learn what a CDP hearing is, when it applies, what rights it gives you, what issues can be raised, and why timing matters so much.
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A Collection Due Process hearing is an administrative hearing with the IRS Independent Office of Appeals after the IRS sends a qualifying notice connected to either:
In general terms, this hearing gives a taxpayer an opportunity to ask an independent Appeals officer to review whether the IRS followed proper procedures and whether a less intrusive collection option may be appropriate. The governing statutes are 26 U.S.C. § 6320 for lien cases and 26 U.S.C. § 6330 for levy cases.
The IRS explains that a timely CDP request is generally made on Form 12153, and that the completed form is sent to the address shown on the notice offering the hearing right, not to the payment address (IRS Appeals; IRS Form 12153).
A lot of people hear “due process” and picture a formal courtroom. A CDP hearing usually looks different. It is often handled by correspondence, phone, or virtual conference rather than an in-person appearance. Even so, the consequences can be significant because a timely CDP request can affect when the IRS may continue collection and whether later Tax Court review is available (IRS CDP FAQs; U.S. Code § 6330).
CDP rights generally arise in two major situations.
When the IRS files a Notice of Federal Tax Lien, section 6320 requires written notice and an opportunity for a hearing. The IRS Internal Revenue Manual states that the taxpayer has the right to request a hearing during the 30-day period that begins after the post-filing notice period described in the statute and administrative rules (IRS Internal Revenue Manual 5.1.9; 26 U.S.C. § 6320).
Before many levy actions, the IRS sends a Final Notice, Notice of Intent to Levy and Notice of Your Right to a Hearing. IRS Appeals lists common levy notices such as CP90 and CP297 and explains that the taxpayer generally has 30 days from the date of the letter to request a CDP hearing by sending Form 12153 to the address shown on the notice (IRS Notices Offering an Appeal Opportunity; IRS Understanding Your CP297 Notice).
The IRS also notes that Letter 3172 is commonly used to notify a taxpayer of lien filing and CDP rights, and that other notices may trigger CDP rights in special levy situations, including some post-levy cases (IRS CDP FAQs; IRS Internal Revenue Manual 5.19.8).