Collection Due Process Hearing: Your Rights

When the IRS files a federal tax lien or proposes to levy your wages or bank account, they're required to send you a notice of your right to a Collection Due Process hearing. This isn't a formality — it's one of the most powerful rights you have as a taxpayer.

A CDP hearing gives you an independent review of the IRS's proposed collection action by an Appeals Officer. More importantly, requesting a CDP hearing stops collection activity in its tracks while the hearing is pending. No levies, no garnishments, no seizures — until the hearing is resolved.

The 30-Day Deadline

You have 30 days from the date of the CDP notice to request a hearing. This deadline is absolute. Miss it by one day and you lose the right to a CDP hearing — and more importantly, you lose the right to petition Tax Court if you disagree with the result. You can still request an "equivalent hearing" after 30 days, but it doesn't stop collection and doesn't preserve your Tax Court rights.

When you receive a Notice of Federal Tax Lien Filing (Letter 3172) or a Notice of Intent to Levy (Letter 1058 or LT11), mark the date. Count 30 days. Act before that deadline.

What You Can Raise

At a CDP hearing, you can challenge the underlying tax liability (if you haven't had a prior opportunity to dispute it), propose alternative collection methods like an installment agreement or Offer in Compromise, argue that the IRS failed to follow proper procedures, or demonstrate that the collection action is more intrusive than necessary.

This is your opportunity to get an independent person to look at the entire situation — not just the collection action, but whether the IRS is handling your case appropriately.

The Tax Court Backstop

If the CDP hearing doesn't go your way, you can petition the U.S. Tax Court for review within 30 days of the determination. This is the only path to judicial review of IRS collection actions without paying the tax first. It's a critical right — and you only preserve it by requesting the CDP hearing on time.

If you've received a CDP notice, contact me immediately. The 30-day clock is non-negotiable.

32 years. Over $100 million in IRS tax debt resolved. If you need more than information — if you need representation — I can help.