A Collection Due Process Hearing, also known as a CDP hearing, is often used as a way to resolve your tax issue. You may request a CDP hearing within 30 days after the IRS issues a Notice of Intent to Levy. You may also request a CDP hearing after the IRS issues a Notice of Federal Tax Lien.
CDP hearings serve as a way to stop a levy while you are attempting to workout your tax issue with the IRS. You can request collection alternatives such as an Offer in Compromise or Installment Agreement. You can request other relief such as penalty abatement or innocent spouse relief. In some cases, you can dispute the amount of the tax assessed.
The key to using Collection Due Process hearings as a tool is to act quickly. You only have 30 days to request a CDP hearing. After that, you are not entitled to a CDP hearing. There may be other relief available though.
What if I miss the deadline to request a Collection Due Process hearing?
If you request a hearing after the 30 day deadline expires, but before one year has passed, you can request an “Equivalent Hearing”. It is called an Equivalent Hearing because it is “equivalent” to a CDP hearing with a few key differences.
Sometimes, Equivalent Hearings are preferred to CDP hearings. Only an experienced tax professional can assess whether a CDP hearing or Equivalent Hearing is better for you given the particular facts of your case. However, in order for you to have a choice you must act quickly!
What do I do if I receive a Notice of Intent to Levy?
Don’t waste any time. Call an experienced tax professional immediately. The more time you have, the more options you have.
In some cases, we may request a CDP hearing. In others, we may request an Equivalent Hearing. In some, bankruptcy is a more appropriate option. The only way for us to determine the best choice for you is to speak with you. If you received a Notice of Intent to Levy, call us today.
Patrick “PJ” Best is one of the areas foremost Tax Resolution Attorneys. He has been representing taxpayers who owe the IRS, but simply cannot afford to pay. Attorney Best is known for exceptional customer service and his “24 Hour Returned Phone Call Guarantee” which has resulted in being named as a “Top 10 Best Bankruptcy Lawyers in Pennsylvania for Customer Service” by the American Institute of Bankruptcy Attorneys.