Collection Due Process Hearing: Your Right to Stop IRS Enforcement
A Collection Due Process hearing is one of the most powerful rights a taxpayer has. It stops IRS enforcement completely while your case is reviewed by an independent appeals officer — and it costs nothing to request.
What Is a Collection Due Process Hearing?
A CDP hearing is a formal review conducted by the IRS Office of Appeals, which is independent from the collection division. It is available to taxpayers who have received a Final Notice of Intent to Levy (LT11) or a Notice of Federal Tax Lien Filing. A timely CDP request generally suspends levy action during the hearing process, subject to the applicable notice, deadline, and account facts.
When You Can Request a CDP Hearing
You must file Form 12153 within 30 days of: (1) the date on the LT11 or Letter 1058 (Final Notice of Intent to Levy), or (2) the date the IRS files a Notice of Federal Tax Lien. Missing either 30-day window eliminates your right to a CDP hearing (though you may still request an Equivalent Hearing within 1 year).
What You Can Argue at a CDP Hearing
At a CDP hearing, you can: propose collection alternatives (installment agreement, OIC, CNC status), challenge whether the IRS followed proper collection procedures, raise innocent spouse relief claims, dispute the underlying tax liability if you did not have a prior opportunity to do so, and request a lien discharge, subordination, or withdrawal.
The CDP Hearing Process
After filing Form 12153, the IRS acknowledges receipt and suspends enforcement. A settlement officer from the Office of Appeals is assigned. The hearing is typically conducted by phone (sometimes in person for complex cases). You present your case and proposed resolution. The appeals officer issues a Notice of Determination that is appealable to Tax Court.
CDP Hearing vs. Equivalent Hearing
A timely CDP hearing stops enforcement and gives you Tax Court appeal rights. An Equivalent Hearing (filed after the 30-day window but within 1 year) does not stop enforcement and does not provide Tax Court rights — it is a less powerful version of the same process. Timeliness is critical.
Real-World Example
A freelance producer in Hollywood received an LT11 with 28 days remaining. She had previously ignored all prior notices. We immediately filed Form 12153, stopping a pending bank levy. During the CDP hearing, we submitted a detailed financial disclosure and proposed an OIC based on her low asset value and irregular income. The appeals officer accepted the proposal and submitted it for formal OIC processing.
CDP Hearing Help in Los Angeles
If you received an LT11 or tax lien notice, you have a narrow window to protect yourself. Calculus Tax, Inc. handles CDP hearings for taxpayers throughout Los Angeles, Burbank, and LA County. Call (213) 468-6170 or visit 1050 W. Alameda Ave., Burbank, CA 91506.
Frequently Asked Questions
Can I request a CDP hearing if I cannot afford an attorney?
Yes. You have the right to represent yourself at a CDP hearing. Low-income taxpayers may also qualify for free representation through a Low Income Taxpayer Clinic (LITC) — a program funded by the IRS to provide representation for qualified taxpayers.
Does a CDP hearing stop all collection permanently?
No. The CDP hearing suspends enforcement only during the hearing process. If no resolution is reached, enforcement can resume after the hearing concludes.
Can I dispute my tax liability at a CDP hearing?
You can dispute the underlying liability only if you did not previously receive a notice of deficiency or otherwise have an opportunity to dispute it. If you received a 90-day letter and did not respond, you generally cannot relitigate the liability at a CDP hearing.
What if I disagree with the CDP determination?
You can petition the U.S. Tax Court within 30 days of receiving the Notice of Determination. Tax Court review is generally limited to whether the appeals officer abused their discretion.
Does the CSED continue to run during a CDP hearing?
No. The CSED is suspended from the time you file Form 12153 until 30 days after the CDP determination is issued. This is important for taxpayers nearing their CSED expiration.
Can I withdraw a CDP request?
Yes, but withdrawing the request ends the enforcement suspension. Withdrawing to pursue an OIC or installment agreement through normal channels may be appropriate in some cases.
What can change the answer
Notice type, issue date, filing history, account status, deadlines, and current agency procedures can change the available next step. Bring the complete notice and account records to a qualified review.
Tax rules and collection procedures can change and depend on the account. Federal claims should be checked against current IRS guidance; California claims should be checked against the California Franchise Tax Board. See our editorial methodology for sourcing and update standards.
When professional help may make sense
Calculus Tax, Inc. can review notices, organize financial information, explain available paths, and communicate with the IRS or California agencies when representation is appropriate. The right next step depends on your facts, deadlines, filing history, and ability to pay.
We are based in Burbank and serve clients in Los Angeles and throughout Los Angeles County. See our local service-area pages for location-specific information.
Ready to Resolve Your Tax Problem?
Calculus Tax, Inc. helps individuals and businesses understand IRS debt, audits, notices, and collection options. We explain the process, review the available paths, and help coordinate next steps.