Before the IRS can levy your wages, seize your bank accounts, or file a federal tax lien, they must send you a final notice giving you 30 days to request a Collection Due Process (CDP) hearing. This hearing — before an independent IRS Appeals officer — is one of the most powerful tools available to taxpayers facing collection action.

What CDP Provides

A CDP hearing gives you the right to: challenge the underlying tax liability (if you have not had a prior opportunity), propose alternative collection methods (installment agreement, OIC, CNC status), raise spousal defense issues, and challenge the appropriateness of the IRS's intended collection action. Most importantly, filing a CDP request stops all collection action while the appeal is pending.

The 30-Day Window

You must request a CDP hearing within 30 days of the date on the Final Notice of Intent to Levy (Letter LT11 or Letter 1058) or the Notice of Federal Tax Lien Filing (Letter 3172). Missing this deadline does not eliminate your appeal right entirely — you can still request an Equivalent Hearing — but you lose the right to petition Tax Court if the appeal is unfavorable, and collection action is not automatically suspended.

What Happens at the Hearing

CDP hearings are typically conducted by telephone or correspondence. You present your proposed resolution to the Appeals officer, who evaluates whether it balances the government's interest in collecting the tax with your legitimate concerns. Appeals officers have broad authority to accept installment agreements, recommend OIC approval, or place accounts in CNC status. They are independent from the collection division that initiated the action.

Tax Court Review

If the CDP hearing produces an unfavorable determination, you can petition the U.S. Tax Court within 30 days. This provides judicial review of the IRS's collection decision — an additional layer of protection available only through the CDP process.

Strategic Use

CDP hearings are strategic tools, not just procedural rights. Attorney Darrin T. Mish has used CDP hearings to negotiate favorable resolutions, challenge improperly assessed liabilities, and stop aggressive collection action. Thirty-two years of IRS Appeals experience. Free consultation.