You just opened your mail. The IRS sent a notice saying they plan to seize your bank account or put a lien on your property. Your stomach drops. But here’s something most New York taxpayers don’t know: you have legal rights that can stop this process in its tracks.
A Collection Due Process (CDP) hearing gives you the chance to challenge the IRS before they take your assets. It’s not just paperwork. It’s a legal right that Congress created to protect taxpayers like you.
What Is a Collection Due Process Hearing?
Think of a CDP hearing as your day in court with the IRS, except it happens before they can seize your property.
The Internal Revenue Service Restructuring and Reform Act of 1998 created CDP hearings under Internal Revenue Code Sections 6320 and 6330. These laws require the IRS to give you notice and a chance to be heard before taking aggressive collection actions.
During this hearing, you can:
- Challenge the tax debt itself. If you never had a chance to dispute the amount you owe, this is your opportunity.
- Propose payment alternatives. IRS mechanisms such as installment agreements, offers in compromise, or hardship status might be options.
- Question the IRS procedures. If they didn’t follow the rules, you can call them out.
- Present your financial situation. Show why the levy or lien would create undue hardship.
The hearing is run by an Appeals Officer who has no prior involvement in your case. You get a fresh set of eyes looking at your situation.
When Can You Request a CDP Hearing?
The IRS must send you one of these notices before taking your property:
- Notice of Federal Tax Lien Filing (Letter 3172). This tells you the IRS filed a public claim against your property.
- Final Notice of Intent to Levy (Letter 1058 or LT11). This is your last warning before the IRS can seize your assets.
You have exactly 30 days from the date on the notice to request a CDP hearing, not from when you received it but from the date printed on the notice itself. Miss that deadline, and your options shrink fast.
The Numbers Tell the Story
The IRS isn’t playing around with collections. According to the IRS Data Book for Fiscal Year 2024, the agency collected $77.6 billion through its collection function in 2024, a 13.6% increase from the prior year. More than 16 billion dollars came from installment agreements alone. That’s money the IRS collected from taxpayers who worked out payment plans instead of facing levies.
The message is clear: the IRS has the resources and the willingness to pursue collection. But they also must follow the rules. And those rules include giving you a CDP hearing.
How to Request Your CDP Hearing
Here’s the step-by-step process:
Step 1: Get Form 12153
Download Form 12153, Request for a Collection Due Process or Equivalent Hearing from the IRS website. You can also call 800-829-3676 to request a copy.
Step 2: Fill Out the Form Completely
The form asks for basic information:
- Your name, address, and Social Security number or employer identification number
- The type of tax you owe and the tax periods
- Whether you’re appealing a lien, a levy, or both
- The reason you’re requesting the hearing.
That last part is critical. Don’t just check a box. Explain your situation in detail. The IRS Office of Appeals needs to understand why you disagree with the collection action.
Step 3: Gather Your Documentation
If you’re proposing a payment plan, include Form 433-A (for wage earners) or Form 433-B (for businesses). These are Collection Information Statements that show your financial situation.
Attach any supporting documents:
- Bank statements showing your available funds
- Proof of income and expenses
- Documentation of financial hardship
- Evidence that supports your challenge to the tax liability.
The more complete your submission, the faster Appeals can review your case.
Step 4: Mail It to the Right Address
Send your completed Form 12153 to the address shown on your notice. This is crucial. The IRS has different offices handling different cases. Sending it to the wrong place can delay your hearing or cause you to miss the deadline.
Use certified mail with return receipt requested. You need proof that you mailed it within the 30-day window. Keep copies of everything you send.
Step 5: Wait for the IRS Response
The IRS will acknowledge receipt of your request. Then they’ll assign your case to an Appeals Officer.
Here’s the good news: filing your CDP request usually stops collection actions while your case is pending. According to IRC Section 6330(e), the IRS generally cannot levy your property while your CDP hearing is pending.
The collection statute also pauses. The IRS normally has 10 years to collect tax debt. That clock stops while your CDP hearing is underway.
What Happens During the Hearing
Your CDP hearing can take place in person at an IRS office, over the phone, or through written correspondence. Phone conferences are most common. The Appeals Officer will schedule a time to discuss your case.
During the hearing, you can:
- Explain why the collection action is inappropriate
- Present your financial information
- Propose alternatives like installment agreements or offers in compromise
- Challenge the underlying tax liability if you haven’t had a prior opportunity.
The Appeals Officer must verify that the IRS followed proper procedures. They’ll also consider whether the collection action balances the need to collect taxes efficiently with your concern that the action be no more intrusive than necessary.
Possible Outcomes
After your hearing, the Appeals Officer will issue a Notice of Determination. This document explains their decision.
- They might agree with you. The lien could be withdrawn. The levy could be stopped. You might get approved for a payment plan.
- They might side with the IRS. If so, you have 30 days to petition the US Tax Court to review the determination.
This is a critical right. Unlike an Equivalent Hearing (which we’ll discuss next), a timely CDP hearing gives you access to Tax Court review.
What If You Miss the 30-Day Deadline?
Life happens. You moved and didn’t get the notice right away. You were traveling for work. You didn’t understand the importance of the deadline.
You still have options, but they’re not as strong.
You can request an Equivalent Hearing for up to one year after the CDP notice date. An Equivalent Hearing works much like a CDP hearing. You meet with an Appeals Officer. You can propose payment alternatives. You can challenge the collection action.
But there are two big differences:
- The IRS can still levy your property during an Equivalent Hearing. The automatic suspension doesn’t apply.
- You cannot appeal to Tax Court. The Appeals Officer’s decision is final.
In most instances, these limitations make timely CDP requests far more valuable than Equivalent Hearings.
New York Considerations
New York taxpayers face collection pressure from both the IRS and New York State.
If you owe New York State taxes, the state has its own collection process. The New York State Department of Taxation and Finance can file tax warrants that function like liens.
But here’s what many people don’t realize: federal and state tax debts are separate. A CDP hearing with the IRS only addresses federal tax issues. If you have both federal and state tax problems, you need to handle them separately.
That said, resolving your federal tax issues can give you breathing room to address state tax matters. And if you’re dealing with both, an experienced tax attorney can help you develop a coordinated strategy.
Why Professional Help Matters
CDP hearings sound straightforward on paper. File a form. Attend a hearing. Done. But the reality is more complex.
The IRS Independent Office of Appeals handles these cases every day. The Appeals Officers know the tax code. They know what documentation they need. They know what arguments work and what don’t.
You probably don’t handle CDP hearings every day. And that puts you at a disadvantage.
An experienced tax lawyer can:
- Identify all available options. There might be collection alternatives you don’t know about.
- Prepare a strong case. Knowing what documentation to submit and how to present your argument matters.
- Negotiate effectively. Appeals Officers respect attorneys who know the tax code and can make compelling arguments.
- Handle communications. You don’t have to stress about saying the wrong thing. Your attorney speaks for you.
- Appeal if necessary. If the Appeals Officer rules against you, your attorney can file a Tax Court petition and continue fighting.
Attorney John D’Amato has built his practice on helping New York taxpayers resolve complex IRS issues. With 30 years of experience handling bankruptcy cases and IRS solutions, John understands how federal tax collection works and how to protect his clients’ rights.
His clients consistently praise his thorough approach and clear communication. One client wrote, “John was very happy to assist me on resolving a past issue and was able to have it resolved that day! I was very grateful for all he did to work quickly and professionally to have the case closed. He followed up with me a few weeks later to advise that the issue was cancelled and file was closed, much appreciative to him for all he did to help me out.”
Another client noted, “John and his support staff were excellent. John always took the time to answer my questions right away, either by phone or email. Super efficient and friendly team. I’d recommend his firm to everyone and anyone needing legal advice and representation.”
When you’re facing IRS collection actions, you need someone who knows the system and will fight for your rights.
Common Mistakes to Avoid
- Missing the 30-day deadline. Mark your calendar as soon as you receive the notice. Set multiple reminders. This deadline is not negotiable.
- Sending the form to the wrong address. Always use the address shown on your notice. Don’t send it to your local IRS office or a general IRS address.
- Not providing enough detail. Explain your situation thoroughly. The Appeals Officer can’t help if they don’t understand your circumstances.
- Ignoring the financial forms. If you’re proposing a payment plan, you must complete Form 433-A or 433-B. Appeals can’t evaluate your proposal without this information.
- Going it alone when you need help. Some cases are simple. Others involve complex tax issues, large amounts of debt, or difficult financial situations. Know when to get professional help.
Act Now to Get Your CDP Hearing: Call John D’Amato
If you received a Final Notice of Intent to Levy or a Notice of Federal Tax Lien, you need to act immediately. Count the days since the notice date. If you’re still within the 30-day window, you need to file Form 12153 right away. If you’re past 30 days but within one year, you can still request an Equivalent Hearing.
If you’re not sure what to do, call John D’Amato, PLLC at (716) 703-9099. John and his team have helped many New York taxpayers protect their assets and resolve their IRS problems.
As one client from Alden put it, “John and Margaret were very thorough by exploring all my options and going through everything with me. John’s fees were very reasonable. The location of the office is easy to find. John and Margaret are both great people, and friendly and understanding. They were both very helpful in explaining what I needed to do and when they needed it.”
Don’t wait until the IRS empties your bank account or puts a lien on your home. Your CDP hearing rights expire quickly. Use them before it’s too late.
Frequently Asked Questions
Can the IRS levy my property without warning?
No. Except in rare circumstances like jeopardy levies, the IRS must send you a Final Notice of Intent to Levy at least 30 days before taking your property. This notice includes information about your CDP hearing rights.
What if I already had a CDP hearing for a different tax year?
You can request a CDP hearing for each tax period. If you owe taxes for multiple years, you might have multiple CDP hearings.
Can I represent myself at a CDP hearing?
Yes. You have the right to represent yourself, but you can also authorize an attorney, CPA, or enrolled agent to represent you. Many taxpayers find that professional representation leads to better outcomes.
How long does the CDP process take?
It varies. Simple cases might resolve in a few months. Complex cases can take longer, especially if you appeal to the Tax Court. The good news is that collection actions generally pause while your case is pending.
What happens if I lose my CDP hearing?
You have 30 days to petition the US Tax Court for review. The Tax Court can look at whether the Appeals Officer abused their discretion. If you don’t petition the Tax Court, the IRS can proceed with collection.
Does requesting a CDP hearing hurt my chances of resolving the debt?
No. In fact, it often helps. The CDP hearing gives you a structured process to propose payment alternatives and present your case to someone who hasn’t been involved before. Many taxpayers successfully resolve their tax debts through the CDP process.
A Collection Due Process Hearing Is Your Legal Right. Call John D’Amato Today.
A Collection Due Process hearing is your legal right. It can stop IRS collection actions and give you time to work out a solution. But only if you act within the 30-day deadline.
Don’t let confusion or fear cause you to miss this opportunity. And don’t face the IRS alone if you don’t have to.
Attorney John D’Amato helps New York taxpayers protect their rights and resolve their tax problems. With a proven track record and a commitment to personalized service, John and his team give you the experienced representation you need during this stressful time.Call (716) 703-9099 today to schedule a FREE consultation. Your financial future might depend on the action you take right now.