AccessibilitySkip to Top NavigationSkip to Main ContentHome  |  Contact IRS  |  About IRS  |  Site Map  |  Español  |  Help  

Part 5. Collecting Process

Chapter 1. General Collecting Procedures

Section 9. Collection Appeal Rights

5.1.9  Collection Appeal Rights

5.1.9.1  (03-22-2001)
Overview of Collection Appeal Rights

  1. This section discusses the rights taxpayers have to appeal collection actions, proposed or taken, and the related appeal procedures.

  2. The specific appeal rights being addressed include

    the Collection Due Process (CDP) appeal rights

    • IRC 6320 gives the taxpayer the right to appeal the filing of a Notice of Federal Tax Lien.

    • IRC 6330 gives the taxpayer the right to appeal before the proposed levy action.

    and appeal rights under the Collection Appeals Program (CAP)

    • IRC 7122 gives the taxpayer the right to appeal the Service’s rejection of installment agreement requests. The taxpayer also has the right to appeal proposed terminations of installment agreements and actual terminations of installment agreements.

    • IRC 7123 gives the taxpayer appeal rights that the Service provides through CAP.

  3. Taxpayers have additional appeal rights, including those related to assessment of the trust fund recovery penalty (IRM 5.7.6.1.3, Appealing the Proposed Assessment), offers in compromise (IRM 5.8.7.6.5, Rejection Appealed), abatement of penalty assessments due to reasonable cause (IRM 20.1, Penalty Handbook), and jeopardy levies (IRM 5.11.3.6, Appeals the Jeopardy Levy).

5.1.9.2  (03-24-2005)
Informing Taxpayers of Their Appeal Rights

  1. Taxpayers need to be informed of their right to appeal collection actions. The following publications and forms explaining appeal rights and provisions should be readily available in Collection offices to provide to taxpayers:

    1. Publication 594, What You Should Know About the IRS Collection Process, addresses general appeal provisions.

    2. Publication 1660, Collection Appeal Rights, provides detailed information regarding the collection appeal rights and procedures under Collection Due Process and the Collection Appeals Program.

    3. Form 9423, Collection Appeal Request.

    4. Form 12153, Request for a Collection Due Process Hearing.

  2. Revenue officers need to clearly explain the appeal provisions to taxpayers and thoroughly answer questions taxpayers may have regarding their right to appeal.

  3. Statutory provisions under IRC § 6320 and IRC § 6330 require the Service to provide taxpayers with written notification of their appeal rights. Refer to IRM 5.1.9.3, Collection Due Process.

  4. Collection personnel are required to advise taxpayers of their right to appeal under CAP when an installment agreement is rejected or about to be terminated. Collection personnel should also advise taxpayers of their right to appeal under CAP prior to and after the filing of a federal tax lien or levy, when the taxpayer disagrees with the lien or levy action. Refer to IRM 5.1.9.4, Collection Appeals Program.

  5. Collection personnel need to provide taxpayers with Publication 1660 prior to seizure action. See IRM 5.10.1.5(2).

5.1.9.3  (03-22-2001)
Collection Due Process

  1. The Restructuring and Reform Act (RRA) of 1998 established the Collection Due Process hearing rights under IRC 6320 and IRC 6330. These provisions apply to levy and lien actions taken after January 18, 1999.

5.1.9.3.1  (06-01-2007)
Notice of Collection Due Process Hearing Rights

  1. The Collection Due Process hearing provisions give taxpayers an opportunity for an independent review to ensure that the levy or lien action by Collection is warranted and appropriate. In the Collection Field function, attempted contact with the taxpayer and alternative methods for resolving the case, such as installment agreements and offer in compromise, should be considered before levy or lien action is initiated.

  2. IRC 6320 gives taxpayers the right to request a hearing during the 30-day period that begins on the day after the five-business-day period after the filing of a Notice of Federal Tax Lien. Refer to IRM 5.12, Federal Tax Liens and IRM 5.1.9.3.2.1, Timeliness of CDP Hearing Request.

    1. Letter 3172(DO), Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320, will be given in person, left at the dwelling or usual place of business, or sent by certified or registered mail to the last known address not more than 5 business days after the day of the filing of the Notice of Federal Tax Lien.

    2. This notice is required only once for the taxable period and unpaid tax which is the subject of the lien filing. A second notice is required if a new lien is filed for an additional assessment of tax made for the tax period after the original Letter 3172 was issued.

    3. For a joint income tax liability, each spouse will individually be sent to his or her last known address a Letter 3172 explaining the right to a hearing. Two separately addressed notices are sent even if both spouses are at the same address.

  3. IRC 6330 gives taxpayers the right to request a hearing during the 30-day period that begins the day after the date of the Notice of Intent to Levy and Notice of Your Right to a Hearing. Refer to IRM 5.11, Notice of Levy.

    1. This Notice of Intent to Levy and Notice of Your Right to a Hearing will be given in person, left at the dwelling or usual place of business, or sent by certified or registered mail, return receipt requested, to the taxpayer’s last known address not less than 30 days before the day of the first levy.

    2. Information regarding how the notice was sent, delivered, or left at the dwelling or business must be documented in the case history. In addition, request input of appropriate TC 971 action codes.

    3. This notice is required only once for the taxable period and unpaid tax which is the subject of the pre-levy notice. A second notice is required if levy action is planned to collect additional taxes that were assessed for the taxable period after the original notice was issued.

    4. For a joint income tax liability, when a Letter 1058, Notice of Intent to Levy and Notice of Your Right to a Hearing, is issued in the field, each spouse will individually be given or sent, to his and her last known address, the letter explaining the right to a hearing. Two separately addressed notices are sent even if both spouses are at the same address.

    Note:

    USPS certified or registered mail service is not available in certain U.S. Possessions and Territories, including the Federated States of Micronesia, Republic of the Marshall Islands, Republic of Palau, Palmyra Atoll, Johnson Atoll, and Midway Islands. A private delivery service (UPS, FedEx, DHL, etc.) may be used to provide delivery in person or to the taxpayer's residence or usual place of business, in accordance with section 6330(a)(2)(A) and (B). You must retain a copy of the signed receipt or the signature of the private delivery service employee affirming that he/she left the notice at the taxpayer's residence or usual place of business. Where use of a private delivery service may be prohibitively expensive in relation to the amount of tax expected to be collected, please contact Counsel for guidance.

  4. There are two exceptions to the pre-levy notice requirements of IRC 6330. They are:

    1. when the collection of tax is in jeopardy under section 6331(a), or

    2. a levy is served on a state to collect a Federal tax liability from a state tax refund.


    In both of the above situations, the taxpayer will be given the opportunity for a CDP hearing within a reasonable period of time after the levy. Refer to IRM 5.1.9.3.3, Jeopardy Levy and SITLP.

  5. There is no right to a hearing when child support obligations are being collected. See IRM 5.11.1.2.2.10, Issuing Notice of Intent to Levy for Child Support Obligations.

5.1.9.3.2  (01-01-2007)
Request for CDP Hearing Rights

  1. If contact is made with the taxpayer after the issuance of the CDP notice, attempt to resolve the account or issue with the taxpayer. In some situations it may be useful to have the group manager intercede in discussions with the taxpayer in an effort to resolve the case. Advise taxpayers entitled to request an appeal under the CDP provisions of the requirements and time frames for filing an appeal. Be sure to let taxpayers know that discussions with Collection do not suspend the running of (or otherwise extend) the 30-day period during which taxpayers may request a CDP hearing. When applicable, consider Fast Track Mediation as an option for resolving the issue with the taxpayer. See IRM 5.1.9.3.8, CDP and Equivalent Hearing Fast Track Mediation (FTM).

  2. If the taxpayer wants to file a request for a hearing,

    1. it must be in writing;

    2. it must be filed on or before the date that is 30 days after the date of the Notice of Intent to Levy and Notice of Your Right to a Hearing or on or before 30 days after the five-business-day period following the filing of the Notice of Federal Tax Lien; and

    3. if the hearing request is filed late, the taxpayer may be entitled to an equivalent hearing but only if specifically requested. Refer to IRM 5.1.9.3.2.1, Timeliness of the CDP Hearing Request, and IRM 5.1.9.3.2.3, Equivalent Hearing and Timeliness of Equivalent Hearing Requests.

  3. Taxpayers generally use Form 12153, Request for Collection Due Process Hearing, to request the hearing. This form is included with the CDP notice. If this form is not used, the taxpayer may submit a written request for a CDP hearing signed by the taxpayer or authorized taxpayer representative.

  4. The written request for a hearing must be dated and must include the following information:

    1. The taxpayer's name, address, daytime telephone number (if any), and taxpayer identification number (SSN, ITIN, or EIN).

    2. The type of tax involved.

    3. The tax period(s) at issue.

    4. A statement that the taxpayer requests a hearing concerning the proposed levy or in the case of post levy CDP requests, the actual levy action, or the filing of the Notice of Federal Tax Lien.

    5. The reason(s) why the taxpayer disagrees with the action.

    6. The signature of the taxpayer or the taxpayer's authorized representative.

  5. If the tax liability involves a partnership, a request for a CDP hearing under IRC 6330 would cover all partners in the partnership. Under IRC 6320, the partnership and partners listed on the NFTL receive the CDP hearing notice. A partner with authority to represent the partnership could request a hearing for the partnership or a partner listed on the NFTL could request a CDP hearing as an individual partner.

  6. The CDP hearing request includes all applicable periods listed on the CDP notice, unless the taxpayer explicitly indicates otherwise. For example, the taxpayer explicitly states that he or she is not disputing the collection action for a specified tax period.

    • If the taxpayer includes periods that are not subject to the CDP hearing, the taxpayer may be requesting an equivalent hearing for the other periods (see IRM 5.1.9.3.2.3, Equivalent Hearing and Timeliness of Equivalent Hearing Request). If the taxpayer is not entitled to a CDP hearing or an equivalent hearing, i.e., has not been issued a CDP hearing notice or previously received a CDP hearing, notify the taxpayer and advise the taxpayer of his or her available rights such as those available through CAP or retained jurisdiction.

  7. If the taxpayer received a CDP notice for both lien filing and proposed levy action, the taxpayer may appeal both notices. Appeals should consolidate the requests for the CDP hearing.

  8. The taxpayer must send or deliver the CDP hearing request to the IRS office and address as directed on the CDP notice. If the address of that office does not appear on the CDP notice, the taxpayer should obtain the address of the office to which the written request must be sent or delivered by calling the toll-free number on the notice or by calling toll-free, 1-800-829-1040 and providing the taxpayer's identification number (SSN, ITIN, or EIN). If the taxpayer wishes to fax the CDP hearing requests, the taxpayer may request the fax number of the appropriate office from one of these toll-free numbers.

    Note:

    If the CDP notice does not include the address of the office that sent the notice, and the taxpayer sends the hearing request to the wrong IRS office, timeliness should be determined by the postmark date of the request.

5.1.9.3.2.1  (06-01-2007)
Timeliness of the CDP Hearing Request

  1. Collection makes the initial determination about the timeliness of a request for hearing from a CDP levy notice or CDP lien notice, but Appeals must make the final timeliness determination. See (9) below.

  2. For a CDP levy hearing request to be timely, the taxpayer must submit a written request for a CDP levy hearing within the 30-day period commencing the day after the date of the CDP levy notice. If the CDP levy notice is not available for purposes of identifying the date of the CDP levy notice, a TC 971 ac 069 on the tax module identifies the date the CDP levy notice was issued. If the request for the hearing is made after this 30-day period, the taxpayer may be entitled to an equivalent hearing. See IRM 5.1.9.3.2.3, Equivalent Hearing and Timeliness of Equivalent Hearing Requests.

  3. The time frame for filing a timely CDP lien hearing request is different than for a CDP levy request. For a CDP lien hearing request to be timely, a taxpayer must submit a written request for a CDP hearing within the 30-day period that commences the day after the end of the five-business-day period following the filing of the NFTL. Any request filed during the five-business-day period (before the beginning of the 30-day period) will be deemed to be filed on the first day of the 30-day period. The Letter 3172, provides the date for the taxpayer to file a timely CDP lien hearing request. If a request is filed within that time period it is considered timely. If the request for the hearing is late, the taxpayer may be entitled to request an equivalent hearing. See IRM 5.1.9.3.2.3, Equivalent Hearing and Timeliness of Equivalent Hearing Request.

    Note:

    The date on the Letter 3172 considers the NFTL filed three business days after the NFTL is mailed to the recording office.

  4. A timely filed request for a hearing suspends the statutory period of limitations on collection, criminal prosecutions, and other suits for the period that is being appealed. The suspension begins on the receipt date of the CDP hearing request.

  5. The request for a CDP hearing should be stamped with the received date.

  6. Use the date received in the office listed on the CDP hearing notice to determine the timeliness of the CDP hearing request. If the received date is after the time frame for filing a timely CDP hearing request but the request was postmarked timely, use the postmark date as the receipt date. Timely mailing constitutes timely filing if the taxpayer's request for a CDP hearing is correctly addressed to the IRS office listed in the CDP hearing notice. If the address of that office does not appear on the CDP notice, the taxpayer should obtain the address to which the written request should be sent or hand delivered by calling toll-free, 1-800-829-1040, and providing the taxpayer's identification number (SSN, EIN, or ITIN). When the postmark is illegible or the envelope is missing, ascertain a reasonable period for mail delivery from the origin of the request to the receiving office and deduct that amount of time from the received date. If the 30th day is a Saturday, Sunday, or federal holiday, and the postmark is for the next business day, it is timely. Keep the envelope in which the hearing request was mailed and associate it with the hearing request.

  7. A taxpayer's request for a CDP hearing can be submitted via facsimile (FAX) to the office listed on the notice. The transmission date will be the received date. The transmittal sheet should be retained along with the CDP hearing request.

  8. A request for CDP hearing is untimely if:

    1. The request was not received within the required time period.

    2. The timely but nonprocessable request is made processable by the taxpayer after the reasonable time period given for perfection. For a description of the perfection process and processability criteria, see IRM 5.1.9.3.2.2, Perfection of Timely CDP Hearing Requests.

  9. When a CDP hearing request is untimely, the request must be sent to Appeals for an ultimate determination of timeliness.

    1. Document in the ICS case history, the reason Collection determined the request to be untimely received. For example: The hearing request was received within the 30-day period in section 6330 but was unprocessable. The taxpayer failed to sign the request and was given 15 days to provide a signed copy of the request. The taxpayer provided the signature 25 days after the perfection request and as a result the request was untimely. The taxpayer stated he did not want an equivalent hearing.

    2. Fax the hearing request, Form 12153, the envelope it was mailed in, a copy of CDP notice (L 3172 or L 1058), and any written correspondence to and from the taxpayer, including any documents submitted by the taxpayer, to Appeals for a separate timeliness determination. Appeals has access to the ICS history. Use a Form 3210, Document Transmittal, clearly noting Request for Separate Timeliness Determination. Appeals will expedite timeliness determinations.

    3. Fax requests for Separate Timeliness Determinations to Appeals based on the location of the taxpayer. For taxpayers residing in AL, CT, DC, DE, FL, GA, IN, KY, LA, MA, MD, ME, MI, MO, MS, NH, NC, NJ, NY, OH, PA, PR, RI, SC, TN, USVI, VA, VT, WV, and International, fax requests to APS, Hartford, CT via fax (860) 290-4007. For taxpayers residing in AK, AR, AZ, CA, CO, HI, IA, ID, IL, KS, MN, MT, NE, ND, NM, NV, OK, OR, SD, TX, UT, WA, WI, WY, fax requests to APS, St. Paul, MN via fax (651) 726-7451.

  10. Appeals will either:

    • Agree with Collection's timeliness determination.

    • Disagree with Collection's timeliness determination.

    • Partially agree with Collection's timeliness determination because there are multiple modules. If Appeals partially disagrees, Appeals will identify which periods should be returned to Appeals.

    If Appeals agrees that the request was untimely, inform the taxpayer orally or in writing that the request is untimely and that the taxpayer may elect to have the CDP hearing request treated as an equivalent hearing request. See IRM 5.1.9.3.2.3, Equivalent Hearing and Timeliness of Equivalent Hearing Requests. If Appeals disagrees with the timeliness determination, treat the request for CDP hearing as timely and process the CDP under normal procedures.

5.1.9.3.2.2  (01-01-2007)
Perfection of Timely CDP Hearing Requests

  1. In some cases, Forms 12153 or other written hearing requests are timely filed, but are incomplete and must be perfected. The hearing request may be missing required information. If possible, missing information should be obtained from IRS systems, such as IDRS. If this information is not available through a search of IRS systems, then the taxpayer will need to furnish it. If an authorized signature is missing, the taxpayer will need to provide it. The taxpayer must provide the following:

    1. Signature of taxpayer(s) or authorized representative. Both spouse’s signatures are required on joint tax periods if both spouses are requesting a hearing.

    2. SSN, ITIN, or EIN. This information should be listed on the Form 12153 but may also be found on the CDP notice, if attached. If there is no SSN, ITIN or EIN on the Form 12153 or other written hearing request and the CDP notice is not attached, then attempt to identify the SSN, ITIN or EIN on IRS systems using the taxpayer’s name and address if available.

    3. Taxpayer's name. If the taxpayer supplies the SSN, ITIN, or EIN, the name can be obtained from IRS systems. The request should not be treated as an imperfect request if this information can be obtained from IRS systems.

    4. Type of tax/tax period(s). This information should be listed on the Form 12153, but may also be found on the CDP notice, if attached. If taxpayer supplies the SSN, ITIN, or EIN, the tax/tax period(s) can be obtained from IRS systems. The request should not be treated as an imperfect request if this information can be obtained from IRS systems.

    5. Statement that the taxpayer requests a CDP hearing. If the taxpayer did not submit Form 12153, but it is evident that the taxpayer is requesting a CDP hearing, then the taxpayer has met this requirement. For example, if the taxpayer provides the taxpayer's name, address, SSN, and the tax and period at issue, and the IRS's records show that a CDP notice was recently sent to the taxpayer, then the taxpayer has met this requirement. Similarly, if the taxpayer attached the CDP notice, the taxpayer has met this requirement. Note: A request is not imperfect if it is missing a daytime phone number, address, or reasons for disagreement with the Notice of Federal Tax Lien or levy. If the taxpayer submits an SSN, ITIN or EIN, then the taxpayer’s last known address should be available on IDRS. Failure to provide a reason for disagreement, however, will prevent the taxpayer from receiving a face-to-face conference. A taxpayer must be provided a reasonable opportunity to provide reasons for disagreement and to become eligible for a face-to-face conference.

  2. If a request for a CDP hearing is filed timely, but needs to be perfected, make a reasonable attempt to contact the taxpayer and allow a reasonable time (generally 15 calendar days) for the taxpayer to perfect the request. If the taxpayer forgot to sign the request or failed to furnish required information, the taxpayer may perfect the request by supplying the missing signature or by providing the missing information. If the request is signed on the taxpayer’s behalf by the taxpayer’s spouse or other unauthorized representative, the taxpayer may perfect the request by affirming in writing that the request was submitted on the taxpayer’s behalf.

  3. If the timely but incomplete CDP hearing request is processable when received, then it is timely even if the taxpayer perfects the request late or only perfects the request partially or does not respond. A CDP hearing request is processable unless the request is:

    1. Not signed.

    2. Signed but the signer is not authorized to sign on behalf of the taxpayer (example: an unenrolled return preparer or spouse).

    3. Signed but the signer does not have proper authorization (no Power of Attorney on file).

    4. Does not have a valid SSN, ITIN or EIN and one could not be identified. See 1(b) above.

  4. If the timely but incomplete CDP hearing request is not processable when received, and, within the reasonable time period specified, the taxpayer perfects the request or partially perfects the request so the request is processable, then the CDP hearing request is timely filed. Advise the taxpayer that if the processable request is received after the time frame, the taxpayer would be entitled to an equivalent hearing if specifically requested.

    Note:

    If the taxpayer demonstrates that the late response was due to extenuating circumstances, such as being in the hospital or out of the country during that period, then treat the request as timely.

  5. If after the perfection period the taxpayer perfects the request enough to make it processable, the request for hearing is untimely. The taxpayer must be offered an opportunity to request an equivalent hearing as described below in IRM 5.1.9.3.2.3, Equivalent Hearing and Timeliness of Equivalent Hearing Requests.

  6. If after the perfection process the request is not processable, the taxpayer is not entitled to a CDP hearing. Notify the taxpayer either orally or in writing that the taxpayer's request for a CDP hearing cannot be processed. Explain that the taxpayer may be eligible for an equivalent hearing and enclose a Form 12153, Request for CDP or Equivalent Hearing.

5.1.9.3.2.3  (06-01-2007)
Equivalent Hearing and Timeliness of Equivalent Hearing Requests

  1. If the request for the CDP hearing is made after expiration of the IRC 6320 or IRC 6330 notice period, the taxpayer may request an administrative hearing with Appeals, which is referred to as an " equivalent hearing." The equivalent hearing will be held by Appeals and generally will follow Appeals procedures for a CDP hearing. Appeals will not, however, issue a Notice of Determination. Under such circumstances, Appeals will issue a Decision Letter and the taxpayer is not entitled to judicial review.

  2. The taxpayer must submit a written request for an equivalent hearing within the one-year period commencing the day after the date of the CDP Notice issued under IRC 6330 (CDP levy notice). This period is slightly different from the period for submitting a written request for an equivalent hearing with respect to a CDP Notice issued under section 6320. For a CDP Notice issued under section 6320, a taxpayer must submit a written request for an equivalent hearing within the one-year period commencing the day after the end of the five-business-day period following the filing of the NFTL. If the request is received after the one-year period, notify the taxpayer of his or her available rights such as CAP or requesting assistance from TAS.

  3. The taxpayer can request an equivalent hearing either by

    1. checking the Equivalent Hearing box on Form 12153, Request for CDP or Equivalent Hearing, or other written request or

    2. confirming that he/she wants an untimely CDP hearing request to be treated as an equivalent hearing when notified by Collection of an untimely CDP hearing request.

  4. Late CDP hearing requests are not automatically treated as equivalent hearing requests. However, treat a late filed CDP hearing request as a request for equivalent hearing if the taxpayer has checked the Equivalent Hearing box on Form 12153, Request for CDP or Equivalent Hearing, requesting an equivalent hearing or otherwise indicated in writing that the taxpayer wishes an equivalent hearing if the CDP hearing request is untimely. For late filed CDP hearing requests where the taxpayer has not checked the box on Form 12153 or otherwise indicated in writing that the request is to be treated as a request for an equivalent hearing, notify the taxpayer either orally or in writing of the late filed request and advise the taxpayer of the right to request an equivalent hearing (unless the CDP hearing request is postmarked after the expiration of the one-year period for requesting an equivalent hearing). If the taxpayer indicates either orally or in writing that the CDP request should be treated as an equivalent hearing request, process the CDP hearing request as a request for an equivalent hearing. There is no need for the taxpayer to file a separate request for an equivalent hearing.

    1. Explain to the taxpayer that a CDP hearing and an equivalent hearing are substantially the same, but there is no judicial review of an equivalent hearing.

    2. Explain that the taxpayer is entitled to challenge in the hearing Collection’s determination that the request is untimely.

  5. If the taxpayer has checked the Equivalent Hearing box on Form 12153 or submitted any other written request for the equivalent hearing, the request for the equivalent hearing should be stamped with a received date. Use the date received in the office listed on the CDP hearing notice to determine the timeliness of the equivalent hearing request. If the received date is after the one-year time frame for filing a timely equivalent hearing request but the request was postmarked timely, use the postmark date as the receipt date. Timely mailing constitutes timely filing if the taxpayer's request for an equivalent hearing is correctly addressed to the IRS office listed in the CDP hearing notice. If the address of that office does not appear on the CDP notice, the taxpayer should obtain the address to which the written request should be sent or hand delivered by calling toll-free, 1-800-829-1040, and providing the taxpayer's identification number (SSN, EIN, or ITIN). When the postmark is illegible or the envelope is missing, ascertain a reasonable period for mail delivery from the origin of the request to the receiving office and deduct that amount of time from the received date. If the day on which the one-year period expires is a Saturday, Sunday, or federal holiday, and the postmark is for the next business day, it is timely. Keep the envelope in which the hearing request was mailed and associate it with the hearing request.

  6. If a taxpayer has elected to treat the CDP hearing request as an equivalent hearing request, use the postmark date of the CDP hearing request as the date the equivalent hearing request was submitted. If the taxpayer submitted a CDP hearing request within the one year period and the taxpayer responded within the specified time period that the taxpayer wanted an equivalent hearing but the taxpayer's response was later than the one year period, the request for equivalent hearing is timely.

  7. A taxpayer's request for an equivalent hearing can be submitted via facsimile (Fax). The transmission date will be the received date. The transmittal sheet should be retained along with the CDP hearing request.

  8. Following an equivalent hearing, the appeals officer sends the taxpayer a letter explaining the results of the hearing. In an equivalent hearing, the decision by Appeals is final. The taxpayer cannot appeal the decision to Tax Court. The exceptions to this are spousal defenses under IRC section 6015 and denial of interest abatement under IRC Section 6404. The taxpayer has 90 days to file a petition for review of a denial of innocent spouse relief and 180 days to file a petition for review of denial of interest abatement. There is also the potential for litigation over whether or not the CDP request is timely.

  9. The statute of limitations on collection is not suspended during the equivalent hearing.

  10. An equivalent hearing request is untimely:

    1. when an equivalent hearing request is not received within the one-year period or

    2. when a timely but nonprocessable equivalent hearing is made processable after the reasonable time period for perfection specified by Collection and after the one-year period for requesting an equivalent hearing. For a description of the perfection process and processability criteria, see IRM 5.1.9.3.2.4, Perfection of Timely Equivalent Hearing Requests.

  11. When an equivalent hearing request is untimely, the request must be sent to Appeals for an ultimate determination of timeliness.

    1. Document the ICS history with the reason the request was determined to be untimely received.

    2. Fax the hearing request, Form 12153, the envelope it was mailed in, a copy of CDP notice (L 3172 or L 1058), and any written correspondence to and from the taxpayer, including any documents submitted by the taxpayer, to Appeals for a separate timeliness determination. Appeals has access to the ICS history. Use a Form 3210, Document Transmittal, clearly noting Request for Separate Timeliness Determination. Appeals will expedite timeliness determinations.

    3. Fax requests for Separate Timeliness Determinations to Appeals based on the location of the taxpayer. For taxpayers residing in AL, CT, DC, DE, FL, GA, IN, KY, LA, MA, MD, ME, MI, MO, MS, NH, NC, NJ, NY, OH, PA, PR, RI, SC, TN, USVI, VA, VT, WV, and International, fax requests to APS, Hartford, CT via fax (860) 290-4007. For taxpayers residing in AK, AR, AZ, CA, CO, HI, IA, ID, IL, KS, MN, MT, NE, ND, NM, NV, OK, OR, SD, TX, UT, WA, WI, WY, fax requests to APS, St. Paul, MN via fax (651) 726-7451.

  12. Appeals will either:

    • Agree with Collection's timeliness determination.

    • Disagree with Collection's timeliness determination.

    • Partially agree with Collection's timeliness determination because there are multiple modules. If Appeals partially disagrees, Appeals will identify which periods should be returned to Appeals.

    If Appeals agrees that the request was filed late, inform the taxpayer orally or in writing that the request is untimely and that the request for hearing is denied. The taxpayer may request a CAP hearing or request assistance from TAS. If Appeals disagrees with the timeliness determination, treat the request for equivalent hearing as timely and process the equivalent hearing under normal procedures.

5.1.9.3.2.4  (01-01-2007)
Perfection of Timely Equivalent Hearing Requests

  1. In some cases, Forms 12153 or other written request for equivalent hearing are timely filed, but are incomplete. The hearing request may be missing required information. If possible, missing information should be obtained from IRS systems, such as IDRS. If this information is not available through a search of IRS systems, then the taxpayer will need to furnish it. If an authorized signature is missing, the taxpayer will need to provide it. The taxpayer must provide the following:

    1. Signature of taxpayer(s) or authorized representative. Both spouse’s signatures are required on joint tax periods if both spouses are requesting a hearing.

    2. SSN, ITIN, or EIN. This information should be listed on the Form 12153 but may also be found on the CDP notice, if attached. If there is no SSN, ITIN or EIN on the Form 12153 or other written hearing request and the CDP notice is not attached, then attempt to identify the SSN, ITIN or EIN on IRS systems using the taxpayer’s name and address if available.

    3. Taxpayer's name. If the taxpayer supplies the SSN, ITIN, or EIN, the name can be obtained from IRS systems. The request should not be treated as an imperfect request if this information can be obtained from IRS systems.

    4. Type of tax/tax period(s). This information should be listed on the Form 12153, but may also be found on the CDP notice, if attached. If taxpayer supplies the SSN, ITIN, or EIN, the tax/tax period(s) can be obtained from IRS systems. The request should not be treated as an imperfect request if this information can be obtained from IRS systems.

    5. Statement that the taxpayer requests an equivalent hearing. If the taxpayer did not submit Form 12153, but it is evident that the taxpayer is requesting a hearing, then the taxpayer has met this requirement. For example, if the taxpayer provides the taxpayer's name, address, SSN, and the tax and period at issue, and the IRS's records show that a CDP notice was recently sent to the taxpayer, then the taxpayer has met this requirement. Similarly, if the taxpayer attached the CDP notice, the taxpayer has met this requirement.

    6. Reasons for disagreement with the filing of the Notice of Federal Tax Lien or the levy.

      Note:

      A request is not imperfect if the request does not have a daytime telephone number or address. If the taxpayer submits an SSN, ITIN or EIN, then the taxpayer’s last known address should be available on IDRS.

  2. If a request for equivalent hearing is filed timely, but needs to be perfected, make a reasonable attempt to contact the taxpayer and allow a reasonable time (generally 15 calendar days) for the taxpayer to perfect the request. If taxpayer forgot to sign the request or failed to furnish required information, the taxpayer may perfect the request by supplying the missing signature or by providing the missing information. If the request is signed on the taxpayer’s behalf by the taxpayer’s spouse or other unauthorized representative, the taxpayer may perfect the request by affirming in writing that the request was submitted on the taxpayer’s behalf.

  3. If the timely but incomplete equivalent hearing request is processable when received, then it is timely even if the taxpayer perfects the request late or only perfects the request partially or does not respond. An equivalent hearing request is processable unless the request is:

    1. Not signed.

    2. Signed but the signer is not authorized to sign on behalf of the taxpayer (example: an unenrolled return preparer or spouse).

    3. Signed but the signer does not have proper authorization (no Power of Attorney on file).

    4. Does not have a valid SSN, ITIN or EIN and one could not be identified. See 1(b) above.

  4. If the timely but incomplete equivalent hearing request is not processable when received and, within the reasonable time period specified, the taxpayer perfects the request or partially perfects the request so the request is processable, then the hearing request is timely filed. Such request is timely even if the perfection occurs after the end of the one-year period.

  5. If the taxpayer makes the request processable after the reasonable perfection period but before the one-year period for requesting an equivalent hearing, process the request. If the taxpayer makes the request processable after the reasonable perfection period and after the one-year period, the taxpayer is not entitled to an equivalent hearing. Explain to the taxpayer the one-year period has expired and that the taxpayer can pursue resolution with collection, request a CAP appeal or request assistance from TAS.

    Note:

    If the taxpayer demonstrates that the late response after the expiration of the one year period was due to extenuating circumstances, such as being in the hospital or out of the country during that period, then process the request.

  6. If after the perfection process the timely but incomplete request is not processable, the taxpayer is not entitled to an equivalent hearing.

    • Notify the taxpayer either orally or in writing that the taxpayer's request for an equivalent hearing cannot be processed.

    • Explain that the taxpayer is eligible to make another request for an equivalent hearing on or before the expiration of the one-year period applicable to section 6320 or 6330.

    • If the one year period for requesting an equivalent hearing has expired, explain that the taxpayer can pursue resolution with Collection, request a CAP appeal, or request assistance from TAS.

    • Document the ICS case history with the reason why the request could not be processed. Include a copy of the hearing request and any written correspondence to and from the taxpayer in the case file.

  7. If a late filed CDP hearing request is treated as a request for an equivalent hearing and is incomplete, follow the perfection procedures above.

5.1.9.3.2.5  (01-01-2007)
CDP and Equivalent Hearing Requests in Response to CDP Notices Issued in Error

  1. If the taxpayer requests a hearing in response to a notice issued in error, explain the error to the taxpayer.

  2. If a NFTL was filed in error and needs to be withdrawn, explain that since the lien is withdrawn the CDP and equivalent hearing right associated with the lien is rescinded. The taxpayer will receive CDP hearing rights if the NFTL is subsequently filed.

    Note:

    If a lien is withdrawn in response to a CDP lien determination made by the Office of Appeals, the taxpayer will not get additional CDP hearing rights if the lien is filed later.

  3. If an initial CDP levy notice was issued in error, i.e., when levy action was prohibited, explain that the CDP levy notice will be rescinded and the hearing right associated with the CDP levy notice is rescinded. See IRM 5.11.1.2.2.7. Examples could include instances where a CDP levy notice is issued when the taxpayer has a pending offer-in-compromise, pending installment agreement, pending innocent spouse request, is in bankruptcy, or is entitled to relief under the Servicemember’s Civil Relief Act (SCRA) of 2003, Section 570. Other situations may also apply. If these situations are identified after a CDP hearing request has been sent to Appeals, Appeals will return the case to the originator for necessary action, i.e., rescinding the notice.

  4. In situations where a valid CDP levy notice was previously issued, and a subsequent CDP levy notice is issued in error, the notice issued in error does not afford the taxpayer an additional opportunity to request a hearing. Timeliness of any hearing request is based on the date of the original CDP levy notice. The original CDP notice is not valid if it was not sent to the taxpayer’s last known address.

5.1.9.3.3  (01-01-2007)
Processing CDP and Equivalent Hearing Requests

  1. Upon receipt of a written request for a CDP hearing, determine if the request is timely. See IRM 5.1.9.3.2.1, Timeliness of the CDP Hearing Request. If the request is timely, next determine if the request needs to be perfected. If it needs to be perfected, follow the procedures described in IRM 5.1.9.3.2.2, Perfection of Timely CDP Hearing Requests.

  2. If the timely request does not need to be perfected, or the request is timely because it is perfected within the reasonable period specified for perfection, then suspend the CSED. See IRM 5.1.9.3.6, Suspension of Collection Statute of Limitations.

  3. If the request for CDP hearing is untimely, determine if the request qualifies as a timely request for an equivalent hearing. See IRM 5.1.9.3.2.3, Equivalent Hearing and Timeliness of Equivalent Hearing Requests and IRM 5.1.9.3.2.4, Perfection of Timely Equivalent Hearing.

  4. In the following situations, hearing requests need to be sent to Appeals solely for a timeliness determination:

    1. CDP hearing requests that were untimely received and the taxpayer did not request an equivalent hearing.

    2. CDP hearing requests that were timely received yet unprocessable, and after the reasonable time period for perfection specified by Collection, the taxpayer perfects the request or partially perfects the request so the request is processable and the taxpayer does not want an equivalent hearing. (If the taxpayer wants an equivalent hearing, process as equivalent hearing request.)

    3. Equivalent hearing requests that were untimely received.

    4. Equivalent hearing requests that were timely yet unprocessable and, after the reasonable time period for perfection specified by Collection and after the one-year period for requesting an equivalent hearing, the taxpayer perfects the request or partially perfects the request so the request is processable.

    See IRM 5.1.9.3.2.1, Timeliness of the CDP Hearing Request and IRM 5.1.9.3.2.3, Equivalent Hearing and Timeliness of Equivalent Hearing Requests. If Appeals determines that the request was timely, process the hearing request.

  5. If the taxpayer was not issued a CDP notice, contact the taxpayer and advise the taxpayer of his or her available rights such as those available through CAP. If it is determined that the CDP notice the taxpayer received was issued in error, refer to IRM 5.1.9.3.2.5, CDP and Equivalent Hearing Requests in Response to CDP Notices Issued in Error.

  6. Once it is determined that the CDP or equivalent hearing is processable, request update of the CDP Tracking System (CDPTS) to document receipt of the hearing request.

    • Use Form 12153-A, Referral of Request for CDP Hearing and Request for CDPTS Input. See IRM 5.1.9.3.3.3, Form 12153-A, Referral Request for CDP Hearing and Request for CDPTS Input. Note: In certain instances, Stage 1, Hearing Request Received, and Stage 3, Transferred to Appeals, can be requested at the same time. This can occur when a case is promptly transferred to Appeals.

    • When the module is added to the CDPTS, a TC 971 is systemically generated with action code 275 if it is a CDP request The action code 275 is used to exclude module(s) from selection by automated levy programs.

  7. In the situations listed below, the case file for the CDP or equivalent hearing should be promptly forwarded to Appeals (i.e., within 5 business days of the case being ready for Appeals).

    • Collection alternatives have already been explored and discussions are at an impasse when the taxpayer requests a CDP hearing; or

    • The taxpayer raises frivolous or constitutional issues; or

    • The taxpayer is not seeking to resolve the issue but using the CDP process as a method for delay, i.e., pyramiding in-business trust fund taxpayer; or

    • The taxpayer does not want to work with Collection after making the request for a CDP hearing.

      Note:

      A group manager conference does not apply in these situations. The group manager's signature on Forrm 12153-A, signifies manager concurrence.

  8. In other situations, the taxpayer may be willing to work with Collection to resolve the issue even after the taxpayer has requested a hearing with Appeals. Refer to Treas. Reg. 301.6330–1(c)(2), Q&A C-9 and Treas. Reg. 301.6320-1(c)(2), Q&A C-9. If the taxpayer presents new information or requests collection alternatives not previously considered and if the taxpayer is willing, the revenue officer should work with the taxpayer to see if the issue can be resolved. If the case can be resolved prior to Appeals consideration, it expedites the process for the taxpayer.

    • When resolution is reached prior to commencement of the CDP hearing, the taxpayer can voluntarily withdraw the request for a CDP hearing. Refer to IRM 5.1.9.3.3.1, Processing Withdrawal of Request for Collection Due Process Hearing. Advise the taxpayer that withdrawal of the request will prevent the taxpayer from obtaining judicial review of the collection action/resolution with respect to the tax and periods included in the hearing request.

    • If resolution is reached and the taxpayer does not withdraw his or her request, forward the case file to Appeals.

    • Whenever discussions with the taxpayer reach an impasse, forward the request promptly to Appeals, generally within 5 business days of the case being ready to be sent to Appeals.

    • If after 45 days from receipt of the CDP hearing request, resolution of the taxpayer's issues seems likely, secure group manager concurrence to continue working with the taxpayer towards resolution up to 90 days after receipt of the taxpayer's CDP hearing request. The taxpayer's willingness to continue to pursue an agreement beyond a 45–day period should be documented in the file. If resolution is not expected or cannot be reached within the next 45 days, forward the case file to Appeals. If the discussions are at an impasse because an appropriate collection resolution, e.g., installment agreement, could not be reached, the sole appeal rights will be through the CDP or equivalent hearing already requested by the taxpayer.

    • In these situations where the taxpayer is seeking resolution, it is appropriate to offer the taxpayer the opportunity to discuss the issue with the group manager in an effort to reach resolution. The group manager should try to hold the conference with the taxpayer within 5 business days. If the taxpayer does not wish to have the conference with the group manager but wants to go straight to Appeals, we cannot require the conference with the group manager as a prerequisite to the CDP hearing.

    • The group manager should document the case history with the results of any taxpayer conference. If no conference is held, the group manager's signature on Forrm 12153-A signifies that the manager has determined that a conference with the taxpayer is not needed.

  9. If the taxpayer raises doubt as to liability issues (e.g., SFR or audit assessments) or requests relief from liability (e.g., innocent spouse or interest abatements) or claims that a Frivolous Filer Penalty should not have been assessed, request the administrative file (tax return) and forward it with the CDP hearing request. Document in the ICS history attempts to secure the file, in the event they are unsuccessful. This does not apply when the doubt as to liability is based on frivolous or constitutional arguments

  10. In situations where the taxpayer contests the TFRP liability, Appeals will first review the ICS history to determine if Letter 1153 was hand-delivered or mailed. If the Letter 1153 was hand delivered, the ICS history entry would serve as a contemporaneous recording and prima-facie evidence and, therefore, the taxpayer will not be able to challenge the liability at the CDP hearing. If the Letter 1153 was mailed, Appeals will request a copy of the Letter 1153 and certified mailing listing from Technical Service/Advisory. Appeals must verify that the taxpayer received the Letter 1153.

  11. CDP notices issued by automated levy programs (Federal Payment Levy Program, State Income Tax Levy Program, and Alaska Permanent Fund Program) direct the taxpayer to file the CDP request with the ACS campus CDP units. If a request is received on a case assigned to a revenue officer, the CDP units will document the ICS system notifying the RO of the request. If the RO has had contact with the TP, the RO should contact the CDP unit and they will forward the request to the RO for processing to Appeals, otherwise the CDP unit will process the request. The same procedure applies if ACS issues a CDP levy notice or CDP lien notice and the case is assigned to a revenue officer by the time the CDP request has been received.

5.1.9.3.3.1  (06-01-2007)
Processing Withdrawal of Request for CDP Hearing

  1. A taxpayer that reaches a satisfactory resolution with Collection after filing a request for a CDP hearing can withdraw the request for a CDP hearing. When resolution is reached, explain to the taxpayer the option to withdraw the request for a CDP hearing and the effect of doing so, i.e., the taxpayer will lose CDP rights with respect to the CDP tax periods and proposed collection action, including the right to judicial review. The decision to withdraw belongs to the taxpayer. A taxpayer can also withdraw the request for hearing with Appeals if the case is resolved prior to the commencement of the CDP hearing with Appeals but after the case has been forwarded to Appeals.

  2. Form 12256, Withdrawal of Request for Collection Due Process Hearing, under section 6320 and/or 6330 is available to taxpayers to use for withdrawing