By Jon Call, EA. Enrolled Agent & NTPI Fellow • CLAW Tax Group
A Collection Due Process hearing (CDP) is a formal right granted to taxpayers when the IRS intends to take significant collection action against them. It gives you the opportunity to challenge that action before an independent IRS appeals officer before any seizure of property or income occurs.
CDP is one of the most valuable procedural rights in the tax code. It is also one of the most commonly misunderstood, and missed.
What Triggers CDP Rights
CDP rights are triggered by specific IRS notices. There are two:
Final Notice of Intent to Levy (Letter 1058 or LT11). Sent when the IRS intends to levy your wages, bank account, or other assets. This is the primary CDP trigger for most taxpayers with unpaid balances.
Notice of Federal Tax Lien Filing (Letter 3172). Sent when the IRS files a Notice of Federal Tax Lien. Filing a CDP request in response to a lien notice does not stop the lien, but it gives you the right to appeal it through the same CDP process.
When you receive either of these notices, the clock starts. You have 30 days from the date on the notice to request a CDP hearing.
The 30-Day Window
Thirty days is not a suggestion. If you miss it, you lose CDP rights for that notice, and with them, the right to take your case to Tax Court if you disagree with the appeals officer’s decision.
You may still be able to request an Equivalent Hearing after the 30-day window closes, but an equivalent hearing carries fewer protections. You cannot challenge the underlying liability in most cases, and you have no right to Tax Court review.
If you have received a Letter 1058 or LT11, the most important thing you can do is note the date on the notice and contact a representative immediately. The 30 days are calendar days, not business days.
What Happens at a CDP Hearing
A CDP hearing is not a courtroom proceeding. It is a conference with an IRS Settlement Officer in the Office of Appeals, a division that functions independently from the collection side of the IRS.
At the hearing, you can:
Propose a collection alternative. This is the most common use of CDP. You can propose an installment agreement, an Offer in Compromise, Currently Not Collectible status, or a request for release of levy based on hardship. The appeals officer evaluates whether the IRS’s proposed collection action is appropriate given the alternatives available.
Contest the underlying liability. Under certain circumstances, CDP is also the forum for challenging the amount the IRS says you owe. If you never had a prior opportunity to dispute the liability, for example, the balance came from a substitute for return the IRS filed on your behalf, or from an assessment you were never properly notified about, you can raise that dispute at the CDP hearing. This is a significant right. If you already received a notice of deficiency and had the opportunity to petition Tax Court at that time, you cannot re-litigate the liability at CDP. But when that prior opportunity did not exist, CDP may be your only remaining avenue to contest what you owe.
Request penalty abatement. The CDP hearing is also a forum for raising penalty relief, first-time abatement, reasonable cause, or other grounds for reducing or eliminating penalties that have accrued on the underlying liability. Penalty abatement does not eliminate the tax itself, but it can meaningfully reduce the total balance owed and change the resolution calculus.
Challenge IRS procedure. If the IRS failed to follow required procedures before issuing the notice, improper notice, failure to credit payments, misapplication of credits, that can be raised at the hearing.
Request lien withdrawal or subordination. In response to a lien notice, you can request that the IRS withdraw the lien, subordinate it to allow refinancing, or discharge it from specific property.
CDP and the CSED
Requesting a CDP hearing tolls the Collection Statute Expiration Date. The 10-year collection clock pauses from the date you request the hearing through the date the CDP process concludes, including any Tax Court review.
This is an important strategic consideration. If the CSED on a liability is close to expiring, requesting a CDP hearing, which can take months or longer to resolve, may extend the IRS’s collection window significantly. In those situations, the calculus of whether to request CDP versus letting the statute run needs to be evaluated carefully. Learn more about the CSED →
Tax Court After CDP
If you disagree with the appeals officer’s determination at a CDP hearing, you have the right to petition the United States Tax Court for review. The Tax Court will review whether the IRS abused its discretion in sustaining the collection action.
This right to Tax Court review is only available after a timely CDP hearing, not after an equivalent hearing. It is one of the key reasons that meeting the 30-day deadline matters.
Equivalent Hearing
If you miss the 30-day window, you can request an Equivalent Hearing within one year of the notice date. The process is similar, you meet with an appeals officer and can propose collection alternatives, but the protections are narrower:
- You cannot challenge the underlying tax liability in most cases
- You have no right to Tax Court review of the outcome
- The collection statute (CSED) is not suspended during an equivalent hearing.
An equivalent hearing is better than nothing, but it is a significant step down from a timely CDP hearing.
Strategic Use of CDP
CDP is not simply a delay tactic. Used correctly, it is a path to the IRS Office of Appeals, an environment that is generally more receptive to negotiated resolution than the collection division.
For taxpayers who have been unable to get traction through normal IRS channels, a CDP hearing can reset the process and put the case in front of a fresh set of eyes with authority to accept alternatives the collection division rejected.
For taxpayers with strong collection alternative cases, a well-documented OIC, a clear hardship situation, or a liability the IRS calculated incorrectly, CDP is often the best vehicle for reaching resolution.
The decision to request a CDP hearing should not be made without understanding the CSED implications, the strength of any collection alternative being proposed, and the likelihood of a favorable outcome at appeals. It is a right worth using strategically, not reflexively.
What We Do
When a client receives a Final Notice of Intent to Levy, the first question is whether to request a CDP hearing and on what basis. We pull transcripts immediately, assess the CSED dates, evaluate the collection alternatives available, and make a recommendation before the 30-day window closes.
If CDP is the right move, we prepare the request, represent the client at the appeals conference, and, if necessary, petition Tax Court.
Call or text: (651) 323-2255
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CLAW Tax Group is a tax resolution firm based in White Bear Lake, Minnesota, serving clients in all 50 states. Affiliated with Wildes At Law.
Common questions
What is an IRS Collection Due Process hearing and do I need an attorney?
A Collection Due Process (CDP) hearing is your statutory right to take a proposed IRS levy or a Notice of Federal Tax Lien filing to the IRS Independent Office of Appeals before (or, in some levy cases, after) forced collection. You request it on Form 12153 after a CDP notice such as Letter 1058, LT11, or Letter 3172. You do not automatically need a tax attorney for the Appeals conference. Attorneys, certified public accountants, and Enrolled Agents with unlimited representation rights can represent you before Appeals on Form 2848. Hire attorney counsel when you need attorney-only work, especially a U.S. Tax Court petition after a CDP determination. At CLAW Tax Group, Jon Call, EA and the Enrolled Agent team handle most CDP Appeals work. Matthew Wildes, JD, CPA joins when Tax Court or other attorney work is required. Related reading: LT11 / Letter 1058, tax attorney vs Enrolled Agent vs CPA, questions before hiring a tax attorney.
How do I request a Collection Due Process hearing?
Use Form 12153, Request for a Collection Due Process or Equivalent Hearing, or a signed written request with the same information. Send it to the hearing address on your CDP notice (not the payment address). Include a copy of the notice. Identify why you disagree and any collection alternative you want Appeals to consider. The request must be timely to preserve a CDP hearing and Tax Court review. Call the number on the notice or 1-800-829-1040 if you need the correct address or fax number. Details above stay in What Triggers CDP Rights and The 30-Day Window.
Can an Enrolled Agent or CPA represent me at a CDP hearing?
Yes. Publication 1660 says you may represent yourself at a CDP hearing, or you may be represented by an attorney, a certified public accountant, or a person enrolled to practice before the IRS. Enrolled Agents have unlimited practice rights before the IRS, including Appeals. If your representative will contact the IRS or appear without you and receive confidential tax information, file a properly completed Form 2848 naming that individual. A firm logo is not the representative. Unenrolled preparers and Annual Filing Season Program-only preparers generally cannot represent you before Appeals or Collection. CLAW CDP Appeals files usually sit with Jon Call, EA or Eddie Pahl, EA on Form 2848 unless the matter needs an attorney.
Do I need a tax attorney for a Collection Due Process hearing?
Not for the Appeals conference itself, if an Enrolled Agent or CPA with collection experience is on Form 2848. CDP is an administrative hearing with the IRS Independent Office of Appeals, not a courtroom trial. Bring in a tax attorney when true attorney-client privilege or litigation posture matters, or when you will petition the United States Tax Court after Appeals issues a CDP determination. That Tax Court step is available only after a timely CDP hearing, not after an Equivalent Hearing. To compare credentials, see tax attorney vs Enrolled Agent vs CPA. Questions to ask before you hire: questions before hiring a tax attorney.
Does requesting a CDP hearing stop an IRS levy?
A timely CDP request generally prohibits levy for the tax periods you appealed until Appeals’ determination is final, with limited statutory exceptions (for example certain jeopardy, state tax refund, federal contractor, or Disqualified Employment Tax levies). A timely CDP request also suspends the 10-year collection period (CSED) for those periods; the suspended time is added back when the process ends. An Equivalent Hearing does not prohibit levy and does not suspend the collection statute. If a levy is already running, see IRS tax levy for release grounds under IRC section 6343. Notice context: LT11 / Letter 1058.
What is the difference between a CDP hearing and an Equivalent Hearing?
A timely CDP hearing preserves Tax Court review, generally stops levy for the appealed periods, and suspends the collection statute while the CDP process runs. If you miss the CDP deadline, you may still request an Equivalent Hearing within the one-year window described on Form 12153 (levy: one year from the CDP levy notice date; lien: one year plus five business days from the NFTL filing date). An Equivalent Hearing looks similar at Appeals, but you cannot go to Tax Court if you disagree, levy is not prohibited by the request, and the collection statute is not suspended. The live Equivalent Hearing section above covers the practical tradeoff.
What issues can I raise at a CDP hearing?
Common issues include collection alternatives (installment agreement, Offer in Compromise, currently unable to pay / Currently Not Collectible), hardship, lien withdrawal / subordination / discharge, innocent spouse relief, payment credit disputes, and, in limited cases, the existence or amount of the tax if you did not receive a notice of deficiency and did not otherwise have a prior opportunity to dispute the liability. You generally may not re-raise an issue you already litigated or meaningfully contested in a prior hearing. Form 12153 walks through those reason checkboxes. If you need a broader resolution plan, see tax relief services.
What happens if I miss the 30-day CDP deadline?
You lose the right to a timely CDP hearing for that notice, including the right to petition Tax Court from that hearing. You may still request an Equivalent Hearing within the one-year period on Form 12153, with narrower protections. The 30 days are driven by the notice rules in Publication 1660 and IRC sections 6320 / 6330: for a levy CDP notice, postmark on or before the 30th day after the notice date; for a lien CDP notice, within 30 days after the five-business-day period following the NFTL filing (the letter shows the deadline). Calling Collection does not extend the written CDP deadline. If the notice is still in your hands, read the date today: LT11 / Letter 1058.
References: IRC § 6320 (lien CDP rights); IRC § 6330 (levy CDP rights); IRM 8.22.2 (Collection Due Process)