The Collection Due Process appeal is your opportunity to seek an independent review of your tax assessment to be sure that the Internal Revenue Service has not made a mistake. The CDP appeal is used to appeal any enforcement actions, such as federal tax liens, property seizures, liens or wage garnishments that are made against you. You can also use it to appeal any tax assessment the IRS approaches you with.
How will you know that the IRS or government is taking action?
Any time the IRS or government is taking action against a taxpayer, it has to send them a Notice of Intent to Levy as well as a Right to a Hearing. The IRS may also send a Notice of a Federal Tax Lien Filing and your right to seek a hearing.
That being said, the IRS doesn’t always let tax payers know that they face a tax levy. They won’t let them know if the levy is a federal contractor levy, the taxpayer’s state refund is levied, the collection is in jeopardy or if the taxpayer meets the criteria for a disqualified employment tax levy.
How does the Collection Due Process appeal work?
A Collection Due Process appeal stops the government from taking action against you. You have 30 days to request a CDP hearing once you receive a notice from the IRS or government about the actions that are going to be taken, such as wage garnishment or a levy.
At your hearing, you can address many different issues that you may have. For example, if you felt that you paid all taxes that were owed or you cannot pay your taxes because of having no income or being terminally ill, then the judge at the hearing needs to know those facts about your case.
Do you need an attorney for a CDP appeal?
It’s a good idea to talk to your attorney before you decide to move forward with a CDP appeal, because you do have a right to representation. The tax process can be complex, so having someone with you who understands the law may be helpful to you.