Collection Due Process Cases

You Have the Right to Due Process!

The Collection Due Process (CDP) procedure provides taxpayers with the ability to appeal lien and/or levy actions that have been filed against them or against properties that they have an interest in.  If you are facing a lien or levy from the IRS against any property, this can be an excellent way to delay any action while you complete the appeal.

Ideally, this strategy can be used to show that the IRS was wrong for filing the lien or levy against the property. In other cases, it can also be used to help protect property that you have a vested interest in, but which the IRS has a lien or levy against related to someone else’s tax issues. Many people also use Collection Due Process procedures to help buy the time they need to come up with the money they owe so that the lien or levy is never executed.

Understanding the Hearing Procedures

An employee whom the IRS considers to be an impartial third party will be conducting the Collection Due Process hearing. This means that the appeals officers involved will have had no prior involvement in the case that caused the unpaid liability. The appeals officer will collect information and consider the following points:

  • The details of the CDP notice and the request for the hearing to see whether they are valid and sufficient.
  • All relevant information related to any unpaid taxes that are brought up by the taxpayer (or their attorney).
  • Defenses made by spouses that are raised at the hearing.
  • All challenges that are made by the taxpayer regarding whether or not the collection actions were appropriate.
  • Alternative offers made by the taxpayer for collections.
  • Weighing whether or not the need for efficient collection of the taxes owed outweighs the valid concern of the taxpayer that the collection action should be as minimally intrusive as possible.

When looked at in detail, Collection Due Process cases can seem very complicated and overwhelming. The fact is, these are often complex cases that involve a variety of different tax laws that must be properly regarded and applied. This is why having a qualified tax attorney is essential to getting the outcome you desire.  

If the IRS has notified you of a lien or levy against property you own or have an interest in, you may be able to utilize the Collection Due Process procedure to your benefit, so please consider contacting our offices to set up a consultation with an attorney right away. Time is typically of the essence with these types of cases so you do not want to delay any longer than is necessary.