Collection Due Process
A Collection Due Process appeal, also known as a CDP appeal, is a powerful tool which can be used to challenge proposed or existing collection action taken by the IRS. There are two types of Collection Due Process appeals. The first type involves a challenge to proposed levy action by the IRS. The second types involves a challenge to a Notice of Tax Lien which has already been filed. There are strict, short time deadlines for filing these types of administrative appeals. Both types of appeals are initially heard by the IRS Office of Appeals. If the matter cannot be resolved with the Office of Appeals, the matter can be taken to Tax Court and, if necessary to the U.S. Court of Appeals.
An administrative Collection Due Process appeal offers taxpayers a chance to raise any procedural errors which they believe that the IRS has made and provides an opportunity for taxpayers to come to an agreement with the IRS on how to resolve the unpaid tax liability. Under certain circumstances, a taxpayer may also challenge the amount of taxes or penalties owed to the IRS. If the taxpayer fails to request a CDP appeal within the strict, short deadline for requesting a CDP appeal, the taxpayer may be eligible for an “equivalent hearing.” The determination of the Office of Appeals in an equivalent hearing, however, may not be challenged in Tax Court.
The firm handles all types of CDP appeals, both administratively and, if necessary, in the Tax Court and the Courts of Appeals.