What Is a CDP Hearing
A Collection Due Process hearing is your legal right to challenge an IRS collection action before it happens. When the IRS sends you a Notice of Federal Tax Lien Filing or a Final Notice of Intent to Levy, you have 30 days to request a CDP hearing. This puts everything on hold while your case is reviewed by an independent appeals officer.
What You Can Raise
In a CDP hearing, you can challenge the underlying tax liability if you did not have a prior opportunity to do so. You can propose collection alternatives like an installment agreement, offer in compromise, or currently not collectible status. You can argue that the proposed collection action is more intrusive than necessary. You can raise spousal defenses and innocent spouse claims.
The 30-Day Deadline
You have exactly 30 days from the date of the notice to request a CDP hearing. This deadline is jurisdictional, meaning if you miss it, you lose the right to a CDP hearing and you lose the right to petition Tax Court if you disagree with the outcome. You can still request an equivalent hearing after 30 days, but you lose Tax Court access.
The Hearing Process
CDP hearings are informal. They are usually conducted by telephone. You or your attorney present your position to the appeals officer, who reviews the case independently. The appeals officer verifies that the IRS followed proper procedure, considers your proposed alternatives, and balances the government's interest in collecting the tax against the impact on you.
Tax Court Review
If you disagree with the CDP determination, you can petition the Tax Court for review within 30 days. This is the only way to get judicial review of IRS collection actions without first paying the tax. A tax attorney evaluates whether Tax Court review is worthwhile based on the strength of your legal position and the amount at stake.