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All taxpayers have rights, and one of the most important rights a taxpayer who owes money to the IRS has is the right to a Collection Due Process Hearing. This article was prepared by a tax attorney at the McGuire Law Firm to provide information about the collection due process hearing process for taxpayers in Columbus, OH.
If you have received a Final Notice of Intent to Levy from the IRS, it is highly recommended that you speak with a tax attorney about your options.
When Can I Request a Collection Due Process Hearing?
A taxpayer has the right to request a Collection Due Process Hearing upon receipt of a Final Notice of Intent to Levy issued by the IRS. A hearing may also be requested when the IRS issues other notices, such as an intent to levy following the default of an installment agreement.
The collection due process hearing request must be filed within 30 days of the date of the IRS notice.
If a taxpayer does not request a Collection Due Process Hearing within the 30-day period, the taxpayer may still request an Equivalent Hearing before the IRS. An Equivalent Hearing follows many of the same procedures and provides many of the same rights as a Collection Due Process Hearing.
How Do I Request a Collection Due Process Hearing?
A Collection Due Process Hearing is requested by filing IRS Form 12153.
The form and any necessary supporting documents must be compiled and filed with the appropriate IRS service center or designated IRS office.
What Happens After I Request a Collection Due Process Hearing?
After the hearing request is filed, it generally takes three to five months for an IRS Appeals Officer to be assigned.
Once assigned, the appeals officer will:
- Send written notice confirming assignment
- Schedule an initial conference or hearing
- Request specific information depending on the issues raised in the hearing request
On the scheduled conference or hearing date, you may speak with the appeals officer by phone or request an in-person hearing.
During the hearing, you will discuss your issues and position with the appeals officer. For example, you may request that an installment agreement be established to resolve the tax debt that led to the Final Notice of Intent to Levy.
If required financial statements and supporting documents have not yet been submitted, the appeals officer will generally allow time to provide them and set a deadline.
If an Offer in Compromise is being submitted, the offer may be submitted through the appeals officer. The appeals officer will forward the offer to the IRS Offer in Compromise Unit and retain jurisdiction in the event the offer is rejected, allowing the matter to return to the appeals officer for further review.
How Does a Collection Due Process Hearing Conclude?
If a collection alternative is established through the hearing process, the appeals officer will issue a determination stating that an agreement has been reached and that the IRS’s intent to levy and enforce collection is not sustained.
If an agreement cannot be reached, the appeals officer will issue a Notice of Determination sustaining the IRS’s right to enforce collection through levy or seizure.
This determination does not mean the IRS will immediately levy bank accounts or seize assets, but it does mean the taxpayer is open to enforcement action.
Speak With a Columbus, Ohio Tax Attorney About Your IRS Rights
The right to request a Collection Due Process Hearing is a fundamental taxpayer right and should be used when appropriate. If you have questions about an IRS notice, levy threat, or hearing request, speaking with a tax attorney can help you understand and protect your rights.
You can speak with a Columbus tax attorney at The McGuire Law Firm, which assists taxpayers throughout Ohio with IRS collection matters. Contact us today for a free consultation.