Table of Contents
- 1 What Is IRS Form 12153?
- 2 When Would a Taxpayer File Form 12153?
- 3 What If You Miss the 30-Day Deadline?
- 4 What Happens After I File Form 12153?
- 5 Can A Business File Form 12153?
- 6 Are There Any Disadvantages to Filing Form 12153?
- 7 Should You File IRS Form 12153?
- 8 Speak With a Columbus, Ohio Tax Attorney About IRS Form 12153
When the IRS is preparing to levy your wages, bank accounts, or assets, one of the strongest protections you have is IRS Form 12153, also known as the Request for a Collection Due Process (CDP) Hearing. Filing this form can pause IRS collections and give you time to work out a tax resolution.
Below is a clear breakdown of how Form 12153 works, when to file it, and how a Columbus tax attorney can help you use it strategically.
What Is IRS Form 12153?
IRS Form 12153 allows a taxpayer to request either:
- A Collection Due Process (CDP) Hearing, or
- An Equivalent Hearing
These hearings take place with the IRS Office of Appeals. Filing the form stops most IRS collection actions while the case is being reviewed. Taxpayers typically use Form 12153 to negotiate options such as:
- Installment agreements
- Offers in compromise
- Relief from wrongful enforcement
- Alternative collection methods
This hearing is often the best opportunity to present your case before the IRS can move forward with enforcement.
When Would a Taxpayer File Form 12153?
The most common reason to file Form 12153 is after receiving a Final Notice of Intent to Levy (Letter 1058 or LT11). Once this notice is issued:
- You have 30 days to request a CDP hearing.
- Filing within this window places an automatic stay on IRS enforcement.
- This means no levies, no garnishments, and no asset seizures until your hearing is resolved.
Taxpayers also file Form 12153 when:
- An installment agreement has defaulted
- The IRS issues a Notice of Federal Tax Lien
A business owes payroll tax (941 tax) and needs time to resolve compliance
Filing promptly gives you control and prevents the IRS from taking funds before you can propose a resolution.
What If You Miss the 30-Day Deadline?
You can still file Form 12153 after the 30-day period, but it will be treated as an Equivalent Hearing request. Key differences:
| CDP Hearing | Equivalent Hearing |
| Stops IRS collections | Does not guarantee a pause |
| Allows Tax Court appeal | No Tax Court rights |
| Tolling of collection statute applies | Does not toll statute |
| Strongest protection | Still helpful but more limited |
Although enforcement may pause informally during an Equivalent Hearing, it is not guaranteed.
What Happens After I File Form 12153?
Once filed, the IRS Office of Appeals will:
- Acknowledge receipt of your hearing request
- Assign an appeals officer to your case
- Schedule an initial hearing date
- Request supporting documents such as:
- IRS Form 433-A or 433-B (financials)
- Income verification
- Expenses
- Proposed resolution (installment agreement, offer in compromise, etc.)
Your appeals officer will review your financial situation, compliance history, and any hardship factors before making a determination.
Can A Business File Form 12153?
Yes. Businesses—especially those with payroll tax issues (Form 941)—can request a CDP or Equivalent Hearing.
However, if a business is not current on federal tax deposits, the IRS may deny the automatic stay on enforcement. Ensuring compliance before filing is essential.
Are There Any Disadvantages to Filing Form 12153?
The main drawback is that a CDP hearing tolls the IRS collection statute, meaning:
- The 10-year collection period stops while the hearing is open.
If the IRS still has many years left to collect, tolling may not matter. But if you are nearing the end of the 10-year period, you should carefully consider whether a CDP hearing is the right strategic move.
An Equivalent Hearing does not toll the statute.
Should You File IRS Form 12153?
Filing Form 12153 can provide powerful protection, but whether it is right for you depends on:
- How much time is left on the IRS collection statute
- Whether you received the levy notice recently
- Your current financial situation
- Whether you are trying to avoid a levy while preparing resolution documents
- Your compliance status with current tax filings and payments
Because these hearings can significantly affect your tax rights, it is wise to consult a tax attorney before filing.
Speak With a Columbus, Ohio Tax Attorney About IRS Form 12153
If you or your business has received a Final Notice of Intent to Levy or believe a CDP hearing may benefit your situation, The McGuire Law Firm can help.
Contact The McGuire Law Firm today for a confidential consultation. We can help you determine whether filing Form 12153 is your best option and guide you through the process from start to finish.