The CDP Right
When the IRS files a lien or proposes a levy, it must notify you and give you the right to a Collection Due Process hearing. This right exists under Internal Revenue Code Sections 6320 (liens) and 6330 (levies). The hearing gives you the opportunity to challenge the proposed collection action and propose alternatives.
The Triggering Letters
Your CDP rights are triggered by specific letters: Letter 1058, CP90, LT11 (for levies), and Letter 3172 (for liens). These letters explicitly state your right to request a hearing and provide the deadline. You have 30 days from the date of the letter to file Form 12153, Request for a Collection Due Process or Equivalent Hearing.
What Happens at the Hearing
A CDP hearing is conducted by an Appeals officer who has not been involved in your case. You can raise the following issues: whether the IRS followed proper procedures, whether you want to propose a collection alternative (installment agreement, offer in compromise, or currently not collectible status), and in some cases, whether the underlying tax liability is correct.
The hearing is typically conducted by phone or correspondence, not in person. You submit your position in writing, and the Appeals officer considers it along with the IRS's collection file.
Why the 30-Day Deadline Is Critical
If you file Form 12153 within 30 days, two things happen. First, the IRS must stop all collection activity while the hearing is pending. No levies, no seizures, no further collection. Second, if you disagree with the Appeals officer's decision, you have the right to petition the Tax Court for judicial review.
If you miss the 30-day deadline, you can still request an "equivalent hearing," but the IRS is not required to stop collection, and you have no right to petition Tax Court. The difference between timely and late filing is the difference between full legal protection and almost none.
Strategic Value
CDP hearings are not just defensive. They are an opportunity to negotiate. Many installment agreements and offers in compromise are set up through the CDP process. The key is filing the request timely and using the hearing to present a viable resolution.
The CDP hearing is the strongest right a taxpayer has in the collection process. It stops the IRS in its tracks and gives you access to Tax Court. File Form 12153 within 30 days. No exceptions.