Collection due process 
8/21/04
- Collection Options:
- extension up to 120 days to pay taxes in full
- currently not collectible (hardship) status – delay collection until financial condition improves
- installment payments
- bankruptcy
- expiration of Statute of limitations
- offer in compromise – settle for less than full payment
- See also: collection standards
- financial Information forms
- collection due process hearing right
- IRS Taxpayer Advocate Service (TAS)
- IRS Form 911 – Request for Taxpayer Advocate Service Assistance/ hardship relief
- Low Income Taxpayer Clinic (LITC)
- determining the correct tax
- audits / record keeping
- IRS correspondence audits
- notice of deficiency
- Tax Court
- what if you haven't filed returns
- trust fund recovery penalty
- what if you can't pay your taxes
- what if my spouse owes taxes but I don't
- can I really settle for pennies on the dollar ?
- innocent spouse relief
- injured spouse relief
- tax liens & levies
- subordination of lien
- can the IRS take my house
- abatement of penalties
- discharge of property from lien
- subordination of IRS lien, e.g., to refinancing
- bankruptcy doesn't remove a tax lien even after the tax is discharged
- trust fund recovery (responsible person) penalty
- private party (non-IRS) debt collectors
- tenancy by the entirety protections US v. Craft
- Missouri:
Taxpayers facing IRS enforced collection received new procedural rights after Congress' 1998 hearings. When the IRS proposes to take enforced collection, such as levy or lien, it must notify you and you have the right to appeal the decision.
You receive a "collection due process" (CDP) hearing before the IRS Appeals division. Appeals is a separate IRS section and an IRS employee who has not been involved with collection against you is to take a new look at whether the collection action was proper should proceed.
Appeals only reviews only:
- whether the IRS collection employee followed the proper procedure to lien or levy or
- if another collection alternative proposed by the taxpayer is appropriate.
Appeals and can not decide whether:
- the action is "fair" or
- the correct tax amount is being collected.
CDP is given priority over other matters sent to Appeals and normally only takes 3 to 10 days. The hearing may occur by telephone conference.