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 levy or lien 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.