Form 12153 2022 Printable, Fillable PDF – Internal Revenue Service Form 12153 IRS Collection Due Process Hearing Guide Irs Collection Due Process Hearing Guide for Collection Due Process HearingsA Collection Due Process (CDP) hearing may be requested by you if you get notice that the IRS wants to establish a tax lien or levy your assets against your property. Taxpayers may submit IRS Form 12153, which is available online. These hearings provide you with the opportunity to challenge the IRS’s collection operations. They have the capacity to prevent the lien or levy from taking effect.
What Is A Collection Due Process Hearing And How Does It Work?
Taxpayers may challenge IRS liens and levies via the Collection Due Process hearing process. It is a non-binding hearing that may take place either in person or over the phone. There will be no oaths taken, and there will be no transcripts taken.
The hearing will examine the legitimacy of the notification as well as any other relevant matters pertaining to the unpaid tax. During the CDP hearing, you may be able to argue that your spouse or ex-spouse was solely liable for the taxes owing, which is known as “innocent spouse relief.” You may also work out a payment plan with the customer or offer different collection methods.
Collection Due Process hearings are held with the goal of reaching an agreement between the IRS’s need to collect taxes and your complaints about the collection action. Following the hearing, the Internal Revenue Service issues a Notice of Determination. In particular, it specifies the following components:
- This is true regardless of whether or not the IRS delivered the lien or levy demand correctly—the IRS must deliver these letters in person. Alternatively, the IRS must send the notification to your last known address by registered mail and get a receipt confirming that you received it.
- Whether or not a tax lien will be placed on a property,
- Is it likely that a tax will be imposed?
- The specifics of any payment arrangements that may be agreed upon during the hearing will be disclosed.
- No matter if the IRS granted your request for innocent spouse relief or any other comparable argument, the outcome is still uncertain.
- It was unclear whether or not tax assistance was provided.
You have 30 days from the day you receive the Notice of Determination to file an appeal with the Tax Court or the United States District Court.
When Do You Need To File Form 12153, A Request For A Collection Due Process Hearing, With The Federal Trade Commission?
If a Notice of Federal Tax Lien or a Notice of Intent to Levy is received by a taxpayer, the taxpayer has the right to seek a Collection Due Process hearing. Typically, the IRS will issue one of the following letters to taxpayers:
- 1058 (Final Notice of Intent to Levy and Notice of Your Right to a Hearing)
- “Letter 11” refers to the eleventh letter of the English alphabet (Final Notice of Intent to Levy and Notice of Your Right to a Hearing).
- CP90 is an abbreviation for “Computer-Processing-90” (Final Notice of Intent to Levy).
- CP92 and CP242 are two of the most common CPs (Notice of Levy Upon Your State Tax Refund).
- Notice of Filing of a Federal Tax Lien and Your Right to a Hearing
In order to avoid “frivolous” hearing requests, the IRS does not permit taxpayers to file such requests. This includes refusing to pay taxes on the basis of religious or moral convictions.
What Are Some Reasons For Requesting A CDP Hearing?
- A payment plan or an offer in compromise are two options to consider when it comes to making a payment. In order to have these plans recognized, you must submit any back taxes that are owed.
- You’re suffering from a fatal disease, and your medical expenses are piling up.
- You are unable to pay because you are dependent on social security or unemployment benefits.
- You cannot pay with your income since the Internal Revenue Service has specific requirements for this sort of hardship arrangement.
You’d like to submit an application for lien subordination. The IRS agrees to have its claim placed as a subordinate to another lien when this occurs. Consider the following scenario: If you wish to take out a home equity loan to pay off a tax payment, the lender may only approve the loan if the lien takes priority over the IRS lien.
- You want the lien dismissed so that you may sell the underlying asset and make a payment to the Internal Revenue Service.
- This is necessary since you have either previously paid in full or are engaged in a payment plan, and the lien must be erased off your credit report.
Other justifications may be acceptable to the IRS, but these are some of the most often cited.
And If You Don’t Agree With The Amount Owed On Your Notice, What Do You Do?
You may also seek a collection due process hearing (Form 12153) if you believe you are being overcharged for taxes. However, you can only do so in very rare circumstances. To be specific, you may only contest the amount payable if and only if the following conditions are met:
- You did not get a statutory notice of deficiency, as required by law.
- If you did not get a notification to submit a petition to the Tax Court,
- Alternatively, if you did not have an opportunity to contest your obligation earlier,
You are not permitted to bring up problems that have already been discussed.
However, if you do not fulfill these requirements, you have just three options for appealing the amount owed at this point:
- Pay the taxes in whole and on time. After that, submit a refund claim with the IRS and file an appeal if your refund is denied.
- Request a re-evaluation of the audit based on the new facts.
- If you have any doubts about your culpability, you should file an Offer in Compromise.
All of the solutions listed above are difficult, and you may wish to seek expert assistance in any of those circumstances.
What Is The Procedure For Submitting A CDP Request?
Form 12153, Request for Collection Due Process Hearing, must be completed in order to request a hearing (Request for a Collection Due Process or Equivalent Hearing). This is a rather easy application. It asks for information such as your name, ID number, address, phone number, and the best time to contact you. You must also include the information from your tax lien or levy notification in your letter.
If you wish to apply for innocent spouse relief, you may check the appropriate option. If you do not submit a written request for a hearing, you will be required to do so. It is a mandatory component of the form, and you will not be granted a hearing if you do not provide a compelling justification. You may use any of the justifications mentioned above, as well as any that your tax expert suggests.
Upon receipt of this document by the Internal Revenue Service, all collection efforts are halted, and the 10-year statute of limitations is suspended. Your request for a response from the IRS will only be considered if you postmark the IRS form before the end of the 30-day period after the date on which you received your Notice of Intent to Levy or Tax Lien.