Appealing a Levy – The Collection Due Process (CDP) program

A second method of administrative appeal is by use of the Collection Due Process (CDP) program. A CDP hearing before levy is available in levy cases where the taxpayer has received a notice of intent to levy. A notice of intent to levy is accompanied by a notification in writing of the taxpayer’s right to a hearing before levy. If the taxpayer requests a hearing, the hearing will be conducted by an officer or employee in IRS’s Office of Appeals who did not previously participate in matters involving the taxpayer and the unpaid tax at issue. IRS doesn’t have to send a notice of intent to levy:

  • If it finds that collection of tax is in jeopardy.
  • Before levying on a state to collect a federal tax liability from a state tax refund.
  • For “disqualified employment tax levies.”
  • For certain “federal contractor levies.” However, in such cases a post-levy CDP hearing is available. Like CAP hearings, CDP hearings are informal. A CDP hearing doesn’t require a face-to-face meeting, but a taxpayer can ordinarily get a face-to-face meeting if he wants it, except where he makes only irrelevant or frivolous arguments

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