CDP Hearing (Collection Due Process)
Definition
A Collection Due Process hearing is a formal taxpayer right under IRC § 6330 to appeal an IRS lien filing or proposed levy before an independent Appeals Officer, with the option to escalate to U.S. Tax Court if Appeals disagrees.
Why This Matters for Tax Relief
The CDP hearing is the gold standard of IRS defense rights. It provides a mandatory pause on IRS levy action while the hearing is pending and grants access to an independent Appeals Officer who was not involved in the original collection decision. The CDP request must be filed within 30 days of the Final Notice of Intent to Levy using Form 12153. During the hearing, the taxpayer can raise collection alternatives including an Offer in Compromise, installment agreement, CNC status, or lien subordination. If the Appeals Officer rules against the taxpayer, the case can be escalated to U.S. Tax Court for judicial review — making this the only administrative process with direct court access. Critical limitation: filing a CDP request tolls (pauses) the CSED clock for the entire duration of the hearing plus 90 days after the Tax Court decision becomes final. For taxpayers near their CSED expiration, this trade-off must be carefully evaluated.
2026 Update
In 2026, the IRS Office of Appeals has shifted most CDP hearings to secure video conference format rather than in-person meetings. Taxpayers retain all rights under this format. The 30-day filing window from the levy notice date has not changed.
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Related Terms
CAP Hearing (Collection Appeals Program)
A Collection Appeals Program hearing is a faster, less formal IRS appeals process for disputing rejected installment agreements, proposed lien filings, or levies — but unlike a CDP hearing, it does not provide Tax Court access.
Audit Reconsideration
Audit reconsideration is an IRS administrative process that allows a taxpayer to dispute an assessment made from an audit they did not attend, did not agree with, or have new documentation to support.
Taxpayer Advocate Service (TAS)
The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers resolve problems with the IRS and recommends systemic changes to prevent future problems.
Notice of Deficiency (90-Day Letter)
A Notice of Deficiency is a formal IRS determination that additional tax is owed, triggering a 90-day window during which the taxpayer may petition the U.S. Tax Court without first paying the disputed amount.