The CDP hearing
Filing Form 12153 within 30 days preserves your right to a hearing with the IRS Office of Appeals. The hearing can address whether the tax is owed, whether the IRS followed proper procedure, and what collection alternative fits your situation. The hearing suspends collection.
How to file Form 12153 properly
Complete the form, state the collection alternative you want (installment agreement, OIC, CNC, lien subordination), and mail it to the address on the LT11 with proof of mailing. Vague requests waste the hearing; specific proposals with numbers attached get evaluated. Certified mail matters because the timeliness of the request is measured by postmark.
What happens at the hearing
CDP hearings are usually phone conferences with a settlement officer, not courtroom events. You submit financials in advance, the officer verifies the IRS followed required procedure, and the discussion centers on which resolution both sides can live with. Most hearings end with an agreement in place rather than a levy. If you disagree with the determination, you have 30 days to petition Tax Court for review.
What happens if you miss the 30 days
You lose the CDP hearing. An 'equivalent hearing' is available but doesn't suspend collection and has no judicial appeal. Levy can proceed.
If a levy actually lands
Wage levies are continuous and take a painful share of every paycheck until released. Bank levies freeze the account balance for 21 days before the bank remits, which is a short window to negotiate a release. Levy release is available for economic hardship, but proving hardship after the fact is far harder than requesting the hearing on time.
Common questions
- Is 30 days from the date on the letter or when I received it?
- Date on the letter. Don't delay, if you get it late, the window may already be closing.
- Does requesting the hearing actually stop a levy?
- Yes. A timely CDP request suspends levy action on the covered tax periods until the hearing concludes and the determination is issued.
- Can I dispute the tax itself at the hearing?
- Only if you never had a prior opportunity to dispute it, such as a Notice of Deficiency you never received. Otherwise the hearing is about how the debt gets collected, not whether it exists.
- What if I already have a payment plan and got an LT11 anyway?
- Occasionally letters cross with agreement processing, and occasionally an agreement defaulted without the taxpayer noticing (a missed payment, a new unpaid balance). Either way, respond within the window; don't assume it's a mistake that will fix itself.
Related
Tax Relief & Back Taxes
Back tax filings, installment agreements, penalty abatement, and offer-in-compromise support for taxpayers behind with the IRS. We file first, then negotiate.
IRS Audit Representation
Herman Viglione, EA, represents taxpayers in IRS and state audits. Correspondence, office, and field audits handled remotely for clients in any state.
Responding to an IRS CP504 Intent to Levy
The CP504 is a notice of intent to levy. Your state refund is the first target; federal levy on wages and bank accounts follows an LT11. Your remaining options.
Related tax topics
Responding to an IRS CP2501 Notice
The CP2501 comes before a CP2000: the IRS sees an income mismatch and wants your explanation before proposing tax. Respond within 30 days with documentation.
Understanding an IRS CP12 Notice
A CP12 means the IRS corrected a math or credit error and your refund changed. You have 60 days to contest the change. What to verify before cashing the check.
Responding to an IRS Notice of Deficiency
The Notice of Deficiency (90-day letter) is your window to petition Tax Court without paying first. Pay, petition within 90 days, or the tax becomes final.
Responding to an IRS Letter 525
Letter 525 is the 30-day letter after an audit. A written protest within 30 days preserves your right to IRS Appeals, where most audit disputes settle.