Internal Revenue Code §6330- Notice and opportunity before levy.
§6330(a)(1) “No levy may be made on any property or right to property of any person unless the Secretary has notified such person in writing of their right to a hearing under this section before such levy is made. Such notice shall be required only once for the taxable period to which the unpaid tax relates.”
A Collection Due Process hearing is the taxpayers chance to challenge the appropriateness of the proposed collection actions and offer collection alternatives. A Collection Due Process hearing is available to taxpayers who have received any of the following notices:
- Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320
- Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing
- Notice of Jeopardy Levy and Right of Appeal
- Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing
- Post Levy Collection Due Process (CDP) Notice
TIME IS OF THE ESSENCE! Taxpayers have only 30 days after receiving one of the notices above to request a CDP hearing. If the taxpayer does not make a timely (within 30 days) request for a CDP hearing, the taxpayer may still be able to request an “equivalent hearing.” For a taxpayer to request an equivalent hearing the request must be postmarked on or before the end of the one-year period after the date of levy notice.
What is the difference between a “CDP Hearing” and an “Equivalent Hearing”?
Taxpayers can appeal the final determination of a CDP hearing to the United States Tax Court doing this would stop any collection actions. The final determination of an equivalent hearing cannot be appealed.
For additional information on Collection Due Process Rights see IRS Publication 1660.
If you need to speak with a tax attorney to discuss a tax matter, contact our law office at (212) 520-2906.