What is Collection due process hearing?
In short
Before the Internal Revenue Service levies on property, and after it files a federal tax lien, the taxpayer can request a collection due process hearing with the agency's independent appeals office within 30 days of the notice.
Key takeaways
- The taxpayer can propose alternatives, such as an installment agreement or an offer in compromise.
- The underlying liability can be challenged only if the taxpayer had no earlier chance to dispute it.
- The appeals decision can be challenged in the Tax Court.
Where it's tested
REG: Internal Revenue Service (IRS) Procedures & Appeals — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A taxpayer wishes to dispute a proposed deficiency without first paying the disputed amount. Which court must the taxpayer use?