IRS Form 12153 – Collection Due Process Hearing Request

Every year, more than a million federal tax liens are filed against taxpayers with unpaid taxes. If you’ve received an IRS notice, IRS Form 12153 is your chance to stop enforced collection actions like levies, wage garnishments, or property seizures.

This form allows you to request a Collection Due Process (CDP) hearing with the IRS Independent Office of Appeals. A timely CDP hearing request gives you the right to a hearing before the IRS can proceed with specific collection actions. It also temporarily halts those actions, giving you time to explore payment alternatives or other relief options, including innocent spouse relief or an installment agreement.

Filing IRS Form 12153 is not just about delaying IRS collection actions — it’s about protecting your rights. Acting within the 30-day deadline from the notice date is crucial. Missing this window could mean losing your appeal rights in Tax Court and facing a tax lien or levy that could affect your credit, bank account, and state tax refund.

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What Is IRS Form 12153?

IRS Form 12153 is the official tax form to request a Collection Due Process (CDP) hearing. When the IRS intends to levy your bank account, file a federal tax lien, or has already taken specific collection actions, this form allows you to challenge those actions and propose solutions. Submitting a timely CDP hearing request stops IRS collection actions while the hearing is pending, protecting your income and assets from enforced collection.

Purpose of the Form

Form 12153 is your legal safeguard under the Internal Revenue Code to ensure due process before the IRS takes property. The CDP hearing allows you to:

• Dispute the filing of a federal tax lien or levy notice.
  
  
• Negotiate a payment plan or installment agreement to pay your tax liability.
  
  
• Request collection alternatives such as offer in compromise, currently not collectible status, or innocent spouse relief.
  
  
• Raise issues such as improper notice or financial hardship before an impartial appeals officer.

CDP Hearing vs. Collection Appeals Program (CAP)

Many taxpayers confuse a CDP hearing with the Collection Appeals Program. While both can stop collection actions, they are not the same. Use the table below to see the difference.
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Understanding these differences helps you choose the correct appeal route. In most cases, Form 12153 provides stronger protection because it preserves your right to judicial review if you disagree with the appeals decision.

Why Did You Receive IRS Form 12153 or a Right to a Hearing Notice?

The IRS sends a notice of your right to a hearing when it plans to take or has taken specific collection actions. These notices are usually tied to unpaid taxes, a past-due tax bill, or a final notice of intent to levy. Receiving this notice is not random—it means the IRS intends to begin enforced collection unless you respond within the required timeframe.

Common Notice Triggers

You may receive a notice of federal tax lien or levy notice under several circumstances:

• Notice of Federal Tax Lien Filing: The IRS has filed a federal tax lien to secure its interest in your property and future assets.
  
  
• Final Notice of Intent to Levy: The IRS intends to levy wages, bank accounts, or other property to collect unpaid taxes.
  
  
• Post-Levy CDP Notice: You may still be eligible to request a CDP hearing after a levy has been issued, provided you file within the notice date deadline.

The Importance of the Notice Date

The date printed on your IRS notice determines your filing window for a timely CDP hearing. Typically, you have 30 days from the notice date to submit Form 12153. Missing this deadline limits your rights to an equivalent hearing, which does not allow judicial review in Tax Court.

Why the IRS Sends These Notices

The IRS must legally inform you of your right to a hearing before most enforced collection actions. This allows you to propose payment arrangements, request innocent spouse relief, or present evidence of financial hardship before a settlement officer from the Independent Office of Appeals.

Consequences of Ignoring a Collection Due Process Notice

Ignoring a CDP notice can have serious financial and legal consequences. Once the 30-day window to file IRS Form 12153 passes, the IRS can proceed with enforced collection actions without further delay.

Enforced Collection Actions

The IRS has broad authority under the Internal Revenue Code to collect unpaid taxes. If you miss the deadline, you may face:

• Bank Account Levies: Funds in your bank account can be seized to satisfy tax debt.
  
  
• Wage Garnishments: A portion of your paycheck can be withheld until the tax liability is paid.
  
  
• Property Seizures: The IRS can seize vehicles and real estate assets.
  
  
• Tax Refund Offsets: Federal and state tax refunds may be applied toward the balance.
  
  
• Social Security Benefits Offsets: A percentage of benefits can be withheld to cover tax debt.
  
  
• Federal Tax Lien Filing: The lien will remain on your credit record, making it difficult to get loans or sell property.

Loss of Appeal Rights

When you miss the deadline, you lose the right to a timely CDP hearing and judicial review in Tax Court. You can still request an equivalent hearing, but IRS collection actions continue during that process, and you cannot challenge the decision in court.

Escalation of IRS Collection Actions

Once your appeal rights expire, IRS employees can move forward with additional collection actions. This can include a jeopardy levy in urgent cases or referral to enforced collection programs that leave you with limited options for relief.

Relief and Resolution Options

Requesting a Collection Due Process hearing is more than just delaying IRS collection actions—it’s a chance to find a solution that works for your situation. At your hearing, you can propose several collection alternatives to resolve your tax liability and prevent future enforcement.

Collection Alternatives

• Installment Agreement (Payment Plan): If you can pay your tax bill over time, an installment agreement may be the simplest option. You’ll make monthly payments to reduce tax debt and avoid levies or wage garnishments. Interest and penalties continue to accrue until the balance is paid, but you stay in good standing with the IRS.
  
  
• Offer in Compromise (OIC): For taxpayers unable to pay their full tax liability, the IRS may agree to settle for less through an offer in compromise. This option is based on your ability to pay, income, expenses, and asset equity. It requires complete financial disclosure, including a detailed financial statement and supporting documents.
• Currently Not Collectible (CNC) Status: If paying anything would cause financial hardship, you can request that your account be placed in CNC status. This temporarily stops collection actions until your financial situation improves, though interest will continue to grow.

Special Circumstances

Certain situations require additional review or documentation:

• Innocent Spouse Relief: If your spouse or ex-spouse caused the tax debt, you can request relief during the CDP hearing.
  
  
• Employment Taxes: Employers with payroll tax issues can propose payment arrangements to avoid aggressive collection.
  
  
• Jeopardy Levy Cases: If the IRS believes collection is at risk, they may act quickly. A CDP hearing gives you a chance to challenge this action.

Comparison Table 2: Payment Alternatives Overview

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Exploring these alternatives before or during your CDP hearing helps you present a solid case to the settlement officer and increases the chance of a favorable appeals decision.

How to Respond to IRS Form 12153

Filing Form 12153 correctly and on time is crucial in protecting your rights. A complete and timely CDP hearing request will stop IRS collection actions until your case is reviewed.

Steps to Complete the Form

1. Fill Out Your Personal and Tax Information: Include your name, address, phone number, tax form number (such as Form 1040 for individual income taxes), and the tax period.
   
   
2. Check the Reason for Your Request: Indicate whether you are appealing a notice of federal tax lien filing, levy notice, or final notice of intent to levy.
   
   
3. State Your Request Clearly: Specify what collection alternative you seek, such as a payment plan, offer in compromise, or innocent spouse relief.
   
   
4. Attach Supporting Documents: Provide financial statements, tax returns, and other relevant documentation to support your case.
   
   
5. Sign and Date the Form: Unsigned forms are considered invalid and may result in a missed deadline.

Mailing Instructions

Send your form to the IRS address listed on your notice using certified or registered mail. This ensures you have proof of mailing and proof that the IRS receives it. Keeping this documentation is critical for demonstrating a timely CDP hearing request.

What Happens After You File

Once the IRS receives your hearing request, it will temporarily stop collection actions and forward your case to the Independent Office of Appeals. A settlement or appeals officer will contact you to schedule your CDP hearing, which may be held by phone, by correspondence, or in person.

During the hearing, you can present your proposed resolution, raise any disputes about the tax liability, and explain any financial hardship. After reviewing your case, the IRS will issue a Notice of Determination outlining the decision. If you disagree, you may take the case to Tax Court within 30 days of the notice.

Professional Help and Resources

Handling a Collection Due Process hearing can be stressful, especially when facing enforced collection actions like levies or federal tax liens. Working with a tax professional or attorney can help you navigate the process, present the right collection alternative, and avoid mistakes that could delay your case.

Using Your IRS Account Transcript

Before your CDP hearing, you’ll need accurate information about your tax periods, assessments, and payments. This is where our IRS Account Transcript Service can help. We retrieve your complete IRS account transcript and translate it into plain English so you know exactly what the IRS sees on their end. Having this documentation ready helps you:

• Verify the amount of tax liability the IRS is trying to collect.
  
  
• Confirm whether the notice date and tax periods listed are correct.
  
  
• Gather supporting documents for payment arrangements or innocent spouse relief requests.

This preparation ensures your appeals officer or settlement officer has the most accurate information and increases the chance of a favorable appeals decision.

With the right transcript data and professional representation, you can confidently attend your CDP hearing, protect your appeal rights, and work toward a resolution that fits your situation.

Frequently Asked Questions (FAQs)

What is a Collection Due Process Hearing?

A Collection Due Process (CDP) hearing is a formal meeting with the IRS Independent Office of Appeals, where you can challenge collection actions like a federal tax lien or levy notice. You can propose a payment plan, offer in compromise, or other collection alternatives. If you disagree with the final notice or decision, you may seek judicial review in Tax Court.

What if I Miss the 30-Day Deadline for Form 12153?

If you miss the deadline, you can still file for an equivalent hearing within one year of the notice date. However, IRS collection actions such as bank account levies or wage garnishments will continue during the process, and you lose the right to Tax Court review. Filing on time preserves your strongest appeal rights and halts enforced collection actions.

Can I Request Innocent Spouse Relief in a CDP Hearing?

Yes. You can request innocent spouse relief during your CDP hearing if your tax debt resulted from a spouse’s or ex-spouse’s actions. You must provide supporting documents, such as tax returns and a financial statement, to show why you qualify. This request can help reduce or eliminate your share of the tax liability if approved.

Will the IRS Stop Collections While My Hearing Request is Pending?

Yes, filing IRS Form 12153 for a timely CDP hearing generally suspends IRS collection actions like levies, wage garnishments, and seizures until a determination is made. Federal tax liens will remain filed, but new collection actions should pause. This allows you to negotiate a payment alternative and prevents immediate harm to your income or property.

Do I Need a Tax Attorney for a CDP Hearing?

It isn’t legally required, but professional representation can make the process much easier. A tax attorney or authorized representative can prepare supporting documents, negotiate payment arrangements, and communicate directly with the settlement officer. Having experienced expert guidance helps you avoid mistakes that could result in enforced collection or IRS denial of your requested relief.

Need help with your IRS Form 12153?

Don’t wait until the IRS takes money from your bank account or files a tax lien. Requesting a CDP hearing on time is critical—and having accurate records makes a difference. Our IRS Account Transcript Service helps you verify your tax history and prepare a strong case.
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Take the first step today to protect your rights, stop enforced collection, and find the best resolution for your tax debt.

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