Collection Due Process Appeals

The Collection Due Process (“CDP”) Hearing is a very valuable tool taxpayers can use to work out a reasonable resolution to their tax problem with an appeals-level officer at the IRS before the rank-and-file collectors seize money from your pocket, your bank account, or your pay check.

Imagine being able to work out a reasonable resolution, one that is less painful, less disruptive, less onerous than freezing your bank account and seizing it or garnishing your paycheck: The CDP hearing is designed to make this possible.

But, while all taxpayers have the right to a CDP hearing, these valuable rights are very time-sensitive, and if you are not paying attention, not opening your mail, and if you don’t act quickly, you can give up your valuable CDP rights never to have them again (well, almost never – read about Allan R. Pearlman’s rare and unique victory in getting the IRS to restore a taxpayer’s CDP hearing rights after the IRS wrongly took them away by click here — see “IRS Backs Down and Apologizes” ).

CDP Hearing rights are useful, valuable, but they are on a short fuse, and the rules can be tricky. If you don’t deal with the bureaucrats at the IRS all the time, you can protect your rights by getting the help of a professional who does.

IRS Backs Down and Apologizes

In a victory over the government which has been hailed by other tax professionals as unprecedented, attorney Allan R. Pearlman recently persuaded the Internal Revenue Service to withdraw and rescind its action to start seizing a taxpayer’s assets. Read the whole story of the IRS apology and restoration of a taxpayer’s rights by clicking here.

See a copy of the actual Apology and Rescission letter by clicking here.

IRS Apology & Restoration of Rights Letter

The following is the text of a letter which the IRS sent to a client in the Fall of 2007 (highlighting emphasis added):

“Rescission Letter – Notice of Intent to Levy Sent in Error”

“We are sorry that the [Internal Revenue] Service made a mistake in recently sending you a Notice of Intent to Levy and Notice of Your Right to a Hearing, dated April 2, 2007. The letter advised you that they would take collection action if you did not pay the amount of tax you owe or ask for a Collection Due Process (CDP) Hearing within 30 days. Because they do not intend to take levy or seizure action against you at this time, we are rescinding the Notice of Intent to Levy and canceling your request for a CDP Hearing.

“By law, you are entitled to only one CDP Hearing under internal Revenue Code Section 6330 for the unpaid taxes listed in the Notice of Intent to Levy. This letter preserves your right for a future CDP Hearing should that become necessary. You do not have to do anything further regarding this request.

“The two circumstances under which the law does not entitle you to receive notification before levy or seizure of your property are:

  • If the Service levies a state tax refund owed to you.
  • If the Service seizes property after determining that a delay would jeopardize the collection of your unpaid taxes.

“The law entitles you to a CDP Hearing, but the hearing would take place after the levy or seizure.

“We apologize for any confusion or inconvenience the sending of the Notice of Intent to Levy may have caused.

“If you have any questions about this letter, you may phone or write me. My information is shown at the top of the first page of this letter.

“Thank you for your cooperation.”

[signed by IRS Appeals Team Manager]
blast through tax debt

Contact Me

Law Office of Allan R. Pearlman

Address
116 West 23 Street
Suite 500
New York, NY 10011

Phone
(646) 827-4257

E-mail
arp@arpearlmanlaw.com

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