An IRS collection due process hearing is an independent review by the IRS Independent Office of Appeals that you can request after the IRS files a federal tax lien or sends a final notice of intent to levy. You generally have 30 days to ask for it on Form 12153, and a timely request usually pauses levy action while Appeals reviews your case.
If you are holding a lien or levy notice right now, call (415) 754-0115 to schedule a free consultation, or send a short message through our contact page. The date printed on that letter matters more than almost anything else in this article.
Which letters give you the right to a hearing
The right comes from two sections of the Internal Revenue Code: section 6320 for liens and section 6330 for levies. The letter itself will say "Notice of Your Right to a Hearing" somewhere in its title or body.
Levy notices
The most common are Letter 1058 and notice LT11, both titled along the lines of "Final Notice of Intent to Levy and Notice of Your Right to a Hearing." The IRS must send one of these at least 30 days before it levies wages, bank accounts or other property in most situations.
Lien notices
After the IRS records a Notice of Federal Tax Lien, it sends Letter 3172. Your hearing window runs for 30 days after the end of the five-business-day period that follows the filing of the lien.
Situations where the hearing comes later
A few levies can happen first and be reviewed afterward, including levies on state tax refunds, jeopardy levies and certain levies involving federal contractors or employment taxes. In those cases you still receive hearing rights, but after the levy rather than before it.
Requesting an IRS collection due process hearing on Form 12153
Form 12153, Request for a Collection Due Process or Equivalent Hearing, is short, but small mistakes cost people their rights. Send it to the address shown on the notice, not to a general IRS office, and keep proof of the mailing date.
- List every tax period and form type shown on the notice you are contesting.
- Check the boxes for the collection alternatives you want considered, such as an installment agreement, an offer in compromise or currently not collectible status.
- Explain briefly why you disagree with the lien or levy.
- Sign it. If a representative files for you, a signed power of attorney (Form 2848) should accompany it.
What you can raise in a collection due process hearing
The Appeals officer must verify that the IRS followed the law and procedure, then weigh whether the proposed collection action is more intrusive than necessary. Within that framework, you can raise several kinds of issues.
Collection alternatives
This is usually the heart of the hearing. You can propose a payment plan, submit an offer in compromise, or show that paying anything right now would leave you unable to cover basic living expenses. To do that, Appeals will expect a current financial statement, usually Form 433-A for individuals or Form 433-B for businesses, along with proof of income and expenses.
Why the paperwork has to be ready
Appeals officers set short deadlines for financial information. When the paperwork arrives late or incomplete, the officer can sustain the levy simply because there was nothing to evaluate.
Lien-specific relief
In a lien hearing you can ask for withdrawal of the lien, subordination so you can refinance, or discharge of specific property so it can be sold. If the problem is a levy rather than a lien, our guide on releasing an IRS bank levy covers that side of the process.
Spousal defenses and the underlying balance
You can raise innocent spouse relief. You can also dispute the amount of tax itself, but only if you never received a statutory notice of deficiency and had no other earlier chance to challenge the liability.
The equivalent hearing if the deadline passed
Missing the 30-day window does not end your options. You can still file Form 12153 and request an equivalent hearing, generally within one year of the levy notice date or, for liens, within one year after the end of the five-business-day period following the lien filing.
An equivalent hearing covers the same issues before the same Appeals office, with two major differences. There is no automatic statutory hold on levies while it is pending, and you cannot petition the U.S. Tax Court if you disagree with the result. Appeals issues a "decision letter" rather than a notice of determination.
After Appeals decides
Following a timely hearing, Appeals issues a Notice of Determination. If you disagree, you generally have 30 days from that notice to petition the U.S. Tax Court. The court reviews whether Appeals abused its discretion, and it usually looks only at the record created in the hearing, which is one more reason to put your financial information and arguments in front of Appeals the first time.
One side effect is worth knowing: a timely hearing request suspends the ten-year collection statute while the case is pending. Whether that trade-off makes sense depends on your dates and goals, so it belongs in the strategy discussion.
How the Somal Law Firm approaches these cases
Attorney Bob Somal handles IRS disputes and collection matters as part of the firm's tax law practice, alongside bankruptcy and debt relief. For clients in Pleasanton, Dublin, Livermore, San Ramon, Danville and elsewhere in Alameda and Contra Costa Counties, that combination matters: sometimes the right answer to a levy is an Appeals agreement, and sometimes it is part of a larger plan that includes other debts. If you are already unable to pay anything, our article on currently not collectible status explains that option in more depth.
At a first meeting, bring the notice, any earlier IRS letters, your last two tax returns, and recent pay stubs and bank statements. That is usually enough for an attorney to review the deadline, the balance and the realistic alternatives.
Frequently asked questions
Does requesting a hearing stop a wage garnishment that already started?
A timely request made in response to a pre-levy notice generally prevents the levy from starting. If a levy is already in place, the request does not automatically undo it, although Appeals can consider a release as part of resolving your case.
Can I request a hearing just to buy time?
The IRS can treat requests based solely on frivolous arguments as invalid and may impose a penalty. A request that proposes a genuine collection alternative is not frivolous, even if you also need time to gather records.
Is the hearing in person?
Most collection due process hearings take place by phone or through correspondence. In-person conferences are sometimes available, but they are not the norm.
What if I never received the notice?
Hearing rights are tied to the notice being properly sent to your last known address. An attorney can pull your IRS account transcripts to see what was mailed and when, which helps determine which type of hearing is still available.
Deadlines on IRS notices move quickly. Call (415) 754-0115 to schedule your free consultation with the Somal Law Firm in Pleasanton, or use our contact page as a second option. We will look at the notice with you, confirm your timeline and explain the options that fit your situation.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.