Collection Due Process (CDP) Flashcards
What form must be filed to request a CDP hearing, and what is the deadline?
CDP is a hearing with the IRS Office of Appeals to challenge the IRS’s collection actions. It’s authorized under IRC § 6320 for lien notices and IRC § 6330 for levy notices.
What are the taxpayer’s rights during a CDP hearing, as outlined in IRC § 6330(c)?
Form 12153, Request for a Collection Due Process or Equivalent Hearing, must be filed within 30 days of receiving a lien or levy notice.
What are the potential outcomes of a CDP hearing, as described in IRC § 6330(d)?
The taxpayer has the right to present issues, propose alternatives, have the issues considered by an independent Appeals officer, and seek judicial review of the determination.
What is an Equivalent Hearing, and how does it differ from a CDP hearing?
Outcomes can include the withdrawal, modification, or affirmation of the proposed levy or filed notice of federal tax lien. A taxpayer can also appeal the determination in Tax Court.
How is the CDP hearing related to the suspension of the Collection Statute Expiration Date (CSED)?
An Equivalent Hearing is similar to a CDP hearing but can be requested within one year after the 30-day CDP deadline. The decision is not subject to judicial review, unlike the CDP hearing (IRC § 6330(d)).
What is the significance of IRC § 6330(g) in dealing with frivolous or delaying arguments by the taxpayer?
The CSED is suspended during a CDP hearing and remains suspended until the determination becomes final, plus an additional 90 days (IRC § 6330(e)(1)).
What Revenue Ruling provides guidance on the conduct of CDP hearings?
IRC § 6330(g) allows the IRS to disregard frivolous or delaying arguments by the taxpayer, thus preventing the misuse of the CDP process to merely delay collection.
How does IRC § 6330(c)(4) limit the taxpayer’s ability to raise issues during a CDP hearing?
Revenue Ruling 2006-46 outlines procedures and expectations for conducting a CDP hearing, ensuring that the taxpayer’s rights are upheld.
How does IRC § 6330(c)(4) limit the taxpayer’s ability to raise issues during a CDP hearing? IRC § 6330(c)(4) prohibits the taxpayer from raising an issue that was already considered in any previous administrative or judicial proceeding if the taxpayer meaningfully participated in that prior proceeding.
IRC § 6330(c)(4) prohibits the taxpayer from raising an issue that was already considered in any previous administrative or judicial proceeding if the taxpayer meaningfully participated in that prior proceeding.
