Final Notice of Intent to Levy and Your Right to a Hearing:
The letter will come by Certified Mail. Generally, it is “Letter 1058 or CP-90. See below.
Do not confuse it with Notice CP-504, which states that they intend to levy or take your state tax refunds. If they do levy or take any State tax refunds, you will receive an additional letter that will allow you to request a Collection Due Process hearing.
This notice allows you to request what is known as a Collection Due Process Hearing. The request must be in writing using Form 12153, “Request for a Collection Due process Hearing”, sent to the office that sent the letter. A telephone call to the IRS does not protect your rights to a Collection Due process Hearing. Also, send the request by certified mail to prove the Hearing was timely requested..
If you do not request a hearing within the 30 day period, the IRS has the right to levy your bank accounts, payroll, settlements and other assets.
Collection Due Process was enacted by Congress in 1998. You are allowed to request a Hearing when you receive a Final Notice of Intent to Levy, When the IRS levies on your State tax refund and when they file a Federal Tax Lien.
Remember, however, that you only have 30 days from the date on the notice to request a Collection Due Process Hearing and be allowed the rights available with such a hearing.
If you file a request after the 30 day period, you will be allowed what is known as an Equivalent hearing. The Equivalent hearing does not have the same rights as a regular CDP Hearing.
Once the request has been filed, the request will be sent to the Appeals office of the IRS. The Appeals office will contact you when they have received your case for consideration and will request documents and information from you.
They will consider offers of collection alternatives such as an Installment Agreement, an Offer in Compromise and/or classification as Currently not collectible as well as other resolutions. Hardship cases.
Appeals is separate from and independent of the division of the Internal Revenue Service proposing the action. They are an independent function. The CDP hearing is generally conducted by telephone and mail. You may request what is known as a face-to-face conference at the Appeals Office closest to your residence or business address.
Quite frankly I have found Appeals to be very professional and helpful in resolving disputes. In other words, I have a great respect for the people in Appeals.
I do recommend that you have a professional represent you in these hearings.
If you have received this notice or if you have received a Notice of Federal Tax Lien, Contact Us. Don’t bury your head in the sand. You will only lose your very important rights.