5.19.8. Collection Appeal Rights

(1) The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR see: https://www.irs.gov/taxpayer-bill-of-rights.

(1) The authorities relating to this section include:

• IRC 6320 and CFR 301.6320-1, - the right to appeal the filing of a Notice of Federal Tax Lien.

• IRC 6330 and CFR 301.6330-1, - the right to appeal before or after levy action is taken, depending on the type of levy.

• IRC 7122(e) - the right to appeal the Service’s rejection of an installment agreement request.

• Treas. Reg. Section 301.6159 - 1(e)(5), and IRC 6159(e) - the right to appeal proposed modification or actual modification, and to appeal proposed termination or actual termination of an installment agreement.

• Taxpayer Bill of Rights, IRC 7803(a)(3).

(1) The Director, Collection Policy, SBSE, is responsible for all policies within the Collection Appeal Rights program.

(2) Campus Tax Policy is responsible for development and delivery of policies. This function coordinates with the National Program Manager, Collection Campus Operations, since the actual operations are located within the campus and ACS call-sites.

(3) Campus Operations managers of ACS Support CDP Units, CSCO and ACS Call-Site managers are responsible for ensuring that the IRM procedures are followed.

(4) Tax Examiners (TE) in the campuses that work CDP/EH cases and CAP cases and Collection Representatives in the ACS Call-Sites that work CAP cases are responsible for following the IRM procedures.

(1) All CDP/EH cases worked are reviewed by TE leads and approved by managers. The four campuses that work CDP/EH cases (Philadelphia, Cincinnati, Kansas City, Fresno) each have a CDP Coordinator that reviews work, monitors, resolves issues and elevates problems to the HQ CDP analyst for resolution.

(2) Monthly CDP and CAP reports of volumes and inventory are provided by SBSE Performance, Planning & Analysis.

(3) Weekly Accounts Management Services (AMS) reports of CDP inventory and overage percentages are provided by SBSE Performance, Planning & Analysis.

(4) Program reviews are performed by Collection Policy to determine whether procedures are being followed.

(5) Operational reviews are performed by senior management and executives.

(6) Ongoing HQ analyst contact with the campus operations to monitor the collection appeals program and resolve problems.

(7) Campus managers use the Embedded Quality Review System (EQRS) to perform quality reviews on CDP work.

(8) HQ analysts use the National Quality Review System (NQRS) to examine CDP quality statistics.

(9) Quality reviews are performed by the NQRS staff.

(1) The Collection Due Process Tracking System (CDPTS) is used by the campus CDP Units to keep track of the disposition of CDP/EH requests received.

(2) The HQ analyst with the Appeals organization provides feedback when issues arise with CDP/EH front-end cases. Similarly, the HQ Collection CDP analyst will alert the Appeals analyst of any problems with CDP back-end cases.

(3) Appeals coordinates with Collection’s CDP analysts when problems with CDP processing are identified.

(4) Monthly CDP and CAP reports of volumes and inventory provided by SBSE Performance, Planning & Analysis are used by HQ ET to monitor the status of volume and inventory levels by enterprise, business operating division (BOD), and campus ACS Support.

(5) Weekly ACS Support program volumes and inventory overaged reports provided to HQ ET by Campus Collection Operations HQ staff are used to monitor the percentage of overaged volume.

(6) Accounts Management Services (AMS) reports of CDP inventory are available to the HQ ET analyst to determine the average days in inventory and the overage percentage.

(1) The most common terms and acronyms associated with this program are as follows:

(1) ACS CDP Coordinator finder: a SERP website used to determine the appropriate CDP Coordinator based on the state location of the taxpayer. It is found under the Who/Where tab: ACS CDP Coordinators.

(2) Taxpayer Bill of Rights (TBOR): This program provides a mechanism for taxpayers to appeal collection actions proposed or already taken by the Service. It gives the taxpayer the opportunity to work towards a resolution with Collection or to obtain a determination or decision on the issue from Appeals. For Additional information about TBOR, see: Taxpayer Bill of Rights.

(3) MySB/SE intranet website: For general information about the Collection Due Process (CDP), see: Collection Due Process.

(4) IRM 5.19.6, ACS Support.

(1) Taxpayers may appeal many IRS collection actions. There are various appeal procedures available to them. The two main procedures are Collection Due Process (CDP) and Collection Appeals Program (CAP). This section discusses the rights taxpayers have to appeal collection actions under CDP and CAP.

(2) Collection Due Process (CDP) rights are provided by statute:

1. IRC 6320 – Gives the taxpayer the right to appeal the filing of a Notice of Federal Tax Lien.

2. IRC 6330 — Gives the taxpayer the right to appeal before or after levy action is taken, depending on the type of levy.

(3) Collection Appeals Program (CAP) rights are provided by statute and administratively:

(4) Taxpayers have additional appeal rights, including those related to:

• Trust Fund Recovery Penalties, see IRM 5.7.6.1.3, Appealing the Proposed Assessment.

• Rejected Offers in Compromise, see IRM 5.8.7.7.5 , Rejection Appealed.

• Penalties, see IRM 20.1, Penalty Handbook.

• Audit Reconsideration, see IRM 4.13.6, Appeals

(1) The CDP appeal provisions give taxpayers an opportunity for an independent review by Appeals, to ensure that the proposed levy or notice of lien filing is warranted. Service employees will attempt contact with the taxpayer and seek to use alternative methods to resolve the case, such as an installment agreement or offer-in-compromise, before levy or lien filing is considered.

(2) IRC 6320 gives taxpayers the right to request a hearing during the 30 calendar-day period that begins on the first day after five business days after the filing of a Notice of Federal Tax Lien (NFTL). Notice of this hearing must be given in person, left at the dwelling or usual place of business, or sent by certified mail to the last known address.

1. This notice is required only once for the taxable period and unpaid tax which is the subject of the lien filing. If an additional assessment of tax is made after the first lien is filed, a second lien may be filed and the Automated Lien System (ALS) will generate a second notice to the taxpayer.

2. For a joint income tax liability, each spouse will individually be sent the Letter 3172 explaining the right to a hearing. Two separately addressed notices are sent even if both spouses are at the same address.

Note: Refer to IRM 5.19.4.5, Notice of Federal Tax Lien Determinations and Filing Criteria, for more information.

(3) IRC 6330 gives taxpayers the right to request a hearing during the 30-day period after the date of the Notice of Intent to Levy and Right to Request a Hearing.

1. The notice will be given in person, left at the dwelling or usual place of business, or sent certified mail, (Registered mail is used when the taxpayer resides outside the United States because there is no international certified mail), to the taxpayer’s last known address not less than 30 days before the date of the first levy.

Exception: There are four exceptions to the pre-levy notice requirements: When the collection of tax is in jeopardy (this applies to field collection only); when a levy is served on a state to collect a Federal tax liability from a state income tax refund; Disqualified Employment Tax Levies; and Letter 1058-F, Post Levy Federal Contractor Collection Due Process. In these situations, the taxpayer will be given the opportunity for a hearing within a reasonable period of time after the levy.

2. This notice is required only once for the taxable period and unpaid tax which is the subject of the pre-levy notice or post-levy notice. A second notice may be required if an additional assessment of tax is made after the original notice was issued.

3. A second notice is required if levy action is planned to collect additional taxes that were assessed for the taxable period after the original notice was issued including additional failure to file or pay penalties assessed for the additional taxes.

   Note: An additional CDP notice is not required for new assessments of interest and penalty accruals for the tax and penalties previously included on a CDP notice.

4. For a joint income tax liability, each spouse will individually be sent, to their last known address, the notice explaining the right to a hearing. Two separately addressed notices are sent even if both spouses are at the same address.

(4) The following is a list of notices under IRC 6330:

(5) A hearing can be held by Appeals on a lien and a levy notice at the same time. This would happen if the taxpayer receives a subsequent notice after a hearing is requested on the first notice.

(6) The delivery and receipt of the levy notice is indicated on IDRS TXMODA with TC971 and unique action codes (AC):

• TC971 AC 069 – mailed

• TC971 AC 066 –The return receipt was signed (not necessarily by the taxpayer)

• TC971 AC 067 – refused/unclaimed

• TC971 AC 068 – returned undeliverable

Note: If the notice was issued by CFf, the action codes may have additional meanings. See IRM 5.11.1.3.3.3, Issuing Notice of Intent to Levy/Notice of a Right to a Hearing in Field Collection.

• TC971 action code 469 - indicates that no mail status (TC971 AC069, 066, 067, 068) has been received from the U.S. Postal Service (USPS) after 30 days. This is for information only and has no bearing on how you handle the case.

(7) The delivery and receipt of the lien notice is indicated on IDRS TXMODA with the following TC971 and action codes:

• TC971 AC 252 - Mailed

• TC971 AC 253 - Undelivered

• TC971 AC 254 - Unclaimed

• TC971 AC 255 - Refused

(8) Seven TC 971 action codes, 275 - 280, and 630 are used to reflect the status of a Collection Due Process (CDP) hearing request. Three of the action codes track timely CDP requests and three track equivalent hearing requests. These action codes are systemically input to IDRS as cases are added and updated to the CDP tracking system. It is important that the tracking system be kept timely and accurately updated. The definitions for the TC 971 action codes are as follows:

1. Action Code 275 indicates that a timely request for CDP hearing has been received. This action code, in addition to the input of a TC971 AC630, is also used to exclude a module(s) from selection by the Automated Levy Programs: State Income Tax Levy Program (SITLIP), Federal Payment Levy Program (FPLP), Alaska Permanent Fund Dividend Levy Program (AKPFD) and Municipal Tax Levy Program (MTLP). The TC 971 AC 275 will post to the account when a DP (Due Process) hearing request is entered on the CDP tracking system at Stage 1, Receipt of Hearing Request. The TC 971 will reflect the stage 1 date. The TC971 AC275 also excludes modules from the Passport Certification Program.

2. Action Code 276 indicates that a CDP issue was resolved in some manner by ACS or Field Collection, and the hearing request was withdrawn prior to Appeals without the case going to Appeals for resolution. This code reverses the 275 making the module eligible for selection by automated programs. The TC 971 AC 276 will post to the account when a DP hearing request is updated to Stage 12, Resolved Prior to Appeals Consideration, on the CDP tracking system. The TC 971 will reflect the stage 12 date.

3. Action Code 277 indicates that Appeals has completed their investigation and issued a determination letter. This code reverses the AC 275 making the module eligible for selection by automated levy programs. Appeals will input TC971 AC 277 as part of their closing actions.

4. Action Code 278 indicates receipt of an equivalent hearing (EH) request. The module(s) are not excluded from automated levy programs. The 278 will post to the account when an EH hearing request is entered on the CDP tracking system at stage 1, Receipt of Hearing Request. The 971 will reflect the stage 1 date.

5. Action Code 279 indicates that a request for an equivalent hearing has been resolved either by ACS or Field Collection and the case was not sent to Appeals. The TC 971 AC 279 will post to the account when a EH hearing request is updated to Stage 12, Resolved Prior to Appeals Consideration, on the CDP Tracking System. The 971 will reflect the Stage 12 date.

6. Action Code 280 indicates that Appeals has completed their review of the EH hearing investigation and issued a decision letter. Appeals will input TC971 AC 280 as part of their closing actions.

7. Action Code 630 when posted with a TC 971 action code 275 indicates the timely CDP hearing request involves a levy issue.

(1) ACS CDP cases are received and processed in the four ACS Support sites. The SBSE sites are Philadelphia and Cincinnati. The W&I sites are Kansas City and Fresno. Only CDP caseworkers in the four ACS Support sites have the authority to work the Form 12153, Request for Collection Due Process or Equivalent Hearing (CDP/EH) or its written equivalent. Any Forms 12153 or written equivalent received in Customer Account Services, ACS Call Site, Collection Operations, etc., must be forwarded within one business day of receipt in your operation/function to the appropriate ACS Support, CDP Unit. The appropriate site may be determined by accessing SERP, click the tab for Who / Where, ACS CDP Coordinators. The names, phone numbers and addresses of the CDP Coordinators along with the states that each CDP Unit covers can be obtained as well. If a Form 12153 is received at an incorrect CDP site, EEFax the form including all supporting documents and envelope, within one business day to the CDP Coordinator at the correct site. After EEFaxing, destroy the original hardcopy.

(2) Most CDP/EH requests are submitted by taxpayers in paper form. Once a request is received in the ACSS CDP Unit, it is converted to a paperless format by scanning the document using a copier multifunctional device (CMFD) into a pdf file. It is then processed in this electronic paperless format from this point. Instructions on how to use a CMFD are located on the intranet: IRS Source, under the Computers & Technology tab, IT4U, select printers and then scroll down to Canon CMFD Overview. The electronic platforms that the cases reside on while being processed in the CDP Units are different at each site. Obtain specific information from your local CDP Unit manager, CDP Coordinator or lead.

(3) Attempt to resolve the account or issue with the taxpayer without the need for a taxpayer to file a formal appeal. This may include manager intercession in discussions with the taxpayer. By law, taxpayers are not required to discuss their problem with a collection manager first; however, they should be encouraged to do so because their problem could be resolved without Appeals consideration. Taxpayers entitled to request an appeal under the CDP statutory provisions need to be advised of the requirements and time frames for filing an appeal. It is important to inform taxpayers that your discussions do not suspend the running of (or otherwise extend) the 30-day period during which taxpayers may request a CDP hearing.

(4) If the taxpayer wants to file a request for a Collection Due Process hearing:

1. It must be in writing.

2. If in response to a Notice of Intent to Levy and Notice of Your Right to a Hearing, it must be within 30 days of the date of the Notice.

3. If in response to the Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320, it must be filed within the 30 days beginning with the day after the five business day period after the filing of the NFTL, which is the date the NFTL is delivered to the recording office. On letter 3172 this is indicated as the MUST FILE BY date. See IRM 5.19.8.4.1(2), Notice of Collection Due Process (CDP) Appeal Rights, regarding how the "must file by" date is calculated.

4. It must be signed. See IRM 5.19.8.4.7.4, Signature Requirements.

5. If the hearing request is filed late, the taxpayer may be entitled to an equivalent hearing but only if specifically requested. See IRM 5.19.8.4.2.1, CDP Hearing Requests - Timeliness and IRM 5.19.8.4.3, Equivalent Hearing (EH) Requests and Timeliness of EH Requests.

(5) Advise the taxpayer to use Form 12153, Request for Collection Due Process or Equivalent Hearing, to request the appeal (Faxes are acceptable). If this form is not used, a written request (whether or not on Form 12153) signed and dated by the taxpayer or authorized representative is acceptable. A written request must include the following information:

• Taxpayer name(s), address, and daytime telephone number (if any).

• Taxpayer identification number (SSN, ITIN or EIN).

• The type of Tax.

• The tax period(s) at issue.

• A statement that the taxpayer requests a hearing concerning the proposed levy or in the case of post levy CDP requests, the actual levy action, or the filing of the Notice of Federal Tax Lien.

  Note: If the taxpayer did not submit a Form 12153, but it is evident that the taxpayer is requesting a CDP hearing, then the taxpayer has met the requirement.

• The reasons why the taxpayer disagrees with the action.

• The signature of the taxpayer or the taxpayer's authorized representative.

(6) If the tax liability involves a partnership, a request for a CDP hearing under IRC 6330 would cover all partners in the partnership. Under IRC 6320, the partnership and partners listed on the NFTL receive the CDP hearing notice. A partner with authority to represent the partnership could request a hearing for the partnership or a partner listed on the NFTL could request a CDP hearing as an individual partner.

(7) The taxpayer must mail the request for the CDP hearing to the address shown on the lien or levy notice. If the address of that office does not appear on the CDP notice, the taxpayer should obtain the address of the office to which the written request must be sent by calling the toll-free number on the notice or by calling toll-free 1-800-829-1040 and providing the taxpayer's identification number (TIN, EIN, or ITIN). If the taxpayer wishes to fax the CDP hearing request, the taxpayer may request the fax number of the appropriate office from one of these toll-free numbers.

(8) Ensure that an IRS received date is stamped or notated on the Form 12153, Request for Collection Due Process or Equivalent Hearing, taxpayers' correspondence, or any other documentation that is being used as the Appeals request and keep the envelope attached.

(9) Timely mailed constitutes timely filed if the taxpayer's request for a CDP hearing is correctly addressed to the IRS office listed in the CDP Hearing Notice. If the CDP hearing request is sent to another address on the CDP notice (even if it is not the correct office for submitting the CDP request), timeliness is determined based on the date the request is mailed. However, if the address does not appear on the notice, or if it is determined that the taxpayer received erroneous instructions from an IRS employee resulting in the request being sent to the wrong office, use the postmark date to that office to determine timeliness.

(10) If the taxpayer received both a lien and a levy notice, both actions may be appealed. The requests should be consolidated for the CDP hearing.

(11) The beginning of the 30-day period, the date of the notice, can be ascertained by looking at the notice, if attached to the Form 12153, at the date of the TC971 AC069, or from the Certified Mail Repository System (CMR).

(12) If the request for the appeal is filed after the IRC 6320/6330 notice period, the taxpayer may be entitled to receive an equivalent hearing. IRM 5.19.8.4.3, Equivalent Hearing Requests and Timeliness of Equivalent Hearing (EH) Requests.

(13) A request for a CDP hearing includes all periods entitled to a CDP hearing that are listed on the CDP hearing notice, unless the taxpayer explicitly states certain tax periods are excluded. In the case of untimely requests based on a POA copy listing tax periods not on the taxpayer's copy of the CDP notice, the taxpayer is deemed to have been given a CDP notice only for those tax periods listed on the properly delivered CDP notice.

(14) The hearing rights apply to all tax periods raised in the taxpayer's appeal that are subject to the CDP hearing. Taxpayers are asked to include a copy of the notice with the request. If a copy of the notice is included, the request is processed to include all taxes and periods listed on the notice.

(15) If the notice is not included and one of the boxes (lien/levy) is not checked, research IDRS (for the last year), to determine the appropriate taxes and periods to be included in the hearing request.

(16) If the taxpayer includes in the hearing request periods that are not listed on the notice, the taxpayer may be requesting an equivalent hearing for the other periods.

(17) If the taxpayer includes periods that are not timely for a CDP hearing, determine if the taxpayer is entitled to receive an equivalent hearing. If so, process the request as a request for an equivalent hearing provided the taxpayer has checked the equivalent hearing box (#7) on Form 12153. If it is not checked, see IRM 5.19.8.4.3, Equivalent Hearing (EH) Requests and Timeliness of EH Requests.

(18) If the taxpayer includes periods that previously received a CDP hearing, process the request as a request for an appeal under the retained jurisdiction provisions, if:

1. the requested hearing and prior hearing are both for the same type of collection action, and

2. it meets retained jurisdiction criteria. See IRM 5.19.8.4.15, Retained Jurisdiction Hearings.

(19) If a levy has been issued, and it is determined that the Notice of Intent to Levy was not properly mailed to the taxpayer's last known address, the Notice is invalid. Refer to IRM 5.19.8.4.4, Invalid CDP Notices and Rescinding a Notice of Intent to Levy and Notice of Your Right to a Hearing, for further guidance. If a levy was inadvertently made, release the levy . Proper notification under IRC 6330 is required prior to levy action.

(1) If the taxpayer did not timely request a CDP hearing with Appeals, the taxpayer may be entitled to an "equivalent hearing" with Appeals, but only if specifically requested. Late filed CDP requests will not automatically be processed as Equivalent Hearings.

(2) An equivalent hearing is equivalent to a CDP hearing in all ways except that there is no statute suspension, no retained jurisdiction, and the taxpayer does not have the right to seek judicial review of Appeals' decision at the conclusion of an equivalent hearing. Following an equivalent hearing the appeals officer sends the taxpayer a Decision letter explaining the results of the hearing.

(3) A taxpayer can request an equivalent hearing if the liability is still outstanding (unless the taxpayer did not agree to the offset or payment that full paid the account) and the taxpayer did not previously receive a CDP or an equivalent hearing for the same period. The taxpayer must submit a written request for an equivalent hearing within the one-year period beginning the day after the date of the CDP Levy Notice. For the CDP Lien Notice, the taxpayer must submit a written request for an equivalent hearing within the one-year period beginning the day after the end of the five-business-day period following the filing of the Notice of Federal Tax Lien (NFTL). If the request is received after the one-year period, notify the taxpayer of his/her rights under CAP and assistance from the Taxpayer Advocate Service.

(4) The taxpayer can request an equivalent hearing either by:

1. Checking the Equivalent Hearing box on Form 12153, Request for Collection Due Process or Equivalent Hearing, or other written request.

2. Confirming that they/she wants an untimely CDP hearing request to be treated as an equivalent hearing when notified by Collection of an untimely CDP hearing request.

(5) Late CDP hearing requests are not automatically treated as equivalent hearing requests. However, treat a late filed CDP hearing request as a request for an equivalent hearing if:

• The taxpayer has checked the Equivalent Hearing box on the Form 12153.

• Otherwise indicated in writing that the taxpayer wishes an equivalent hearing.

(6) For late filed CDP hearing requests where the taxpayer has not checked the box on Form 12153 or otherwise indicated in writing that the request is to be treated as a request for an equivalent hearing, notify the taxpayer either orally or in writing of the late filed request and advise the taxpayer of the right to request an equivalent hearing. Explain to the taxpayer that:

1. A CDP hearing and an equivalent hearing are substantially the same, but there is no judicial review of an equivalent hearing.

2. the taxpayer is entitled to challenge in the hearing Collections' determination that the request is untimely.

(7) If the taxpayer has requested an Equivalent Hearing using Form 12153 or submitted the request in writing, the request for the equivalent hearing should be stamped with a received date. Use the received date in the office listed on the CDP hearing notice to determine the timeliness of the equivalent hearing request. If the received date is after the one-year time frame for filing and equivalent hearing request but the request was postmarked timely, use the postmark date as the receipt date. IRM 5.19.8.4.7, Processing CDP and Equivalent Hearing Requests.

(8) If a taxpayer has elected to treat the CDP hearing as an equivalent hearing request, use the postmark date of the CDP hearing request as the date the request was submitted. If the taxpayer submitted a CDP hearing request within the one-year period and the taxpayer responded within the 15 calendar-day time period that the taxpayer wanted an equivalent hearing but the taxpayer's response was later than the one-year period, the request for equivalent hearing is timely.

(9) A taxpayer's request for an equivalent hearing can be submitted via EEfax or Document Upload Tool (DUT). The transmission date will be the received date. Retain the transmittal sheet along with the hearing request.

(10) When an equivalent hearing request is untimely (after the one-year time frame), the request must be sent to Appeals for a separate timeliness determination.

(1) Notice of Intent to Levy and Notice of Your Right to a Hearing is only to be issued when levy is the next planned action.

(2) If a CDP notice is invalid, a substitute notice must be issued in order for the taxpayer to be entitled to a hearing. Situations warranting the issuance of a substitute CDP notice because the CDP notice was invalid include when the taxpayer:

1. Did not receive the CDP notice because it was not sent to the taxpayers last known address (in which case the notice is invalid).

2. Is in bankruptcy and the automatic stay prohibits the issuance of collection notices and collection by levy (in which case the CDP levy notice is treated as void and invalid). The substitute CDP notice can be issued when the automatic stay is no longer in effect.

3. Did not receive a CDP notice because it was not sent individually to each joint filer. A notice may be valid as to one or both of the joint filer(s) if there is proof that person actually received the notice or that person timely requested a CDP hearing

4. Receives a notice that inadvertently includes an SRP liability (MFT 35).

IF	THEN
The taxpayer did not receive the CDP notice because it was not sent to the last known address.	Send letter 3790C, Invalid CDP Notice - Notice of Intent to Levy - No Withdrawal Required. Research for the correct last known address and issue the substitute notice. Follow steps in (5) below regarding input actions for invalid notices. Notate AMS.
The taxpayer is in bankruptcy and the automatic stay prohibits the issuance of collection notices and collection by levy.	Send letter 3790C, Invalid CDP Notice - Notice of Intent to Levy - No Withdrawal Required, Follow steps in (5) below, Notate AMS. Note: Corrective actions must be initiated within two work days of knowledge of the violation. See IRM 5.9.3.5.1, Violations of the Automatic Stay.
The taxpayer did not receive a CDP notice because it was not sent individually to each joint filer.	Issue the substitute notice to the individual taxpayer that did not receive a notice.
If a taxpayer makes a timely hearing request from a CDP levy notice that is invalid because it was: Not sent to the last known address or Not sent individually to a joint filer.	Treat the request as timely. By making a timely request, the taxpayer is deemed to have waived any defect in the issuance of the CDP notice. Note: A taxpayer is not entitled to a CDP hearing pursuant to a CDP levy notice issued in violation of the automatic stay. Note: Input address change as appropriate if the taxpayer's address has changed since the Last Known Address.

(3) The time period for requesting a hearing is suspended while the taxpayer is in any of the following situations plus 180 days (section 7508 status):

• In a combat zone.

• Part of a contingency operation away from the taxpayer's permanent duty station.

• Recuperating during a qualified hospitalization.

(4) If a taxpayer is entitled to relief under the Servicemembers Civil Relief Act of 2001, the request should be worked by Appeals in the CDP or Equivalent Hearing if the taxpayer requests a hearing.

(5) When a CDP levy notice is invalid, take the following action:

• Input Transaction Code (TC) 972, Action Code (AC) 069 to reverse each TC 971 that has already been input for the invalid notice. The input date for each TC 972 must be the same as the date for the TC 971 it is reversing.

(6) A valid CDP levy notice issued in error can be rescinded but only if:

1. The rescission is accomplished before the expiration of the time period in which the taxpayer may request a CDP hearing; and

2. The taxpayer has not requested a CDP hearing.

(7) You should rescind a valid CDP levy notice during the 30-day period for requesting a hearing before you receive a taxpayers hearing request if you learn that the notice was issued when the case is in a status in which levy action is prohibited. Rescission is not permitted once the 30-day period expires or the taxpayer makes a timely hearing request. Situations where levy action is prohibited after a valid CDP levy notice is sent include:

• During a pending offer-in-compromise.

• During a pending installment agreement request.

• When an installment agreement is in effect.

• During a pending innocent spouse request.

(8) Use Letter 3788C, Rescission Letter - Notice of Intent to Levy Issued Erroneously, to notify the taxpayer. The letter explains the Notice of Intent to Levy and Notice of Your Right to a Hearing is rescinded and as a result any CDP hearing request submitted after the date of the letter is disregarded. It also explains that the taxpayers CDP hearing rights are preserved.

(9) If you receive a properly addressed, timely hearing request after sending the letter 3788C, check the dates to see which was mailed first (check the postmark date on the request).

(10) If the taxpayer submits a hearing request in response to a valid CDP levy notice issued when levy is prohibited and the CDP notice has not been previously rescinded, the taxpayer is still entitled to a CDP hearing. Explain the error to the taxpayer. If the taxpayer no longer wants a hearing, the taxpayer must withdraw the request for a hearing. Refer to IRM 5.19.8.4.8, Withdrawal of a Request for a CDP Hearing or Equivalent Hearing Request. Explain to the taxpayer that if the hearing request is withdrawn, the proposed Offer-in-Compromise, installment agreement request, or innocent spouse claim will not be considered as part of the CDP process, and they will not get another opportunity for a CDP hearing.

(11) In situations where a valid CDP levy notice was previously issued, and a subsequent CDP levy notice is issued in error, the notice issued in error does not afford the taxpayer an additional opportunity to request a hearing. Timeliness of any hearing request is based on the date of the original CDP levy notice.

(12) If you encounter a case where it would seem inappropriate to rescind a CDP levy notice that was issued in error, notify management and Headquarters so they can help you make a case-specific decision.

(13) When a notice is rescinded, take the following actions:

1. Input a TC972 AC069 on the related module(s) to show the notice was rescinded.

2. Close an open IDRS control (C#,RSCNDLT11,C).

3. Input an IDRS history if no open IDRS controls (H,RSCNDLT11).

4. Input into AMS history (MCLT,,RSCNDLT11) along with comments, "Rescinded due to pending OIC, pending IA, etc. No withdrawal required.," along with any other pertinent information.

5. If Form 12153 or correspondence from the taxpayer was received, input a TC 290 with appropriate blocking to file it with the original return (See Document 6209, ADP and IDRS Information.

(1) Tax modules with liens are identified as follows:

• On IDRS, a TC 582 posts to each affected tax period when a Notice of Federal Tax Lien (NFTL) is filed through the Automated Lien System (ALS).

• On ACS, the entity screen displays literal LIEN if a NFTL has been filed on all ACS modules; an asterisk to the right of the LIEN means not all modules have a lien filed indicator. Check the tax module screen that displays the literal LIEN for each module on which a lien has been filed.

(2) If CDP lien notice is invalid, a substitute notice must be issued in order for the taxpayer to be entitled to a hearing. Situations warranting the issuance of a substitute CDP notice because the CDP notice was invalid include when the taxpayer:

1. Did not receive the CDP notice because it was not sent to the taxpayer's last known address (in which case the notice is invalid). If the taxpayer makes a timely request from the invalid notice, a substitute notice need not be issued.

2. Did not receive a CDP notice because it was not sent individually to each joint filer. A notice may be valid as to one or both of the joint filer(s) if there is proof that person actually received the notice or that person timely requested a CDP hearing. If the taxpayer makes a timely hearing request from the invalid notice, a substitute notice need not be issued.

IF	AND	THEN
The taxpayer did not receive the CDP lien notice because it was not sent to the last known address.	The taxpayer’s hearing request is received timely.	Treat the request as timely, process the case routinely, Input the correct address, Notate AMS.
The taxpayer did not receive the CDP lien notice because it was not sent to the last known address.	The taxpayer’s hearing request is not received timely.	Issue a substitute notice to the taxpayer at the correct address, Notate AMS.
The taxpayer did not receive a CDP lien notice because it was not sent individually to each joint filer.	The taxpayer’s hearing request is received timely.	Treat the request as timely, process the case routinely, Input the correct address for that joint taxpayer, Notate AMS.
The taxpayer did not receive a CDP lien notice because it was not sent individually to each joint filer.	The taxpayer’s hearing request is not received timely.	Issue a substitute notice to the taxpayer at the correct address, Notate AMS.
The taxpayer submits a hearing request based on a CDP lien notice that is invalid because it was: Not sent to the last known address or Not sent individually to a joint filer.	The taxpayer’s hearing request is received timely.	Treat the request as timely. By making a timely request, the taxpayer is deemed to have waived any defect in the issuance of the CDP notice. Note: Input address change as appropriate if the taxpayer's address has changed since the Last Known Address.

(3) The time period for requesting a hearing is suspended while the taxpayer is in any of the following situations plus 180 days (section 7508 status):

• In a combat zone.

• Part of a contingency operation away from the taxpayer's permanent duty station.

• Recuperating during a qualified hospitalization.

(4) In situations where a valid CDP lien notice was previously issued and a subsequent CDP lien notice is issued in error, the notice issued in error does not afford the taxpayer an additional opportunity to request a hearing. Timeliness of any hearing request is based on the date of filing of the NFTL.

(5) A valid CDP lien notice issued in error can be rescinded but only if:

1. Within the time period for requesting a CDP hearing the Service agrees either to withdraw the NFTL or release the federal tax lien;

   Note: The Notice of NFTL Withdrawal or Certificate of Release of the lien need not be filed within the time period for requesting a hearing.

2. The rescission is accomplished before the expiration of the time period in which the taxpayer may request a CDP hearing; and

3. The taxpayer has not requested a CDP hearing.

Note: The CDP lien notice is valid and the taxpayer is entitled to a hearing if requested even though the NFTL is ineffective, for example, because a recording office never receives the NFTL or because the NFTL was filed in violation of the bankruptcy automatic stay (see below).

(6) Refer to IRM 8.22.5.4.2.4.2, Corrective Actions on Improperly Issued CDP Notices and Notices Issued in Error, for procedures on how Appeals should address an ineffective NFTL in a CDP hearing. If a NFTL violated the automatic stay, contact Insolvency to have the NFTL withdrawn. See IRM 5.9.3.5.1, Violations of the Automatic Stay.

(7) Insolvency Groups are responsible for deciding if a lien notice may be rescinded when an NFTL filed in violation of the automatic stay is withdrawn. CEASO Groups are responsible for deciding if a CDP lien notice may be rescinded when a NFTL is withdrawn for any other reason, including because the taxpayer is in a combat zone. See IRM 5.12.9.6.6, Rescission of CDP Rights for Withdrawals, for rescission procedures. Insolvency or CEASO Group employees may contact you to find out if and when a taxpayer requested a hearing from a CDP lien notice.

(8) Contact the appropriate CEASO Group to request withdrawal of a NFTL filed while the taxpayer is in a combat zone, part of a contingency operation away from the taxpayers permanent duty station recuperating during a qualified hospitalization, or during the following 180 day period (section 7508 status).

(9) If you are aware of any extraordinary issues in the case that point to not withdrawing the NFTL, let management and Headquarters know so they can help you make a case specific decision.

(1) If the taxpayer files a timely appeal during the IRC 6330 notice period, levy actions, except in jeopardy situations, levies on state income tax refunds, Disqualified Employment Tax Levies (DETL), or Federal Contractor Collection Due Process, must be suspended during the appeal period and during any further appeals to Tax Court. Levy action also must be suspended during the period in which the taxpayer has a right to request a hearing under IRC 6320 or 6330.

(2) Levy action is only required to be suspended for the periods that are the subject of the CDP hearing for which a timely request has been filed.

(3) Levy action can continue on tax periods not subject to the CDP hearing, provided all pre-levy notifications have been met. Levy action is only suspended for periods subject to the CDP hearing. Levy action for non-CDP periods can be taken when appropriate, such as when the taxpayer continues to pyramid trust fund tax liabilities or otherwise puts collection at risk. When it is determined that levy action for non-CDP periods during the appeal is appropriate, contact Appeals to determine if they have any new information that could affect the decision to take enforcement action.

(4) A Notice of Federal Tax Lien (NFTL) may be filed for tax periods and taxes whether or not covered by the CDP notice issued under IRC 6330.

(5) When a taxpayer files a timely request for a CDP hearing during the IRC 6320 notice period, levy actions are not required to be suspended. However as a general rule, levy action is suspended pending the Appeals determination on the NFTL. Levy action can be taken if it is determined that collection is at risk such as when the taxpayer continues to pyramid trust fund tax liabilities. Prior to initiating levy action against tax modules that are the subject of a CDP hearing under IRC 6320, contact Appeals to advise them that levy action is planned. Determine if Appeals has new information that may affect the decision to levy. Managerial approval is required for levy under these circumstances.

(6) In joint liability situations, where only one spouse has requested a CDP hearing, levy action can continue with respect to the spouse who has not requested a CDP hearing. This may occur in situations where the spouses are separated or divorced. Otherwise, levy action will generally be suspended for both spouses. If the hearing request was intended to cover both taxpayers, the CDP hearing request can be amended to list both spouses. The spouse whose name is added should also sign the request for a CDP hearing.

(7) Levy action during an equivalent hearing is not required to be suspended. However, as a general rule, even when not required by statute, levy action is suspended during the Appeal period. Levy action can be taken if it is determined to be appropriate in the situation. Determine if Appeals has new information that may affect the decision to levy. Managerial approval is required for levy under these circumstances. Levy action may be appropriate if:

• Collection is at risk (CSED is within 2 years or less, the taxpayer is dissipating assets or pyramiding additional liabilities).

• The taxpayer raises only frivolous issues.

• The taxpayer is solely seeking to delay the collection process.

(8) Automated levies however, such as SITLP (State Income Tax Levy Program) or FPLP (Federal Payment Levy Program) are not suspended while the equivalent hearing is pending.

(9) Prior to initiating levy action against tax modules that are the subject of a CDP hearing under IRC 6320 or 6330, contact Appeals to advise them that levy action is planned. Determine if Appeals has new information that may affect the decision to levy. Managerial approval is required for levy under these circumstances. The levy action can be appealed under CAP while the equivalent hearing is in process on the notice periods. See IRM 5.19.8.4.16, Collection Appeals Program (CAP) Procedures. Note in the AMS Case History that collection is being pursued and the reason why.

(10) In a situation where a levy has been issued, and then the taxpayer files a hearing request, either for a timely CDP hearing under IRC 6320 or an equivalent hearing under IRC 6320 or 6330, determine if the levy should be released. See IRM 5.19.4.4.10, Levy Release: General Information.

(11) If a FPLP levy is to be released, the tax period must be blocked using TC 971 AC 061 in order to prevent the levy from being reissued. See IRM 5.19.9.4.7, FPLP Levy Release: General and IRM 5.19.9.4.2.4, Modules Systemically Blocked from FPLP.

(12) If it is determined that the notice under IRC 6330 and notice of intent to levy was not properly mailed to the taxpayer's last known address, release the levy and re-send the notice (Input TC972/069). Proper notification under IRC 6330 is required prior to levy action.

(13) If the levy is not released and the taxpayer indicates a need for a quick resolution, the taxpayer may request CAP or assistance from TAS.

(1) Form 12153, Request for Collection Due Process or Equivalent Hearing, or any written request for CDP or equivalent hearing received in the ACS Support/CDP Unit must be developed promptly and effectively to ensure that the taxpayers' due process rights are protected. Follow the instructions in IRM 5.19.8.4.7.5, Initial Actions, for all CDP/EH requests. CDP cases must be built and resolved with the taxpayer or forwarded to Appeals within 45 days of receipt in ACS Support.

(2) Quality and Timely Responses - To ensure adherence to IRM 21.3.3.3.4, Quality and Timely Responses, and IRM 5.19.1.2, Balance Due Overview, initial contact must be made with the taxpayer either by phone or letter within 30 days of the IRS received date. If the Form 12153 or any other written request is assigned in CDP later than 30 days from the IRS received date, then the initial contact, either by phone or letter, must be made within 5 workdays of assignment in CDP. The initial contact must give the taxpayer a contact name and phone number in CDP and an expected time frame for the next contact. A copy of the letter should be maintained in the case file. Document AMS to identify the type of inquiry, phone or letter, and the time frame provided to the taxpayer. When forwarding the case to Appeals, notify the taxpayer either by phone or by letter 4473C.

(3) You must multi-task all aspects of the process by taking all the following actions the same day: contact the taxpayer by phone or letter 3884C to acknowledge Form 12153 and request any additional necessary information, i.e., request return from files, order a Record of Accounts and update IDRS/AMS/CDPTS.

(4) Unauthorized 3rd Party - Do not disclose any information to an unauthorized third party. If corresponding with the taxpayer, enclose the form 2848 Power of Attorney and Declaration of Representative with correspondex letter 3884C. See IRM 21.1.3.2, General Disclosure Guidelines.

(5) AMS History- each action taken must be recorded on AMS in detail, with the date the action was taken, the action(s) taken, and the follow-up date. A clear history trail enables anyone that picks up your case to quickly identify what has been done on the case, and when it is time to take the next action.

(6) RO Assigned Cases - If a request is received on a case that is assigned to a revenue officer (RO), notify the RO of the request by documenting the ICS system (if you have access), by secure email or by efaxing the hearing request within one business day of your initial review of the case. If the RO has had contact with the taxpayer, the RO should contact the CDP Unit to have the hearing request sent to the RO for processing to Appeals. The same procedure applies if ACS issues a CDP levy or lien notice and the case is assigned to an RO by the time the CDP request has been received.

(1) A taxpayer that reaches a satisfactory resolution with Collection after filing a request for a CDP or equivalent hearing can withdraw their request. The decision to withdraw the request lies fully with the taxpayer. The date for a withdrawal is the date received by the Service.

(2) Form 12256, Withdrawal of Request for a Collection Due Process or Equivalent Hearing, is used to withdraw a request for a hearing on timely filed CDP cases only (Faxes are acceptable). Use the following procedures for requesting/securing Form 12256:

1. Make one phone call in an attempt to secure the withdrawal. Request the form be returned within 15 calendar days.

2. If no contact is made by phone, send letter Form 4474C with Form 12256 and a return envelope.

3. If the withdrawal is not received within 15 calendar days (21 days, if using a Correspondex letter), ACS Support will complete the case building process and forward the CDP case to Appeals.

4. Document on AMS the attempts to secure the withdrawal.

   Note: On joint liabilities, if both taxpayers signed the Form 12153, then both must sign the withdrawal (Form 12256).

(3) Some taxpayers may believe they need to file Form 12153 and full pay the liability at the same time, but do not agree with the balance owed. In other instances, credit offsets full pay the account, but the taxpayer does not agree with the liability that has been full paid by the offset. If a resolution is reached, request a withdrawal from the taxpayer.

(4) The taxpayer is not required to submit and sign a form to withdraw an equivalent hearing request. The taxpayer can verbally withdraw their equivalent hearing request. If the matter is resolved and the taxpayer does not want to go to Appeals, document the case history and take the necessary closing actions.

(5) If the taxpayer chooses to withdraw Form 12153 or other written CDP hearing request, inform the taxpayer of the following consequences and rights:

• The taxpayer gives up their rights for a CDP hearing.

• The taxpayer does not receive the issuance of an Appeals determination letter.

• Retained jurisdiction by appeals is not applicable.

• The taxpayer gives up their right to seek judicial review by the Tax Court.

• Suspension of levy action and statute of limitations for collection is no longer in effect.

• The taxpayer does not give up any other appeal rights such as an appeal under CAP.

• When an Equivalent Hearing request is withdrawn, a taxpayer may not request a second hearing on the same tax periods. However, CAP will be available.

(6) The suspension of the collection statute expiration date (CSED) ends on the receipt date of the withdrawal request.

(7) If a withdrawal is secured, do not forward the case to Appeals.

(8) If the CDP request was timely, input a TC520 per IRM 5.19.8.4.10, Suspension of the Collection Statute Expiration Date (CSED), and a TC521 using the IRS received date of the withdrawal to extend the CSED for the duration of the CDP request.

(9) Update AMS History with the date the withdrawal was secured (date received by the service), and all agreed to actions. Input the following in the ACS Notes area, ***CDP/WTHDRWNmmddyyyy LN or LV, MFT and tax period(s), e.g. 30/201512, 01/201603, 55/201706*** .

(10) Update the CDP Tracking System to stage 12. This action will document the withdrawal, generate the TC971 AC 276/279, and allow the case on CDPTS to archive.

(11) Close your IDRS control base and send Form 12153, Form 12256 and all documentation to files, using TC290 for .00 and appropriate blocking (see Document 6209, ADP and IDRS Information).

(12) If a withdrawal is received after the case has been sent to Appeals, send the withdrawal to Appeals.

(13) A taxpayer may withdraw their request for an equivalent hearing at any time before a hearing is commenced. Although a written request from the taxpayer is preferred, it is not required to be in writing. Document any requests for withdrawal of an equivalent hearing whenever the taxpayer does not provide a written request.

(1) Forward to Appeals a well-organized and fully documented case. It will serve as the basis for Appeals determination on whether the requirements of the Internal Revenue Code (IRC) and administrative procedures have been met. Paperless CDP/EH cases will be forwarded daily by uploading the pdf case file to the Appeals SharePoint site using the Electronic Case Receipts (ECR) page. The upload procedures are as follows:

(2) If a CDP/EH request includes so many documents or pages that scanning will result in a pdf file size that prevents its upload to ECR, the request will be processed and forwarded to Appeals in paper format. Paper cases must be shipped to The Independent Office of Appeals at the address indicated in the Appeals Case Routing Page. APS receives CDP cases, assigns them to Settlement Officers or Appeals Officers and tracks them while they are in Appeals. When an Appeals determination is made on the CDP case, or a decision is made on the equivalent hearing case, APS is responsible for initiating the actions to implement the determination. When the decision or determination involves collection action (levy/lien), APS will return the case to the ACSS CDP Unit for necessary action.

(3) Send letter 4473C or call the taxpayer to inform them that their case has been forwarded to Appeals.

(4) Maintain copies of CDP / EH paperless cases in ACS Support until a response regarding case determination is received from Appeals and the final actions are taken. If a paper case, maintain copies of the following documents:

• Form 12153

• Form 12153B

• Copy of envelope

• Copy of document indicating proof of received date

(5) Form 12153B, Referral Request for CDP Hearing from ACS Support, is designed to assist ACS Support users in preparing a case for referral to Appeals. It is used by Appeals personnel in their initial screening and processing actions of CDP cases and is required with all CDP/EH cases going to Appeals. Managerial review and approval is required.

(6) Information needed in the case file for Appeals:

• Forms 12153, 12153B, original returns, plus any correspondence or forms completed by the taxpayer.

• Copy of LT11, LT73, CP90/297, CP92 or CP77 if returned by the taxpayer. If not, request a copy from the taxpayer during your contact attempt. If not received within the timeframe you specified, obtain a copy of the notice from the Control-D system. If the notice cannot be located on Control-D, obtain a copy of the Certified Mail Listing from the Certified Mail Repository.

• Copy of Letter 3172, Notice of Federal Tax Lien, if returned by the taxpayer. If not, provide a copy from the Automated Lien System (ALS).

• Print of EFTAD if the request includes a Form 433D or the taxpayer has recently defaulted a DDIA or has proposed an IA collection alternative.

• Information on any levy that is still outstanding and what tax periods are involved.

Note: Document 11349, RRA Case File Tabs are no longer needed.

(7) Form 3210, Document Transmittal, must be included with paper cases to Appeals listing the following information:

• Last four digits of the Taxpayer(s) TIN.

• Taxpayer(s) Name control.

• MFTs and Tax Period(s).

• That the request is for a CDP or Equivalent Hearing.

(8) If the TC520 is needed, the manager must ensure it was input correctly. See IRM 5.19.8.4.10, Suspension of the Collection Statute Expiration Date (CSED).

(9) All Collection sourced CDP/EH cases to Appeals now go to the Holtsville APS. When the CDP or Equivalent Hearing case is forwarded to Appeals, re-assign its IDRS control base to the Holtsville Appeals Account and Processing Support (APS) site as follows:

• All cases to Appeals go to the Holtsville APS using entry code: 6619500001.

(10) Update CDPTS to Stage 3 (Transfer to Appeals).

(11) Notify the taxpayer that the case has been forwarded to Appeals by sending letter 4473C.

(12) Issue(s) raised by the taxpayer after the case has been forwarded will be addressed by Appeals, including obtaining any files pertaining to the taxpayer's appeal and any relevant information needed from the taxpayer.

(1) The statute of limitations is suspended from the date the Service receives a timely filed request for a CDP hearing to the date the taxpayer's withdrawal is received by the Service, the date the determination from Appeals becomes final, or if a timely appeal is made to the Tax Court, until the date the Tax Court decision becomes final. The CSED is suspended even if the account is full paid, as long as the taxpayer does not agree with the offset/payment that full paid the account.

1. The date the determination from Appeals becomes final is the date that the period within which the taxpayer could appeal to the Tax Court expires, if the taxpayer does not exercise his/her right to seek judicial review. A taxpayer generally has 30 days from the CDP notice of determination to appeal to the Tax Court, but has 90 days to appeal the spousal defense determination under IRC 6015 and 180 days to appeal the interest abatement determination under IRC 6404.

2. If the taxpayer timely commences the appeal process to the Tax Court, the date the Tax Court decision becomes final is upon expiration of the time for seeking review or reconsideration.

3. If 90 days is not remaining on the period of limitations when the determination becomes final, additional time is tacked on the period of limitations to allow for this 90 day period.

(2) Determine if the collection statute (CSED) needs to be suspended. The collection statute is suspended only when a taxpayer files a timely request for a CDP hearing. The taxpayer has one opportunity to request a CDP hearing for the taxable period and unpaid tax which is the subject of the lien filing or pre-levy notice. The CSED is not suspended on equivalent hearing cases.

• 941 for 12/31/2018—An equivalent hearing, no suspension of the collection statute.

• 941 for 03/31/2019—A CDP hearing, collection statute is suspended.

(3) When the CDP collection statute suspension occurs at the same time but differs from other applicable collection statute suspensions, e.g., those under the innocent spouse provisions of IRC 6015 or bankruptcy, the latest suspension period controls.

(4) Determining the TC520 date:

1. The TC520 date needs to reflect the beginning date of the statute suspension period, which is usually the IRS received date of the hearing request, unless this date is after the 30 days on a CDP request that is post marked timely.

2. If the 30th day is a Saturday, Sunday or federal holiday and the postmark is for the next business day after Saturday, Sunday or federal holiday, then use the date of the next business day after the Saturday, Sunday or federal holiday as the TC 520 date.

3. If the IRS received date is after the 30 days but the postmark date is on or before the 30 days, the TC 520 date should be the postmark date.

4. If the postmark date is illegible or the envelope is missing, subtract 3 days for regular mail and 7 days for overseas (unless you can document in the case file why another date was used), from the IRS received date and use this as your TC 520 date.

5. If the postmark date is illegible or the envelope is missing and there is no IRS received date, use the signature date as your TC 520 date.

Note: If the taxpayer did not mail the CDP request to the correct address for submitting the CDP notice, but sends it to another address that is displayed on the notice, the TC520 date is the date the request is mailed.

Note: A request that is hand-carried to a local Taxpayer Assistance Center (appointments are required for CDP requests) will be timely if delivered within the 30 day period during which taxpayers may request a hearing. See IRM 5.19.8.4.7.1.2, CDP Hearing Requests Hand Delivered to Taxpayer Assistance Centers (TAC).

(5) If the collection statute is to be suspended:

Note: Ensure that the case is on CDPTS before input of the TC520.

1. Input a TC 520 for each module subject to the collection statute suspension.

2. Use TC520 cc76 for lien CDP cases (also used when the lien and levy notices were issued together and the taxpayer files a hearing request on both).

3. Use TC520 cc77 for levy CDP cases.

Note: The TC 520 prevents levy by automated levy programs on timely filed requests and places the module in status 72.

(6) As of January 1, 2001 the CDP CSED is systemically calculated and updated based on the TC520 and TC521. Both the TC520 and the TC521 need to be input after 1/1/2001 for the systemic CSED update to occur. If 90 days is not remaining on the statute of limitations when the determination becomes final, the statute of limitations is extended to equal 90 days. The exception to the systemic update of the CSED are IMF accounts involving joint income tax liabilities where only one spouse has requested the hearing (e.g. divorced/separated taxpayers). For MFT 30 accounts, input the appropriate IMF CSED TIN indicator with the TC520. The indicators are as follows:

• "P": CSED suspended for the primary TIN spouse.

• "S": CSED suspended only for the secondary TIN spouse.

• "B": CSED suspended on both primary and secondary TINS.

(7) The systemic CSED calculation can be done on cases with the TC520 input before 1/1/2001 if:

1. A TC521 is input to close this pre 2001 TC520.

2. A new TC520 is input after 1/1/2001, using the original TC520 date.

3. A new TC521 is input after 1/1/2001 to close the post 2001 TC520.

(8) Consider mirroring the tax modules when needed to ensure each spouse’s independent CSED is tracked independently. For procedures on mirroring see: IRM 5.19.1.6.7 Mirroring Accounts, IRM 5.19.1.6.7.1 Front End Mirror Assessments Process for IA Closures and IRM 5.19.1.6.7.2 Back End Mirror Assessments Process for IA Closures.

(1) The hearing is held by the Office of Appeals. It is conducted by an officer or employee who has had no prior involvement with respect to the unpaid tax shown on the CDP notice. However, the taxpayer may waive this requirement. For an explanation of what constitutes prior involvement, see IRM 8.22.5.4.1 , No Prior Involvement.

(2) The taxpayer will be offered an opportunity for a hearing at the Appeals Office closest to the taxpayer's residence, their place of employment, or in case of a student, their school.

(3) To the extent practicable, a hearing under IRC 6320 shall be held in conjunction with a hearing under IRC 6330.

(4) The Appeals officer is required to obtain verification that the requirements of the Internal Revenue Code or administrative procedure have been met. Appeals will rely on the information in the case file or will seek clarification of items that appear to be incomplete within the case file.

(5) During the appeal process, the taxpayer may raise at the hearing any relevant issue relating to the unpaid tax or the proposed levy, including:

• Appropriate spousal defenses.

• Challenges to the appropriateness of Collection actions.

• Offers of collection alternatives, which may include the posting of a bond, the substitution of other assets, and Installment Agreement, or an Offer in Compromise.

(6) The taxpayer may also raise challenges to the existence or amount of the underlying tax liability for any tax period if the taxpayer did not receive any statutory notice of deficiency for such tax liability or did not otherwise have an opportunity to dispute such tax liability.

(7) An issue may not be raised at the hearing if:

• The issue was raised and considered at a previous hearing under IRC 6320 or in any other previous administrative or judicial proceeding; and

• The taxpayer seeking to raise the issue participated meaningfully in such hearing or proceeding.

(1) The Appeals determination will take into consideration the following:

• The verification that the requirements of the Internal Revenue Code or administrative procedure have been met,

• The issues being raised, including collection alternatives, and

• Whether any proposed Collection action balances the need for the efficient collection of taxes with the legitimate concern of the taxpayer that any Collection action be no more intrusive than necessary.

(2) Appeals Officers will operate quasi-judicially and will not direct, request or suggest any enforcement actions be taken. Appeals will not be involved in any investigative actions to assist Compliance in the development of its cases. This is to maintain Appeals independence and increase taxpayers confidence in Appeals impartiality and fairness.

(3) For a timely filed CDP hearing request, the taxpayer will receive a Notice of Determination letter that explains the taxpayer’s right to petition the Tax Court within 30 days of the date of the letter (within 90 days with respect to a spousal defense determination under IRC 6015 or within 180 days with respect to a interest abatement determination under IRC 6404.

(4) For an Equivalent Hearing, the taxpayer will receive a decision letter. In an Equivalent Hearing the decision by Appeals is final, except as it relates to certain spousal defenses under IRC 6015 (b), (c) or (f) if the taxpayer is challenging the timeliness of the CDP request.

(5) In both the Appeals Notice of Determination and decision letter, Appeals will provide clear information regarding any agreement reached with the taxpayer, any relief given, and any necessary actions required by ACS Support. If the tax liability is upheld or the enforcement action is valid, the letter will so state even if the Appeals officer decides to provide the taxpayer a different collection alternative. The letter will also set forth specific ramifications should the taxpayer not comply with the terms of the agreement.

(6) Appeals will generally follow the Service guidelines for Collection as set forth in the IRM. IRC 6330(c)(3)(C) requires the Service to balance tax collection needs with the legitimate concerns of the taxpayer that any Collection action be no more intrusive than necessary. Additionally, Appeals may take hazards of litigation into consideration when making its determination.

(1) In a CDP hearing case, Appeals Processing (APS) will suspend the case for 60 days after issuing the Notice of Determination to the taxpayer. If the taxpayer contacts us in response to the Notice of Determination, we can assist the taxpayer in carrying out the determination of Appeals, (i.e., Installment Agreement). However, no enforcement action can be taken until the determination is final. If no Tax Court petition is filed, the Notice of Determination is final. The suspension period will be longer if the CDP hearing included a spousal defense determination under IRC 6015 or an interest abatement determination under IRC 6404.

(2) In an equivalent hearing the decision is final when Appeals issues its decision letter except as it relates to certain spousal defenses under IRC 6015 or interest abatement claims under IRC 6404.

(3) Once the hearing is final, Appeals Processing Services (APS) will perform the following closing activities:

1. At least once a week APS will provide ACS Support (ACSS) via EEFax, a copy of Forms 5402 on all closures. Forms 5402, along with a Form 3210, will be provided back to the specific ACSS site from which the cases originated. ACSS will determine which 5402s sustain collection, and then will implement those actions.

   Note: If Forms 5402 are received at the wrong CDP site, forward them to the correct site via EEFax. Notify the APS site of the incorrect addressing.

2. Input TC 521 on all closures.

3. Input of all actions to carry out alternative resolutions.

4. Maintain an electronic copy of the case on ACDS.

(4) Appeals (APS) will input TC971 AC 277 if it is a CDP request or a TC971 AC 280 if it is an equivalent hearing request. These action codes indicate when the hearing request is closed in Appeals.

(1) Cases are worked and determinations are made by Appeals or Settlement Officers (AO/SO). The Appeals Account and Processing Support (APS) sites - Fresno APS, Memphis APS or Brookhaven APS are centralized operations responsible for taking the necessary actions (such as: installment agreements, Direct Debit Installment Agreements (DDIA), CNCs, and adjustments) to ensure the final determinations are implemented. Appeals determinations may also include actions to be taken by the ACS Support/CDP Units. This is referred to as the CDP "back-end" work. ACS Support / CDP must complete back-end work within 30 days of receipt.

(2) The campus Appeals Processing Services (APS) will send to the ACS Support CDP Units a copy of Forms 5402 on all cases with determinations requesting collection actions (lien/levy) be sustained and for determinations resulting in alternative resolutions. APS will take actions as follows:

• Alternative Resolution cases - APS will implement determinations that grant the alternative resolution (installment agreement, DDIA, CNC etc.). They will monitor the case to ensure actions have been posted, update the Appeals Centralized Data System (ACDS), close the IDRS control base and forward the closed hard copy case to files.

  Note: APS will forward a copy of the DDIA Form 433D along with the Form 5402 back-end case to ACSS.

• Collection Sustained cases - APS will update ACDS, close the IDRS control base and forward the hard copy case to Files. In order to input Appeal's determination to sustain collection, the account will be brought back onto ACS by APS (input of STAUP 2200 and TSIGN 0604 to transfer the case to ACS and into Function R9).

(3) APS will batch Forms 5402, prepare a Form 3210 and EFax them to the respective ACS Support CDP Coordinators at Fresno, Kansas City, Cincinnati, and Philadelphia, at least once each week.

(4) If there are any problems or questions, the CDP Coordinator should contact the APS manager for clarification or work together to resolve. Accept Appeals' determination and process the case as indicated on the listing unless:

• The system prevents input.

• The action would cause an unpostable.

• The action is clearly in violation of the law.

(5) APS is responsible for inputting all actions for the alternative resolution determinations with the following exceptions.

• Manually Monitored Installment Agreements (MMIA) - Centralized Case Processing (CCP) requires that requests for input of MMIA be made by the originating function. Therefore, Appeals will return any ACS request requiring an MMIA to ACSS for input. Appeals will indicate these requests on the Form 5402.

• In-business Trust Fund (IBTF) Installment Agreements - Appeals identifies these as MMIA. For IBTF IAs, excluding IBTF Express, involving corporate or LLC taxpayers, prepare Form 6238, Referral Report for Potential Trust Fund Recovery Penalty Cases, lines 1 - 3, and send to CEASO. CEASO will take action to have the trust fund recovery penalty (TFRP) addressed. Include a copy of the Form 6238 with the MMIA file sent to CCP.

  Note: Take necessary action on the IBTF IA even if Appeals did not identify it as an MMIA IBTF on the Form 5402.

(6) ACS Support will input all sustained collection actions. To continue with collection actions (sustained) determination, the account must be brought back onto ACS/AMS.

(7) For ACSS /CDP units, the Forms 5402 will indicate whether collection was sustained or not sustained. If collection is not sustained the Form 5204 will indicate the reason. If a case is in status 26 when it comes back, forward the 5402 and TSIGN the account (use zip code listing - RO Group Address and Phone Number found on SERP under the Who/Where tab), to the RO.

(8) Appeals does not make recommendations for the filing of a notice of lien on ACSS sourced CDP cases. Appeals may, however, make a recommendation that a notice of lien not be filed as a condition of an installment agreement.

• If Appeals determines a notice of lien will not be filed, Appeals will check the box on Form 433D, to indicate a lien may be filed if this agreement defaults. Forms 433D are not always forwarded to ACSS, so Appeals will also notate on the face of the Form 5402, if Appeals has determined that a notice of lien will not be filed as a condition of an installment agreement.

• Unless Appeals determines that a notice will not be filed as a condition of an installment agreement, Appeals will advise the taxpayer verbally or in writing on the Form 433D, that a lien may be filed by Collection when a collection alternative or CNC is determined.

• The ACSS-CDP Units will make the lien (NFTL) determination when the backend case is received, unless Appeals has determined a notice of lien will not be filed as a condition of an installment agreement. Based on the type of installment agreement (IA) granted, follow guidance in IRM 5.19.4.5.1, Notice of Tax Lien Filing Determinations, IRM 5.19.4.5.3.2, Filing Criteria, and IRM 5.19.4.6.1, How to File a NFTL. If Appeals indicates a Currently Not Collectible (CNC), make the lien determination per (5), IRM 5.16.1.2, Currently Not Collectible Procedures.

(9) APS IDRS actions for working CDP backend:

• If a case originated as a Federal Payment Levy Program (FPLP) case (not on ACS) and the determination is to continue collection action, reverse the TC 971 AC061 with a TC 972 AC061. This will remove the block and make the account eligible for a FPLP or Alaska Permanent Fund Dividend (AKPFD) levy. Leave the block in place however, if the case is being returned to ACS for further collection action.

• In order to input Appeals' determination to sustain collection action, the account will be brought back onto ACS by APS (input of STAUP 2200 and TSIGN 0604 to transfer the case to ACS and into Function R9).

• Monitor IDRS and the unpostables list to ensure actions post.

(10) ACSS-CDP Units ACS/AMS actions for working CDP backend:

• Control the cases on AMS to the employees assigned to working the backend cases within 7 days of receipt from APS.

• Monitor to ensure the case comes back onto ACS after input of TC521, STAUP 2200 and TSIGN 0604 to prevent any adverse actions.

• Take the sustained collection action, as indicated on the Form 5402.

• Initiate mirroring actions if requested on Form 5402. See IRM 5.19.1.6.7, Mirroring Accounts.

Note: Do not take sustained collection actions on IMF Large Dollar cases. Update AMS comments with the Appeals Determination/Decision and reassign the case to the next appropriate ACS function with a 1 day follow up. See IRM 5.19.4, Enforcement Action, for guidance on the next appropriate ACS function.

• Move to the next appropriate function with the appropriate follow-up days. See IRM 5.19.4, Enforcement Action.

• Update AMS comments of Appeals' determination and the collection actions taken. If these actions close the CDP, add to ACS notes sectionM: ***CDP/CLSD mm/dd/yyyy LN or LV, MFT and tax period(s) e.g. 30/201712, 2018, 01/201903, 201906, 55/201603, 201606, 201609,201612,***.

• Update AMS comments if the account will not or cannot be brought back onto ACS.

• Destroy file copy of Form 12153B and associated documents.

• Process all backend cases within 30 days of receipt of the Form 5402.

(11) ACSS-CDP Units will input the collection actions requested on the Forms 5402, monitor to ensure posting and close the control base. ACSS-CDP will update CDPTS to stage 14 (closed case received from Appeals). This will move the case to archive.

(12) If a case is returned from Appeals as a premature referral, attempt to contact the taxpayer/POA to assist in perfecting the case so it can be re-submitted to Appeals. Clearly document your actions on AMS.

(13) Occasionally a taxpayer will waive their rights to a CDP hearing as a condition of some other legal proceeding or part of the settlement of liabilities, however they may receive a CDP notice anyway in error. If the taxpayer responds to it by submitting a CDP request, Appeals will return this case to Collection as a "premature referral". Inform the taxpayer by phone or in writing that they will not receive a hearing because they previously waived their rights. Then close the case and document AMS.

(14) Report volumes and hours for CDP back-end processing to OFP 810-64410.

(1) Appeals retains jurisdiction on cases that are timely protested by taxpayers, i.e., CDP cases. In two circumstances, taxpayers may return to Appeals for a Retained Jurisdiction Hearing:

• Taxpayers may return to Appeals if they perceive that the collection function did not carry out Appeals' determination, as it was stated.

• Taxpayers may return to Appeals if there is a change in circumstances with respect to them, which affects Appeals' determination. However, they must first exhaust all administrative remedies, such as discussing the issue with the collection employee's manager.

(2) The only issues that will be considered in a retained jurisdiction hearing are those that pertain to the resolution of the CDP notice of determination.

(3) Taxpayers who wish to raise new issues or tax periods and types of tax that were not in the CDP Notice of Determination should be advised to do so in a CAP request.

(4) The statutory period for collection (CSED), is not suspended during the retained jurisdiction proceeding.

(5) Collection action will generally be administratively withheld, unless collection is at risk. If collection is determined to be at risk, notify Appeals immediately. When it is determined that collection action during the appeal is appropriate, the lien or levy action must be approved by the manager.

(6) For retained jurisdiction hearings, the CDP caseworker will make an initial attempt to contact the taxpayer.

1. If contact is made, try and resolve the issue with the taxpayer. If unable to reach a mutual resolution, then the taxpayer must have a conference with a CDP manager.

2. If contact is not made, then the CDP manager will make one contact attempt.

(7) The taxpayer must participate in a conference with the CDP manager in charge in retained jurisdiction cases in which the taxpayer alleges a change in circumstances. If the taxpayer cannot be contacted, or refuses to participate in the conference, the case will be returned to the taxpayer, explaining this requirement and advising the taxpayer of CAP rights.

(8) For retained jurisdiction cases in which the taxpayer alleges that Appeals' determination was not carried out correctly, try to have the taxpayer participate in a managerial conference. If however the taxpayer does not want to talk to a CDP manager, the case may be sent to Appeals without a conference.

(9) If the taxpayer and CDP manager reach an agreement during the conference, the case will be given to the CDP caseworker for completion. All documentation will be filed using TC290 for .00 with the appropriate blocking series.

(10) If the taxpayer and CDP manager do not reach an agreement during the conference, the case will be given to the CDP caseworker to be forwarded to Appeals and the taxpayer will be so advised.

(11) The case will be forwarded to Appeals on Form 3210 with an indication that the case is a Retained Jurisdiction case to differentiate it from a CDP or CAP case.

(12) The taxpayer will receive a letter upon completion of the review under the retained jurisdiction provision. The decision by Appeals is final with no further appeals to U.S. Tax Court. See IRM 8.20.5.12.1.1.1, Retained Jurisdiction. and IRM 8.22.9.18, Retained Jurisdiction (RJ) Hearings for more information.

(1) If a taxpayer is informed by an IRS employee or notice or letter that a lien, levy or seizure action has been or will be taken, or that an Installment Agreement (IA) is rejected, proposed for termination or terminated, or proposed for modification or modified, the taxpayer can appeal the action.

(2) In addition, if the taxpayer requests that a lien be withdrawn and the Service denies their request, this is appealable under CAP.