The CDP appeal provisions give taxpayers an opportunity for an independent review by Appeals, to ensure that the proposed levy or 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.

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. 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. The lien notice will indicate the date this 30–day period expires. This notice is usually given by Letter 3172(DO), (Notice of Federal Tax Lien Filing and Your Right to A Hearing Under IRC 6320).

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.

The following is a list of notices under IRC 6330:

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.

Information regarding the delivery and receipt of the notice is displayed on IDRS TXMODA with TC971 and unique action codes:

Six TC 971 action codes, 275 - 280, 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:

ACS CDP cases are received and prepared 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 consolidated ACS Support sites have the authority to work the Form 12153, Request for Collection Due Process or Equivalent Hearing or its written equivalent. Any Forms 12153 or written equivalent received in Customer Account Services, ACS Call Site, Collection Operations, etc., must be immediately forwarded to the appropriate ACS Support, CDP Unit. The appropriate site may be determined by, getting on to SERP, click the tab for Who / Where , then ACS, then 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, fax the form the same day to the CDP Coordinator at the correct site and then mail the original to the correct site also. If there are too many for faxing, forward via express overnight mail.

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.

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

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 by the taxpayer or authorized representative is acceptable. A written request must be dated and include the following information:

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.

The taxpayer must file the request for the appeal with the office initiating the action (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.

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.

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 not addressed to the correct office as indicated in the CDP notice, the date to determine timeliness is the date the request is received by the IRS office to which the request should have been sent. 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.

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.

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 the entry from the Collection Due Process Certified Mail System (CDP-CMS).

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. See IRM 5.19.8.4.3, Equivalent Hearing Requests and Timeliness of Equivalent Hearing Requests.

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.

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.

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.

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.

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 (#6) on Form 12153. If box #6 is not checked, See IRM 5.19.8.4.3.

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:

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, rescind the notice. If a levy was inadvertently made, release the levy and rescind the notice. Proper notification under IRC 6330 is required prior to levy action.

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.

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.

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 hearingwithin 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.

The taxpayer can request an equivalent hearing either by:

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:

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 in 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:

If the taxpayer indicates either orally or in writing that the CDP request should be handled as an equivalent hearing request, process the CDP request as a request for an equivalent hearing. There is no need for the taxpayer to file a separate request for an equivalent hearing.

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. See IRM 5.19.8.4.7., Processing CDP and Equivalent Hearing Requests.

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.

A taxpayer's request for an equivalent hearing can be submitted via facsimile (FAX). The transmission date will be the received date. Retain the transmittal sheet along with the hearing request.

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.

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.

If a CDP notice is issued when levy action is prohibited, the CDP notice should be rescinded without requiring the taxpayer to file a withdrawal. Situations that warrant rescissions of the CDP levy notice include the following:

When an LT11 is issued in error, take the following actions:

Combat Zone Levy - If we are aware that a taxpayer was in a Combat Zone at the time the levy appeal was filed, or entered a combat zone after the appeal was filed, rescind the appropriate notice (i.e., LT11, CP90, etc.). Send Letter 3790C , Rescission Letter - Notice of Intent to Levy - No Withdrawal required.

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.

Tax modules with liens are identified as follows:

A Federal Tax Lien must be rescinded immediately in the following instances:

Send Letter 3789C, Rescission Letter - Notice of Federal Tax Lien Filing - No Withdrawal Required. Rescind the lien notice and take the proper actions for lien withdrawal (see IRM 5.19.4.6.4,Post - Lien Filing Calls and Lien Withdrawals).

If the lien was filed prior to the taxpayer's Combat Zone status, and the taxpayer has filed an appeal, those cases should be held until the taxpayer can conduct a hearing. If you have any of these that haven't gone to Appeals already, notify Appeals to ensure they will suspend these cases while awaiting for the taxpayer's availability for a hearing.

If Form 12153 or correspondence from the taxpayer has been received, input a TC 290 with appropriate blocking to file it with the original return. See Document 6209.

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

If the taxpayer files a timely appeal during the IRC 6320 / 6330 notice period, levy actions, except in jeopardy situations or levies on state income tax refunds, must be suspended during the appeal period and during any further appeals to Tax Court. Levy also must be suspended during the period in which the taxpayer has a right to request a hearing under IRC 6320 or 6330.

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.

Levy action can continue on tax periods not subject to the CDP hearing, provided all pre-levy notifications have been met. However, as a general rule, levy action is suspended, unless the levy contains periods that have already been subject to a CDP hearing, and in those instances, only release the levy on the period subject to the hearing. Levy action 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 during the appeal is appropriate, contact Appeals to determine if they have any new information that could affect the decision to take enforcement action.

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.

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 lien. Levy action can be taken if it is determined that collection is at risk. 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.

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.

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. Levy action may be appropriate if:

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.

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. 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 DI/ACS Case History that collection is being pursued and the reason why.

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 Releases: General Information.

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 5.19.9.3.6, FPLP Levy Release: General Information and IRM 5.19.9.3.2.3, Block / Unblock Actions.

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.

If the levy is not released and the taxpayer indicates a need for a quick resolution, the taxpayer may request CAP. See IRM 5.19.8.4.16.2., Exclusions From This Program. CAP is generally much quicker, or assistance from TAS instead of an equivalent hearing or IRC 6320 hearing. However, the taxpayer must withdraw his/her request for equivalent hearing. Similarly, the taxpayer must withdraw his/her request for IRC 6320 hearing.

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. The request must be assigned to a case worker and the actions as detailed under "Initial Actions" ( See IRM 5.19.8.4.7.5.) must be completed within 5 business days of receipt in the Unit. CDP cases must be built and forwarded to Appeals within 45 days of receipt in ACS Support.

Quality and Timely Responses - To ensure adherence to IRM 21.3.3.3.4, Quality and Timely Responses, initial contact must be made with the taxpayer either by phone or mail 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 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. If a copy of the letter is not maintained, or a telephone contact was made, then the time frame (date) given to the taxpayer must be documented on DI/ACS history and recorded on the case history sheet. When forwarding the case to Appeals, ensure that the taxpayer has been notified either by phone or in writing of the transfer.

You must multi-task all aspects of the process. An example of this would be that all the following actions would be taken on the same day (call taxpayer to acknowledge Form 12153 and request any additional information, request return from files, order a Record of Accounts, update IDRS/DI/ACS/CDPTS). If there are multiple tax periods, even though all must be controlled on IDRS, only one needs to be updated to reflect actions taken and follow-up dates. Some centers use cc:ACTONB and update all tax modules even though this is not a requirement of the IRM. When sending the case to Appeals however, all tax modules must be re-controlled according to See IRM 5.19.8.4.9., Forwarding Cases to Appeals.

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 and use correspondex letter 2935c. See IRM 21.1.3.2, General Disclosure Guidelines.

Case History- each action taken must be recorded on DI/ACS/Case History Sheet with the date the action was taken, the action taken, and the follow-up date. By leaving a clear history trail, anyone that picks up your case will be able to quickly identify what has been done on the case, and when it is time to take the next action.

If a request is received on a case assigned to revenue officer, the CDP units will document the ICS system notifying the RO of the request. If the RO has had contact with the taxpayer, the RO should contact the CDP unit and they will forward the request to the RO for processing to Appeals, otherwise the CDP unit will process the request. The same procedure applies is ACS issues a CDP levy notice or CDP lien notice and the case is assigned to a revenue officer by the time the CDP request has been received.

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

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:

Withdrawals are also required on full paid accounts. 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.

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.

If the taxpayer chooses to withdraw Form 12153 or other written CDP hearing request, the following occurs:

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

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

If the CDP request was timely, input a TC520 per IRM 5.19.8.6.10, 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.

Update the DI 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/WTHDRWNXXXXXX Ln or Lv and tax years(s), e.g. 95, 96, 97*** (where X's are the withdrawn date).

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

If a withdrawal is received after the case has been sent to Appeals, send the withdrawal to Appeals. Update the CDPTS to Stage 12 to reflect that a withdrawal has been secured.

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.

It is important to forward to Appeals a well-organized and fully documented case file of the contacts and actions taken. The case file will serve as the basis for Appeals determination on whether the requirements of the Internal Revenue Code (IRC) and administrative procedures have been met. Use Document 11349,RRA Case File Tabs, to properly organize your case file.

The Appeals Processing Services (APS) locations primarily assigned to handle CDP cases are the Memphis Campus APS and Fresno Campus APS. ACS Support CDP Units send CDP and EH cases to the APS as follows: Philadelphia and Kansas City ACSS's shall send their cases to the Memphis APS; the Cincinnati and Fresno ACSS's send their cases to the Fresno APS. 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 jurisdiction of the case to ACS Support for necessary action.

Copies of the following CDP or EH case documents will be maintained in ACS Support until a response regarding case determination is received from Appeals and the final actions are taken:

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 also helps Appeals personnel when performing the initial screening and processing actions of the received CDP cases and is required on all Forms 12153 going to Appeals. Managerial review and approval is required. The Form 12153B is available at: http://publish.no.irs.gov/forms/internal/pdf/31751C01.pdf

Information needed in the case file for Appeals (what to include):

Information needed on the Form 3210, Document Transmittal, for Appeals:

When the CDP or Equivalent Hearing case is forwarded to Appeals, re-assign its IDRS control base to the Memphis or Fresno Appeals Processing Services (APS) site as follows:

For any issue(s) raised by the taxpayer after the case has been forwarded to Appeals, Appeals will secure any files pertaining to the taxpayer's appeal and request any relevant information needed from the taxpayer.

If ACS Support has not heard back from Appeals after one year, follow-up if necessary by contacting the Appeals Account Resolution Specialists (AARS) at (559) 456-5931. The AARS handle inquiries for every type of case; open, unassigned, assigned, closed, and not yet in Appeals.

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 or the date the determination from Appeals becomes final, including any court appeals. 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.

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.

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.

Determining the TC520 date:

If the collection statute is to be suspended:

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:

The systemic CSED calculation can be done on cases with the TC520 input before1/1/2001 if:

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.

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.

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

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.

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

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

An issue may not be raised at the hearing if:

The Appeals determination will take into consideration the following:

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 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.

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.

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.

Appeals will generally follow the Service guidelines for Collection as set forth in the IRM. RRA 98 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.

In a CDP hearing case, the appeals officer 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 further appeals are 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 and an interest abatement determination under IRC 6404.

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.

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

Appeals (APS) will update cases on the CDPTS to stage 24, (Appeals Closing Actions Taken). When Appeals updates the CDPTS to stage 24, a TC 971 is systemically generated with action code 277 if it is a CDP request or action code 280 if it is an equivalent hearing. These action codes indicate when the hearing request is closed in Appeals.

Cases are worked and determinations are made by Appeals or Settlement Officers (AO/SO). The Campus Appeals Processing Services (APS) sites - Fresno APS or Memphis APS are centralized operations responsible for taking the necessary actions (such as: installment agreements, CNCs, and adjustments) to ensure the final determinations are implemented. Appeals determinations may also include actions 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.

The campus Appeals Processing Sites (APS) will take actions as follows:

APS will batch Forms 5402, prepare a Form 3210 and overnight express mail them to the respective ACS Support CDP Coordinators at Fresno, Cincinnati, Philadelphia, Kansas City at the close of business each Friday.

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:

APS is responsible for inputting all actions for the alternative resolution determinations. ACS Support will input all sustained collection actions. To continue with collections actions (sustained) determination, the account must be brought back onto ACS/DI.

For ACSS /CDP units, the Forms 5402 will indicate which cases require collection action and the specific collection action requested. 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.

APS IDRS actions for working CDP backend:

ACSS-CDP Units ACS/DI actions for working CDP backend:

APS will update the CDP Tracking System to stage 24 (closed).

Report volumes and hours for CDP backend processing to OFP 810-64410.

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:

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.

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.

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

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.

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

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.

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.

If the taxpayer and CDP manager reach an agreement during the conference, the case will be given to the CAP caseworker for completion. All documentation will be filed with the TC290.

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.

The case will be forwarded to Appeals on Form 3210 and indicate that the case is a Retained Jurisdiction case to differentiate it from a CDP or CAP case.

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 8.7.2, Special Collection Appeals Programs).

If a taxpayer is told by an IRS employee that a lien, levy or seizure action has been or will be taken, or that an Installment Agreement is rejected or terminated or proposed to terminated, the taxpayer can appeal the action.

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