Before the IRS can levy (garnish) your wages or bank accounts, and at the time the IRS files a Notice of Federal Tax Lien, you have the right to dispute these forms of collection action by filing a form with the IRS within 30 days of the date the IRS send you notice of its collection action. The IRS must send you a “collection due process” (CDP) notice before taking levy action, in order to provide you with an opportunity to propose “less intrusive” means for the IRS to attempt tax collection. It is very important to file this form with the appropriate IRS office because the IRS has been known to levy different types of bank accounts and wages immediately after the 30-day period.
This CDP procedure came about as a result of Congressional action in 1998, in response to taxpayer complaints that the IRS heavy-handedly (some would say oppressively) levied retirement, bank, Social Security, and business-operating accounts, without providing taxpayers enough opportunity to resolve their tax liabilities in a reasonable and equitable manner.
David A. Sprecace has more than 23 years of experience preparing this form and conferring with IRS Appeals Officers on behalf of clients in this situation. Call 303-454-8260 or email Dave at Dave@MyTaxLex.com to set up a phone consultation.