Federal Tax, Tax

Owe More Taxes Than You Can Pay? Request a CDP Hearing

Taxpayers that owe more taxes than they can currently pay can request a Collection Due Process (CDP) hearing, but cooperation with the IRS is key. One taxpayer timely filed a return but didn’t include income that was reported to the IRS by third parties. The IRS sent a notice of deficiency by certified mail to the address of record for additional taxes of $7,918. A CDP hearing by phone was requested and granted, but the taxpayer didn’t call in for the hearing. Notices of pending collection actions went unanswered. The taxpayer later claimed that the IRS had used the wrong address, though he had provided no updated address. The U.S. Tax Court allowed levy action to proceed. (TC Memo 2023-120). Learn more about Collection Due Process (CDP) hearings and how to request one from the IRS. Contact the Cg Team with questions. © 2023