Usually, yes.
The IRS has two main ways to appeal a lien or a levy. One is called Collection Due Process, or CDP. The other is the Collection Appeals Program, or CAP. IRS Publication 1660, Collection Appeal Rights.
Which one you can use depends on the notice in your hands. So does how long you have. That is where to start.
If you are not sure what you have, book a free call. We read the notice with you and find the date on it. It does not commit you to anything.
What this page covers
This page is about appealing a federal tax lien or levy before it happens, or soon after.
- If the IRS is already taking money from your pay, see The IRS is taking money from my paycheck. What can I do?
- If a lien is in the way of a sale or a refinance, see The IRS filed a lien on my home. What now?
- If you think you do not owe the tax at all, see I do not think I owe this. What can I do?
- If you disagree with an audit, see I disagree with my audit. Can I appeal before the bill is final?
Lien or levy: what is the difference?
A lien is a legal claim against your property. A levy is different. It actually takes your property, or your rights to property, such as your wages or your bank account. IRS Publication 594, The IRS Collection Process.
The lien itself arises by law when you do not pay your first bill. What the IRS files later is a Notice of Federal Tax Lien. That notice tells your other creditors that the IRS has a claim. IRS Publication 594.
Which notice do you have?
A notice that says the IRS intends to levy
Notice CP504 is one of these. The IRS says it cannot levy with just this notice. It must first send a formal Notice of Intent to Levy and Your Right to a Hearing. IRS: Collection due process FAQs.
You do not need to wait for that final notice. The IRS says it is in your best interest to respond to a CP504. Call the number on it to talk about your situation and your payment options. IRS: Collection due process FAQs.
For our clients, the first thing we do is pull their IRS account transcripts. That shows what the IRS says is owed, and for which years, before anyone picks up the phone.
A final notice of intent to levy
Its full name is Final Notice, Notice of Intent to Levy and Notice of Your Right to a Hearing. IRS Publication 1660. The IRS also names two letter numbers for it, LT11 and L-1058. IRS: Collection due process FAQs.
For each tax and period, the IRS must send a notice the first time it levies, or intends to levy. IRS Publication 1660. By law, the IRS must give it to you, leave it at your home or business, or mail it at least 30 days before the first levy. 26 U.S. Code § 6330. There are four exceptions. In these, you can ask for a hearing after the levy instead. IRS Publication 1660.
- The IRS believes collecting the tax is in jeopardy
- The IRS levies your state tax refund
- The levy meets the rules for a Disqualified Employment Tax Levy
- The IRS serves a federal contractor levy
A Disqualified Employment Tax Levy is a levy for unpaid employment taxes. It can be used when the taxpayer already asked for a CDP hearing on employment taxes from the 2 years before the period being levied. 26 U.S. Code § 6330. IRS Publication 594.
You have 30 days from the date of the notice to ask for a CDP hearing. IRS Publication 1660.
If one of these has arrived, book a free call. The first thing we do on the call is find the date on the notice and count the 30 days from it with you.
A notice that a lien has been filed
This one is called a Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320. IRS Publication 1660. The IRS also calls it Letter 3172. IRS: Collection due process FAQs.
Notice the order. This letter comes after the lien notice has been filed, not before.
- The first time the IRS files a lien notice for a tax and period, it must notify you within 5 business days
- You then have 30 days, after that 5-day period, to ask for a hearing
- The letter shows the date your 30 days run out
IRS Publication 1660. 26 U.S. Code § 6320.
For our clients, we pull the lien record and match it to their IRS account. That way we know which tax years and amounts it covers before any hearing request goes in.
A revenue officer says a lien or a levy is coming
You do not have to wait for it. The Collection Appeals Program can be used before or after the IRS files a Notice of Federal Tax Lien. It can also be used before or after the IRS levies or seizes your property. IRS Publication 1660. How to start one is further down this page.
If a revenue officer has told you something is coming, book a free call. We go through with you what can still be raised before it happens.
Door one: a Collection Due Process hearing
You get one CDP lien hearing and one CDP levy hearing for each tax period or assessment. IRS Publication 1660. IRS Publication 594. A new notice for the same period can still offer a hearing, for example after the IRS assesses more tax for it. Go by what your notice says. IRM 8.22.4.2.2. CAP can still cover a lien at each new filing, and a levy before or after it happens. IRS Publication 1660.
How to ask for one
- Use IRS Form 12153, or a written request with the same information. IRS Publication 1660
- Send it to the address for requesting a hearing on your notice. That is not the payment address. Include a copy of the notice. IRS Form 12153
- Give your reasons. The form says your request will not be honored without a reason for the dispute. IRS Form 12153, item 8
- Keep a copy of your request, and proof of the date you sent it. IRS Form 12153
The deadline is a postmark deadline. For a lien notice, your request must be postmarked on or before the date shown in the notice. For a levy notice, it is on or before the 30th day after the date of the notice. IRS Publication 1660.
You can call the number on the notice first and try to sort it out. But that call does not extend the 30 days to send a written request. IRS Publication 1660.
What you can raise at the hearing
The IRS lists these. IRS Publication 1660.
- A collection alternative, such as an installment agreement or an offer in compromise
- Subordination or discharge of the lien
- Withdrawal of the Notice of Federal Tax Lien
- Appropriate spousal defenses
- That collecting the tax is causing, or will cause, an economic or other hardship
- Whether you owe the tax, or how much
That last one has a condition. You can raise it only if you did not get a notice of deficiency, or did not otherwise have a chance to dispute the tax. IRS Publication 1660.
There are limits too. IRS Publication 1660.
- You may not raise an issue that was already raised and considered at an earlier hearing or court case, if you or your representative took a meaningful part in it
- You may not challenge the existence or amount of an assessment based on court-ordered restitution
- In general, the IRS will deny a request that raises only issues it has identified as frivolous, or that is made only to delay or impede collection
Our clients tell us what has happened and what they can pay. With their authorization, we prepare the hearing request, set out every reason, and send it to the hearing address on the notice.
What an on-time request gets you
These apply when you ask on time for a CDP hearing that your notice offers you.
A pause on levy, with exceptions. After a levy notice, levy is not allowed for those taxes and periods during the 30 days. It stays that way during a timely CDP hearing. The same four exceptions apply. IRS Publication 1660.
A lien hearing is softer on this. Normally there is no levy while you can ask for a lien hearing, or while that hearing runs. IRS Publication 1660. But the IRS says it is permitted to levy during a hearing about a lien filing. It says it normally will not. IRS Publication 594.
A route to court. If you disagree with the Appeals decision, you can ask the U.S. Tax Court to review it. You must do it within the time given in the Appeals determination letter. IRS Publication 1660. The law sets that at 30 days from the determination. 26 U.S. Code § 6330.
So raise everything at the hearing. You may not be able to raise a new issue in the Tax Court. The court may also limit the evidence to what you gave Appeals. IRS Publication 1660.
Three more things to know before you file.
- The collection clock pauses. The IRS has 10 years to collect. A timely request suspends that period until the Appeals decision is final, or until you withdraw in writing. IRS Publication 1660
- The pause is added on. If the period is suspended for six months, the IRS gets six more months to collect. IRS Form 12153, Important Things to Know
- A levy hearing does not block a lien. A request for a CDP levy hearing, timely or late, does not stop the IRS filing a Notice of Federal Tax Lien. IRS Form 12153, Important Things to Know
If your date has not passed yet, book a free call. We look at your notice with you and go over what an on-time request would cover in your case.
If you cannot pay it all at once
You can use the hearing to propose a payment plan or an offer. IRS Publication 1660. If you cannot pay right now, Appeals may consider freezing collection until things improve. Interest and penalties still build up while it does. IRS Form 12153.
If you ask for one of these, the form says to prepare a financial statement, unless an exception applies. That is Form 433-A for individuals, or Form 433-B for businesses. IRS Form 12153, item 9.
- You do not have to send it with your request. Sending it early helps you get the quickest resolution
- You need no statement for an installment agreement you can get automatically online
- You need no statement for an offer in compromise based on doubt as to liability
Those statements are long. Our clients give us their pay stubs, bills and bank statements. We build the financial statement and put the payment proposal to Appeals for them.
If the 30 days have passed
If your CDP request is late, the IRS says your right to a CDP or equivalent hearing may still be kept in one narrow case. You must show you were diligent, and that the reason you were late was extraordinary and beyond your control. IRS Publication 594. It is not extra time, so plan on the date in your notice.
Otherwise, you can still ask for an equivalent hearing. It is the same as a CDP hearing, with three differences. IRS Form 12153, Important Things to Know.
- The law does not stop levy while it runs
- The 10-year collection period is not suspended
- You cannot go to court if you disagree with the decision
There is still a time limit.
- After a lien notice: one year plus five business days from the date the lien was filed. That may not be the same as the date on your letter
- After a levy notice: one year from the date of the levy notice
IRS Form 12153, Important Things to Know.
You have to ask for it. On Form 12153, tick the equivalent hearing box in item 2. IRS Form 12153. If you write a letter instead of using the form, say that you want an equivalent hearing if your CDP request is late. IRS Publication 1660.
If your date has passed, book a free call. We check the one-year window with you. If it has closed, we would rather tell you that on day one.
Door two: the Collection Appeals Program
CAP covers more collection actions than CDP does. These are the lien and levy ones. IRS Publication 1660.
- A Notice of Federal Tax Lien that is proposed, or already filed. This applies at the first filing and each one after
- A refused request to withdraw a lien notice, or a refused discharge, subordination or non-attachment
- A levy on your wages, bank account or other property, before or after it happens
- A seizure, before or after it happens, but before the property is sold
CAP also covers installment agreements. That includes a rejected one, and one the IRS changes or ends, or plans to. IRS Publication 1660.
Installment agreements have their own steps and time limits. IRS Publication 1660.
- A rejected agreement: appeal on or before the 30th day after the date of the rejection letter
- A planned termination: appeal within 30 days from the date of the notice of intent to terminate. Otherwise the agreement ends, unless you cure the default
- After it ends: your right to appeal continues for 30 more days. But if you appealed before it ended, you cannot appeal again once the termination takes effect
- A change to the agreement: follows the same steps as a termination
- No manager conference is required first, though the IRS recommends one
The IRS says CAP generally gets a quicker Appeals decision. It also has two hard limits. IRS Publication 1660.
- You cannot argue in CAP that you do not owe the tax, or that the amount is wrong
- You cannot go to court if you disagree with the CAP decision
While Appeals looks at a lien, levy or seizure case, the IRS normally takes no action to collect for those periods. There are two exceptions. One is where the IRS believes collection is at risk. The other is a business that meets the rules for a Disqualified Employment Tax Levy. IRS Publication 1660.
The steps below are for liens, levies and seizures.
Lien or levy: if your only contact has been a notice or a phone call
- Call the number on your notice. Be ready to say which action you disagree with and why. You must also offer a solution.
- If you cannot agree, say you want to appeal. The employee must refer you to a manager. The manager will talk to you then, or call back within 24 hours.
- Tell the manager which action you disagree with and why. If you disagree with the manager’s decision, your case goes to Appeals. You do not have to put the appeal in writing.
Lien, levy or seizure: if a revenue officer is involved
First, ask for a conference with the Collection manager. If that does not settle it, the clocks are short. IRS Form 9423 instructions.
- Within 2 business days after that conference, tell Collection you want to appeal under CAP. If you do not, the IRS says it will resume collection. IRS Publication 1660
- Within 3 business days of the conference, Form 9423 must be received or postmarked. If it is not, collection may resume. IRS Form 9423 instructions
- On the form, tick the action you disagree with and say why. You must also say how you would resolve the problem. IRS Form 9423 instructions
- Send it to the Collection office involved in the lien, levy or seizure. Not to Appeals. IRS Form 9423 instructions
What if you ask for a conference and nobody calls back?
- If no manager contacts you within 2 business days of asking, you can contact Collection again, or file Form 9423 anyway
- In Block 15, write the date you asked for the conference. Say that no manager contacted you
- The form should be received or postmarked within 4 business days of your request for a conference. Collection may resume after that
After a seizure, the clock is different. You must appeal to the Collection manager within 10 business days after the Notice of Seizure is given to you, or left at your home or business. IRS Publication 1660.
When a lien, levy or seizure is only proposed, there is no set deadline to ask for the manager conference. The same is true once a levy is served on property such as wages or a bank account. But the IRS says collection may go ahead if you do not ask within a reasonable time. IRS Publication 594.
Two and three business days go fast. For our clients, with their authorization, we take over the calls with Collection, ask for the manager conference, and prepare Form 9423.
Which door, if both are open?
The IRS says some actions qualify for CAP, and some for CDP. The two programs offer different advantages, depending on your facts. Taking part in one type of hearing could stop certain issues being heard in a second one. IRS: Collection due process FAQs.
Here is how they line up, from the sources above.
- Timing. A CDP lien hearing comes after the lien notice is filed. CAP can be used before the filing
- Court. A timely CDP hearing can go to the Tax Court. CAP cannot
- What you owe. CDP lets you dispute the amount in limited cases. CAP never does
- Reach. CAP covers more actions, and the IRS says it is generally quicker
So the choice is worth making on purpose. If both doors are open to you, book a free call. We lay out with you what each one keeps and what it gives up for your notice.
Who can speak for you
You can represent yourself at CDP, CAP and other Appeals hearings. You can also be represented by an attorney, a certified public accountant, or a person enrolled to practice before the IRS, such as an enrolled agent. IRS Publication 1660.
- A member of your immediate family can represent you
- For a business, so can regular full-time employees, general partners or bona fide officers
- A Low Income Taxpayer Clinic may represent you if you qualify. Clinics are independent of the IRS. Most represent people in tax collection disputes and other issues, for free or for a small fee
If you want your representative to deal with the IRS without you there, the IRS needs a completed Form 2848. IRS Publication 1660.
The Taxpayer Advocate Service helps people in three situations. IRS Publication 1660.
- Your problem with the IRS is causing financial difficulty
- You have tried to resolve it with the IRS and have not been able to
- You believe an IRS system or procedure is not working as it should
But it cannot extend the time you have to ask for a CDP, equivalent or CAP hearing. IRS Publication 1660.
On our team, Abby Fernandez, JD, is an attorney admitted to the Ohio Bar and the U.S. Tax Court. With our clients’ authorization, we represent them before the IRS and at Appeals. The same small team stays on the case from the first call to the last.
What to gather
- The notice, with the date printed on it
- Every other IRS letter, in date order
- The name and number of anyone at the IRS you have spoken to, and when
- Any earlier letter that gave you a chance to dispute the amount, such as a notice of deficiency
- Your pay, bank and household bills, if you want to propose a payment plan or an offer
Book a free call and bring what you have. We line it up with you against the dates on the notice.
Where this leaves you
You can usually appeal a lien or a levy. Start with the notice. A final notice of intent to levy, or a lien filing notice, that offers you a hearing opens a CDP hearing. You get one of each for each tax period or assessment, and the date on the notice matters most. CAP can be used before a lien is filed or a levy is made, and after. It cannot hear whether you owe the tax, and it cannot go to court.
If you want a second pair of eyes on the notice, IRS Help offers a free 30-minute consultation. Bring the notice. There is no pressure, and we read your IRS records before anyone commits to anything. You can reach us through the contact page.
This article is general information about federal tax procedure. It is not legal or tax advice about your situation. Your rights and deadlines depend on the notice you received and your own facts.
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