Your failure to pay the taxes due date can lead to serious circumstances. The Internal Revenue Service (or the IRS) takes into account different situations and does its best to prevent you from costly mistakes. You, as a decent taxpayer, must file your taxes (it is better to do it yourself than to wait for the IRS to do it on your behalf) and pay them. Otherwise, the more taxes are left unpaid, the more penalties the tax agency imposes on you. If you keep ignoring the IRS notices, you may face the situation when the tax agency decides to take other measures, like the seizure of the property or wage garnishment.
However, there is one way to avoid these situations — you can request for a Collection Due Process hearing (also known as CDP hearing) by submitting Form 12153. Under the Internal Revenue Code, Session 6320, you have the right to set up a reasonable payment plan before the IRS enforces the collection of a debt through a bank levy or other methods mentioned above. When the tax agency issues a final Notice of Intent to Levy (Form 1058) or the Federal Tax Lien (Letter 3172), they give you 30 days to request a CDP on the form under discussion.
When completing the form, you are to state the following basic information:
If you have any questions with regard to tax matters, feel free to give a law firm a call and get legal advice from a professional adviser. Besides, you can dial the number written in the notice and ask a tax agent questions about the form.
When dealing with any tax forms, it is always better to be on the safe side and make sure that all issues are clear to you. If the form is not completed correctly, you will be rejected before anyone evaluates the merits of your argument.
Apart from a CDP hearing, Form 12153 allows you to demand an Equivalent Hearing. If you fail to meet the deadline requirements for a CPD hearing, you still have a chance to request an alternative type of hearing. A one-year period from the date of receiving the Levy Notice is allowed to make your request. You have five additional days if you send the request after the date on a Lien Notice. Mind that an Equivalent Hearing does not give you the same relief as a CPD hearing does. If a CPD request puts the brakes on the IRS’s collection machine, in the case of an Equivalent Hearing, your debt is still likely to be pursued while you are waiting for the hearing.
You should file this form at the address from which you receive it. It is typically written on any of the notices you get. Another way of filing the form is via fax. Contact the Revenue Office to get the correct fax number (the number is usually written on the notice or the form itself).
Then, you will get a notice that the Appeals Office has received your request. The IRS will call a hearing date and request certain information. Finally, you will attend a hearing with an appeals officer where you can make your argument and ensure that they do not overstep their bounds. The final decision will come in the form of a written opinion. If you disagree with the settlement officer’s (who acts as a judge) opinion, your next step is likely to be the U.S. tax court.
What you need to do first is to obtain the relevant template. Usually, taxpayers get it directly from the IRS or its official website. We recommend making use of our advanced form building software to get the necessary form without leaving our website. Besides, our PDF editor allows you to check all the information for accuracy.
The paper contains four pages, only two of which you need to fill out. The IRS does not provide a separate book with instructions for the form. Instead, it provides all the necessary information inside the form. Take your time and read the last two pages to get a full understanding of the procedure.
Below, you will find a comprehensive guide on completing the form. Although the form has a lot of instructions, we advise you to follow it step by step to avoid any mistakes that may lead to rejection or other confusing situations.
Enter the Taxpayer’s Personal Details
After you have read the instructions at the beginning of the document, you can proceed to the first part: add your full legal name, Taxpayer Identification Number (or TIN), and physical (current mailing) address, including the state city and a ZIP code.
Leave contact details and specify the time that is most convenient for you to receive phone calls. You can include home, work, and cell numbers.
Add Personal Data for Taxpayer 2
In this section, you are required to include basic information about the second taxpayer (if there is any). The list of details comprises the same items as the first part of the form: the name, address, phone numbers, best time to call. Mind that you do not need to write the address if it is not different from the address in the first part.
Provide Tax Information
Here, you, as a taxpayer, must include details with regard to your taxes: state whether it is an individual income tax or any other type of tax (the left column), indicate tax form number (the column in the middle), and specify the tax period(s) (the right column).
Specify the Ground for Your Request
As we have mentioned above, before the IRS actually seizes your assets, you will get a series of certified letters of two types: the Federal Tax Lien Notice and Levy Notice. In this document part, you can state what letter you consider as a basis for your request. If you have received both types, you can check all the boxes provided.
Request for Equivalent Hearing
Here, you need to check the box only if you have failed to file the form due date for a CPD hearing. Please, read the instructions provided on the last page of the form to get more details.
State the Reason for Your Request
In this section, you need to explain why the IRS does not need to enforce the collection of a debt or to put a lien. If you can suggest alternative ways of dealing with the debt, choose them among the boxes.
There are two alternatives for collection actions:
If you cannot pay your taxes due to the following reasons, check the third box (“I Cannot Pay Balance”):
If you want to offer other methods of dealing with the lien against your property, you can do it in this section of the document. You are provided with three options:
Keep in mind that you have to write the reason for your request. For example, you are allowed to withdraw the lien if you have agreed to an Installment Agreement method of debt paying.
If you think that your spouse (either former or current one) should be liable for the debt, you can check the box to claim that you are an innocent spouse. In this case, send Form 8857 along with Form 12153.
The large blank section below is meant to state the legal reason to request a CPD hearing. For example, if you have paid your debt in full or part of your taxes, indicate it here.
Sign the Form
Before signing the form, double-check the information you have provided and read the statement in the signature section. Finally, put your signature and the current calendar date. The second taxpayer is to do the same if it is a joint request you are filing.
If you appoint a representative to attend a CPD hearing with you, they also need to validate the form with their signature. Don’t forget to include the representative’s name and phone number.