Understanding IRS Form 12153: Request for a Collection Due Process or Equivalent Hearing

Taxpayers who receive notices from the IRS regarding enforced collection actions such as liens or levies may feel overwhelmed and unsure of how to respond. Fortunately, the IRS provides a formal avenue for individuals to challenge or appeal these actions through IRS Form 12153, Request for a Collection Due Process or Equivalent Hearing. Understanding the purpose of this form, when it should be used, and the available options can help taxpayers protect their rights and make informed decisions.

What Is IRS Form 12153?

IRS Form 12153 allows taxpayers to formally request a Collection Due Process (CDP) hearing or, if the deadline has passed, an equivalent hearing with the IRS Independent Office of Appeals. This process gives taxpayers an opportunity to resolve collection issues before the IRS proceeds with enforced actions such as garnishments, levies, or property seizures.

The form is typically used in response to one of the following IRS notices:

• Notice of Federal Tax Lien Filing (Letter 3172)
• Final Notice – Notice of Intent to Levy (Letter 1058 or LT11)
• Notice of Jeopardy Levy or Levy on a State Tax Refund

When and How to Use Form 12153

Form 12153 must be submitted within 30 days of receiving a Final Notice of Intent to Levy or Notice of Federal Tax Lien to qualify for a Collection Due Process hearing. If the form is submitted after this 30-day period but within one year, the taxpayer may still request an equivalent hearing, although certain appeal rights—such as the ability to seek judicial review—will not apply.

When completing Form 12153, taxpayers must indicate the reason(s) for the hearing request, such as:

• Not liable for the tax the IRS is trying to collect
• Claiming innocent spouse relief
• Taxes were discharged in bankruptcy
• Requesting the Notice of Federal Tax Lien to be withdrawn
• Financial hardship
• Proposing a collection alternative

Taxpayers should include documentation supporting their request and clearly state their preferred resolution method.

Collection Due Process Hearing vs. Equivalent Hearing

• Collection Due Process (CDP) Hearing: Conducted by the IRS Independent Office of Appeals, this hearing occurs after timely filing within 30 days of the notice. Taxpayers maintain the right to appeal the decision in Tax Court if they disagree with the outcome.
• Equivalent Hearing: If the request is submitted after 30 days but within one year of the notice, the taxpayer may still receive a hearing with Appeals. However, the taxpayer forfeits the right to petition the Tax Court for review of the decision.

How an Enrolled Agent from Books, Taxes & More Can Help

Responding to IRS collection notices with Form 12153 requires careful attention to detail, appropriate timing, and a clear understanding of taxpayer rights and IRS procedures. Steve Perry, Enrolled Agent (EA) is a federally licensed tax professional with the authority to represent taxpayers before the IRS and is uniquely qualified to assist in these matters.

Here’s how Steve can help:

• Evaluate the Situation: Steve reviews the IRS notice and determines the best course of action based on the taxpayer’s financial and tax situation.
• Prepare and File Form 12153: Ensures the form is accurately completed and filed within the appropriate deadline.
• Develop a Resolution Strategy: Helps identify the most appropriate collection alternative, such as an installment agreement, Offer in Compromise, or hardship status.
• Represent the Taxpayer in Hearings: Steve will speak directly with IRS Appeals on the taxpayer’s behalf, providing financial documents and negotiating solutions.
• Avoid Further Enforcement: Timely filing of Form 12153 may suspend collection actions, providing breathing room while a resolution is sought.

Final Thoughts

IRS Form 12153 is an essential tool for taxpayers facing enforced collection actions. It offers an opportunity to present alternatives, correct misunderstandings, and avoid severe financial consequences. However, timing is critical, and the process can be complex.

Partnering with an experienced Enrolled Agent can provide clarity, protection, and strategic guidance through the CDP or equivalent hearing process. With the right support, taxpayers can resolve their IRS matters with greater confidence and peace of mind.

Need assistance with an IRS collection notice? Contact Steve Perry, Enrolled Agent at Books, Taxes & More, to review your options and represent your interests in a Collection Due Process or equivalent hearing.

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