What is the IRS Collection Due Process hearing?

A Collection Due Process (CDP) hearing is your right to challenge IRS collection actions before an independent Appeals officer. You have the right to a CDP hearing when: the IRS files a Notice of Federal Tax Lien (you have 30 days from the date of the notice), or the IRS sends a Final Notice of Intent to Levy (you have 30 days from the date of the notice). At a CDP hearing, you can: challenge the underlying tax liability (if you haven't had a prior opportunity to dispute it), propose collection alternatives (installment agreement, OIC, CNC status), argue that the IRS didn't follow proper procedures, raise issues like spousal defenses or statute of limitations, and present your financial situation. During the CDP hearing, the IRS must suspend all collection activity (levies, garnishments). If you miss the 30-day deadline, you can request an 'Equivalent Hearing' within one year, but this doesn't pause collection and doesn't give you Tax Court appeal rights. If you disagree with the CDP hearing result, you can appeal to the U.S. Tax Court within 30 days. CDP hearings are a powerful tool, but must be requested timely. Many taxpayers miss the deadline because they don't understand the notice they received.