June 01, 2017

The Legal Consequences of Noncompliance with Federal Tax Laws: Collection and Payment

Allen D. Madison

Reprinted with permission from The Tax Lawyer, Fall 2016 (70:1), at 367–402. Copyright © 2016 American Bar Association. All rights reserved. This information or any or portion thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association.


C. Collection Due Process Rights

Before the Service can levy on a taxpayer’s property, it must give the taxpayer an opportunity for administrative review of the Service’s collection actions by the Appeals Office, also known as a CDP hearing.134 Once the Appeals Office issues a notice of determination, the taxpayer may appeal to the Tax Court.135 These procedures provide the taxpayer an opportunity to resolve most concerns regarding the lien and levy process and to negotiate with the Service over whether and how the collection action should proceed.136


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