Collection due process (CDP) allows taxpayers to be heard by IRS Appeals or request collection alternatives after receiving notice of a pending lien or levy. Those who criticize CDP think it is an unnecessary bureaucratic step or a delaying tactic by taxpayers. I will be on a panel at the American Bar Association Tax Section May Meeting in Washington, D.C. The panel is a CDP Summit where we hope to come up with solutions for the parts that are not working rather than a session that complains about the CDP process in place. As we prepare for the panel, I have researched and I am using this episode to explain the basics of CDP.
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