What is a Collection Due Process (CDP) hearing?

• A. An opportunity to appeal certain collection actions before those actions proceed.
• B. A review of tax returns for accuracy after assessment.
• C. An appeal process after enforcement actions have completed.
• D. A conference with a local tax office to discuss refunds.

Answer: (A)

A CDP hearing is the chance to challenge IRS collection actions before they take effect. When the IRS notifies you that a collection action may proceed—such as a levy or a notice of federal tax lien—or after a 30-day levy notice, you can request a CDP hearing with the IRS Office of Appeals. The purpose is to review whether the proposed collection action is appropriate and to discuss alternatives, like an installment agreement, an offer in compromise, or temporarily not collectible status. It focuses on collection decisions, not on reviewing the accuracy of tax returns or on refunds. The hearing is held with Appeals to help determine the best path forward before the collection action is carried out.