8.22.4 Collection Due Process Appeals Program

Manual Transmittal

August 26, 2020


(1) This transmits revised IRM 8.22.4, Collection Due Process, Collection Due Process Appeals Program.

Material Changes

(1) See the table below for material changes in this IRM:

Title and Brief Description, Program Scope and Objectives Revised this section, creating a new section for Program Scope and Objectives., Background New subsection added for Background., Authority New subsection added for general authorities., Responsibilities New subsection added to state program responsibilities., Program Reports New subsection added for program reports., Terms and Acronyms Refers users to an IRM exhibit at 8.22.4-3 for the most common program related terms and acronyms., Appeals Policy At (4) and (5), minor revisions to more clearly state Appeals’ policy objectives., Summary of CDP Process
  • At (1), revised to include all CDP notices (as of publication)

  • At (5), revised to add that a NFTL may be filed for a new assessment on a tax period and type of tax for which a NFTL has previously been filed. The new NFTL will generate a new CDP right for the new assessment only., Use of Digital Signatures New subsection ads protocols for the use of digital signatures., Attach Certain Documents to ACDS New subsection lists certain key documents that are to be attached to the Appeals Centralized Database System (ACDS), in all cases where present., Equivalent Hearing (EH) At (4), clarified that while levy action is generally suspended during an EH, it may occur at appropriate times., Collection’s CDP Procedures
  • At (5), removed AMS prints are a requirement for ACS cases.

  • At (11), clarified Collection’s automated levy programs.

  • At (15), clarified when Collection might levy during a CDP or EH lien case., Appeals Employees in CDP Clarified Appeals employees involved in technical CDP case work., Appeals Officers
  • Revised "Settlement Officer" title to "Appeals Officer" .

  • At (1), clarified that Appeals Officers are specialized to work either Examination or Collection issues.

Exhibit 8.22.4-1, Delegation Order Appeals - 193-1 Corrected appropriate references to Case and Operations Support.
Exhibit 8.22.4-2, CDP/EH Forms, Letters and Other Documents
  • Removed obsolete Letter 4299, Bankruptcy Resolution Notice of Determination

  • Removed obsolete Letter 4300, Bankruptcy Resolution Decision Letter

  • Removed obsolete Form 13929, Bankruptcy Resolution Transmittal Memorandum - CDP Cases

  • Removed obsolete Letter 3821, Appeals Received Your Offer in Compromise and We Can Consider It

Exhibit 8.22.4-3, Common Terms and Acronyms Used in Collection Due Process New exhibit created for the most common program related terms and acronyms.
Exhibit 8.22.4-4, CDP Naming Conventions for Documents Attached to ACDS New exhibit created for the most common documents that may be attached electronically to the ACDS record, and naming conventions for uniformity.
Throughout Revised to:
  • Update citations and references.

  • Generally incorporate plain language writing, active voice, grammar and organization.

Effect on Other Documents

IRM 8.22.4, dated August 9, 2017, is superseded.


Appeals Officers, Appeals Account Resolution Specialists and Appeals Team Managers

Effective Date


Steven M. Martin
Director, Case and Operations Support

Program Scope and Objectives

  1. Purpose: This section provides an overview of the Collection Due Process (CDP) program to Appeals Officers (AOs) and other Appeals employees working CDP cases and related matters. Instructions for Appeals employees working CDP cases are divided into six sections:

    IRM Title and Brief Description
    8.22.4 Collection Due Process Appeals Program
    • CDP background and overview

    • Instructions for CDP Fast Track Mediation

    8.22.5 Receipt, Control and Pre-Conference Considerations
    • Initial case review, controls and verifications

    • Pre-conference considerations

    • Substantive Contact Letter requirements

    • Separate Timeliness Determination procedures

    8.22.6 Cases Requiring Special Handling
    • Instructions on cases that bring unique issues to CDP

    8.22.7 Alternatives to Collection Action
    • Appeals Referral Investigation (ARI) procedures

    • Instructions for collection alternatives such as installment agreements (IA), penalty appeals (PENAP), interest abatement (ABINT) and offers in compromise (OIC)

    8.22.8 Liability Issues and Relief from Liability
    • Instructions on working CDP cases involving issues of liability, including innocent spouse, penalty abatement, math errors, etc.

    8.22.9 Closing and Post Closing Actions
    • Instructions on closing CDP cases

    • Instructions on issues that arise after the Notice of Determination is issued

    Additionally, Appeals employees working CDP cases must have a thorough knowledge of conference and settlement procedures applicable to all of Appeals found in other sections of IRM Part 8 including:

    IRM Title and Brief Description
    8.1 Appeals Function
    • General operating guidance for working cases in Appeals

    • Disclosure, security and outside contact requirements

    • Ex parte communication

    8.2.1 Agreed Pre-90 Day Income Tax Cases
    • Many of the procedures in this section are used on every case regardless of the type of tax involved; however, certain cases also require special procedures. These special procedures are covered in separate IRM sections containing information solely applicable to that type of case

    • Overview of conducting an Appeals conference

    8.6.1 Conference and Issue Resolution
    • Communication with taxpayers

    • Conference techniques

    • Circuit riding and case transfer procedures

    8.6.2 Appeals Case Memo Procedures
    • Preparing an ACM

    • Completing Customized Form 5402

  2. Audience: The primary users of this IRM are Appeals Officers (AOs) and Appeals Team Managers (ATMs) handling CDP, Equivalent Hearing (EH), Retained Jurisdiction (RJ) and CDP Timeliness Determination (CDPTD) cases.

  3. Policy Owner: Director, Case and Operations Support.

  4. Program Owner: Director, Policy, Planning, Quality and Analysis (PPQ&A).

  5. Contact Information: Appeals employees should follow established procedures on How to Contact an Analyst. Other employees should contact the Product Content Owner shown on the Product Catalog Information page for this IRM section


  1. The IRS Restructuring and Reform Act of 1998 (RRA 98) created Collection Due Process (CDP) appeal rights and with them, the ability for taxpayers to contest their liability under certain circumstances.


  1. Internal Revenue Code (IRC) sections 6320 and 6330 are the primary sources of authority, in addition to applicable Internal Revenue Manual (IRM) sections. Further, the Taxpayer Bill of Rights, IRC 7803(a)(3), applies to Appeals employees’ interactions with taxpayers.


  1. The Policy analyst shown on the Product Catalog page as the originator is the assigned author of this IRM.

Program Reports

  1. PPQ&A provides trend and data analyses and detailed summary reports for Appeals.

Terms and Acronyms

  1. See IRM Exhibit 8.22.4-3, Common Terms and Acronyms Used in Collection Due Process, for such common terms and their definitions.

CDP Process Overview

  1. This section provides an overview of the CDP process and Appeals' role and responsibilities within the process.

Appeals Policy

  1. Appeals’ mission is to resolve tax controversies on a basis which is fair and impartial to the Government and the taxpayer. To accomplish this mission in CDP cases, the Appeals hearing officer is responsible for making a determination based on the facts and the law known to Appeals during the time of the hearing.

  2. The Tax Court's standard of review for non-liability CDP determinations is for abuse of discretion. The Tax Court considers:

    • Whether Appeals' factual and legal conclusions reached at a CDP hearing are reasonable, not whether they are correct

    • The reasonableness of Appeals’ ultimate decision

    In Dalton v. Commissioner, 682 F.3d 149, the First Circuit held that a deferential standard of review is appropriate, noting the record usually available to the Tax Court in CDP cases.

  3. CDP files sent to Appeals should contain sufficient documentation for Appeals to make a determination. Due to statutory requirements, if a CDP file lacks documentation, it cannot be returned to Collection as a premature referral. Instead, the hearing officer must decide whether to:

    • Request relevant information from the taxpayer, or

    • Issue an Appeals Referral Investigation (ARI) for Collection to secure or verify information

  4. Part 5 Collection Process IRM contains the primary administrative policies and procedures for considering alternatives to collection and case resolutions such as:

    • Offer in Compromise- IRM 5.8

    • Federal Tax Liens-IRM 5.12

    • Installment Agreements- IRM 5.14

    • Financial Analysis - IRM 5.15

    • Currently not Collectible - IRM 5.16

    • Liability Collection, Balance Due, IRM 5.19.1 for Automated Collection Service (ACS) cases.

  5. Appeals researches Part 5, in general, to:

    • Verify whether administrative procedures were followed in issuing a Notice of Intent to Levy and/or filing a Notice of Federal Tax Lien (NFTL)

    • Review Collection case actions and decisions, taking into account any special circumstances

    • Evaluate any offers of collection alternatives by the taxpayer

  6. References in IRM Part 5 to take or propose any enforcement or investigative activity do not apply to Appeals employees.

Summary of CDP Process

  1. Taxpayers may request a CDP hearing upon receipt of a:

    • Letter 3172, Notice of Federal Tax Lien Filing and Your Rights to a Hearing Under IRC 6320

    • Letter 11, Final Notice - Notice of Levy and Notice of Your Right To A Hearing

    • ACS LT 73

    • ACS LT 75

    • Letter 1058, Final Notice Reply Within 30 Days

    • Letter 1058 (BR) Final Notice Reply Within 30 Days (Braille Version)

    • Letter 1058 (SP), Final Notice Reply Within 30 Days - Spanish

    • Letter 1058-A Notice of Intent to Levy and Notice of Your Right to a Hearing for Joint Filers

    • Letter 1058-A (SP) Notice of Intent to Levy and Notice of Your Right to a Hearing for Joint Filers (Spanish)

    • Letter 1058-B Final Notice Reply Within 30 Days - Branded Prescription Drugs

    • Letter 1058-D, Post Levy Collection Due Process Notice

    • Letter 1058-D (SP) Post Levy Collection Due Process Notice (Spanish)

    • Letter 1058-F Post Levy Federal Contractor Collection Due Process

    • Letter 1058-F (SP) Post Levy Federal Contractor Collection Due Process Notice (Spanish)

    • Letter 1058-I, Final Notice Reply Within 30 Days - Insurance Provider Fee

    • CP 77, 90, 92, 242 and 297

    • Letter 2439, Notice of Jeopardy Levy and Right of Appeal

  2. IRC 6320 requires the IRS to notify the taxpayer of the filing of a Notice of Federal Tax Lien (NFTL) and the right to request a CDP lien hearing within 5 business days after the first NFTL for a tax period is filed.

  3. IRC 6330 requires the IRS to notify the taxpayer of the right to request a CDP hearing not less than 30 days before issuing the first levy to collect a tax period.


    The IRS waits 10 days after issuing the notice of assessment of tax and demand for payment before issuing the Notice of Intent to Levy. However, Treas. Reg. 301.6331-2(a)(1) permits concurrent issuance of the notice of assessment and the Notice of Intent to Levy.

  4. IRC 6330(f) contains exceptions to a right to a hearing before levy. When a levy is served in the following instances, the taxpayer is offered an opportunity to request a post-levy hearing:

    1. Collection of the tax was in jeopardy

    2. State Income Tax Levy Program (SITLP)

    3. "Disqualified" employment tax levy (DETL)

    4. Federal contractor levies under the Federal Payment Levy Program (FPLP)

  5. IRC 6320 and IRC 6330 provide for one hearing per type of tax and tax period for the tax debt listed on the NFTL or Notice of Intent to Levy. The right to request a CDP hearing applies to the first NFTL filed or the first levy notice issued for a particular tax debt.


    IRS filed an NFTL in Washington County on 01/11/14 listing a Form 1040 tax debt for tax year 2011. An NFTL was also filed in Lincoln County on 03/17/14 listing the same 2011 Form 1040 tax debt. The NFTL filed 01/11/14 in Washington County is the NFTL to which the right to a hearing under IRC 6320 applies.


    A Letter 3172 is also issued when a NFTL is subsequently filed for the same tax period, but includes an additional assessment (e.g., TC 290, TC 300, TC 240) that is not shown on the previous NFTL. In this circumstance, a hearing is granted for the additional assessment. See IRM, CDP Notice for NFTL on Additional Assessments


  6. The taxpayer may receive more than one CDP pre-levy hearing under IRC 6330 where the same type of tax for the same period is involved, but where the amount of the unpaid tax has changed as a result of an additional assessment of tax (not including interest or penalties) for that period or an additional accuracy-related or filing-delinquency penalty has been assessed.


    Collection cannot systemically isolate an additional assessment of tax when issuing the CDP levy notice. A CDP levy notice for additional tax includes the balance for the whole period. If the taxpayer requests a CDP hearing, the hearing only covers the additional tax assessment if the taxpayer already had an opportunity for a hearing on the original tax assessment.

  7. The taxpayer is not entitled to another CDP hearing under IRC 6330 if the additional assessment represents accruals of interest, penalties, or both. However, an exception to one hearing per type of tax and tax period can occur with penalties. The taxpayer is entitled to a second CDP notice/second opportunity for a hearing for Failure to Pay (FTP) penalty if the prior CDP notice listed no accrued or assessed FTP. See Treas. Reg. 301.6330-1(d)(2) Q&A D-1.

  8. IRC 6320 refers to IRC 6330 for the legal requirements regarding:

    • Matters considered by Appeals at the hearing- IRC 6330(c)

    • Judicial review of the determination made by Appeals-IRC 6330(d)

    • Suspension of collection activity and the statutory period of limitations-IRC 6330(e)

  9. A CDP lien hearing is held in conjunction with a CDP levy hearing whenever an NFTL is filed and Notice of Intent to Levy are concurrently issued, and the taxpayer requests a hearing under both Code sections.

  10. In making a CDP determination, IRC 6330(c)(3) requires Appeals to:

    1. Verify applicable law and administrative procedure were met;

    2. Consider relevant issues relating to the unpaid tax, the filing of the NFTL or the proposed levy; and

    3. Consider whether the action taken or proposed balances the government's need for the efficient collection of taxes with the taxpayer's legitimate concern that any collection action be no more intrusive than necessary.

  11. The taxpayer may raise any non-frivolous issue relating to the NFTL or the proposed levy.

  12. An issue may not be raised at the CDP lien or levy hearing if the taxpayer participated meaningfully in any previous administrative or judicial proceeding where the same issue was already raised and considered.

  13. The taxpayer may seek judicial review of the Notice of Determination by filing a petition in the United States Tax Court.

Statute Responsibility in CDP

  1. Appeals has no tools to protect a tolling collection statute expiration date (CSED) in CDP and no responsibility to do so.

  2. Appeals has no requirement to prepare a Form 3999, Statute Expiration Report, for expired CSEDs in CDP.

  3. Refer to IRM 8.21.5, Statutes on Collection Cases, for collection statute issues.

Use of Digital Signatures

  1. The use of digital signatures in taxpayer correspondence is commonplace. When digitally signing any document being sent to the taxpayer or representative, the signature must be only a scanned facsimile of your actual signature.

  2. Signatures must not include Adobe graphics, the date, SEID, e-mail address or other employee information or be merely a typewritten signature font.

  3. Contact Appeals BSP, the lead program analyst for CDP, or the Appeals Exchange web site for assistance creating digital signatures.

Attach Certain Documents to ACDS

  1. Regardless of how the CDP case file is managed (as a paper file, electronic, or a hybrid of the two), certain key documents should always be attached electronically to the ACDS record. This will ensure the secure storage and ease of availability of these key documents.

  2. Documents should be attached electronically to the ACDS record for the CDP key file.

  3. These documents include the following:

    • Appeals Case Memorandum or NOD Attachment

    • Counsel Memorandums

    • Notice of Determination or Decision Letter

    • Written verification of IRC 6751(b)(1) supervisory approval of certain penalties; IRM

    • Form 14559, Appeals Offer in Compromise Memorandum

    • Form 14561, Income and Expense / Asset Equity Table

    • Form 14640, OIC Addendum

    • Form 12256, CDP Withdrawal

    • Form 12257, Summary Notice of Determination

    • Form 2209, Courtesy Investigation

    • Form 2261, Collateral Agreement (any)

    • Form 3870, Request for Adjustment

    • Letter 3978, Supplemental NOD

    • Letter 4000, Collection Due Process Last Chance Letter

    • Form 4183, Recommendation re: Trust Fund Recovery Penalty Assessment

    • Form 433-D, Installment Agreement

    • Form 5402, Appeals Transmittal and Case Memo

    • Letter 5490, OIC Acceptance

    • Letter 5521, OIC Acceptance - Doubt as to Liability

    • Form 656, Offer in Compromise

    • Form 656-L, Offer in Compromise, DATL

    • Form 7249, OIC Acceptance Report


    When created in ACDS, some of the items listed above may already be systemically attached electronically to the system.


    Other attachments may also be included.

  4. See Exhibit 8.22.4-4, CDP Naming Conventions for Documents Attached to ACDS, for appropriate file naming conventions for certain uploaded documents.

Equivalent Hearing (EH)

  1. A taxpayer who fails to make a timely request for a CDP hearing is not entitled to a CDP hearing, but may request an administrative Appeals hearing, which is referred to as an Equivalent Hearing (EH). In an EH, follow the same procedures and consider the same issues as a CDP hearing.

  2. A taxpayer must submit a written request for an EH within the one-year period beginning the day after the date of the CDP levy notice. For a CDP lien EH, a taxpayer must submit a written request for the EH within the one-year period beginning the day after the end of the five-business-day period following the filing of the NFTL. If a taxpayer does not request an EH within the prescribed time, the taxpayer forgoes the right to an EH.

  3. Appeals confirms a request for an EH was not timely in the CDP separate timeliness determination (CDPTD). See IRM , Collection Due Process Timeliness Determinations (CDPTD).

  4. During an EH, levy action is generally suspended:

    • On tax periods not subject to a CDP levy hearing, unless all pre-levy notifications have been met,

    • On tax periods subject to the EH

    • On tax periods subject to a CDP NFTL hearing


      Because the statutory period under IRC 6330(e) is not suspended, Collection may determine it to be necessary to levy despite the above factors. IRM below describes when Collection may deem it appropriate to levy while an EH case is open.

  5. Appeals issues a Decision Letter instead of a Notice of Determination. The taxpayer is not entitled to seek judicial review of Appeals' decision in an EH case unless one or more of the following issues are raised:

    1. Spousal relief under IRC 6015

    2. Abatement of interest under IRC 6404(h)

    3. Timeliness of the request for a CDP hearing

  6. There is no retained jurisdiction in an EH case.

  7. See Treas. Reg. 301.6330-1(i) for more information on EH hearings.

Collection's CDP Procedures

  1. Collection should only issue one CDP levy notice and one CDP lien notice per tax period, unless an additional amount of tax (other than interest and penalty accruals) is assessed.


    Collection must issue separate CDP notices to husband and wife when the liabilities are joint, even if they reside at the same address


    Collection may issue separate CDP notices to individual partners as well as the partnership entity in partnerships

  2. Integrated Data Retrieval System (IDRS) Transaction Code (TC) 971 with an appropriate Action Code (AC) is input as follows after the IRS mails a CDP notice:

    • TC 971 AC 069 - Notice of Intent to Levy and Notice of Your Right to a Hearing

    • TC 971 AC 252 - Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320

  3. Once a Form 12153, Request for a Collection Due Process or Equivalent Hearing, is received from a taxpayer, Collection may continue to work with the taxpayer for up to 90 days, if the taxpayer is willing. If Collection determines there are indicators of fraud, Collection may hold a CDP hearing request for 90 days while developing a fraud referral. See IRM, Processing CDP and EH Requests. Collection promptly forwards a case to Appeals in the following instances:

    1. Frivolous issues are raised

    2. The taxpayer only wants to work with Appeals

    3. The taxpayer is not seeking to resolve the issue but is using the CDP process as a method for delay, i.e., pyramiding in-business trust fund taxpayer

    4. Bankruptcy was filed after the CDP levy or lien notice was sent

    5. The trust fund assessment (MFT) 55 or 17 is being challenged (ACS only)

    6. The only issue is a request for an IA and the assessed balance is $250,000 or more (ACS only)

    7. Cases with a TC 914, 916 or 918 Criminal Investigation (CI) where the taxpayer raises concern over the CI issue

  4. Collection prepares a CDP transmittal document for every CDP and EH case sent to Appeals:

    • Field Revenue Officers (RO) use Form 14461, Transmittal of CDP/Equivalent Hearing Request

    • ACS uses Form 12153-B, Referral Request for CDP Hearing from ACS Support

  5. In addition to the CDP transmittal document, Collection should also provide the following documentation:

    • Form 12153 or other written request for a hearing along with the envelope, if received by mail

    • Copy of the CDP notice, such as the Letter 1058, Final Notice - Notice of Intent to Levy and Notice of Your Right to a Hearing, or Letter 3172, Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320

    • Copy of Form 2848, Power of Attorney and Declaration of Representative, or IDRS command code CFINK print

    • Collection Information Statement or other financial information

    • Copies of correspondence to and from the taxpayer or Power of Attorney

    • Copy of original or amended return, if available

  6. The RO or ACS employee enters the date of receipt of the CDP hearing request on the CDP transmittal document. Based on the data entered, a TC 520 with one of the following closing codes (cc) is input onto each tax period starting the suspension of the CSED:

    1. cc 76 for CDP lien case (DPLN)

    2. cc 76 for combination CDP lien and levy case (DPL2)

    3. cc 77 for CDP levy case (DPLV)

  7. Responsibility for input of the TC 520 cc 76/77 is:

    1. ACS for ACS-sourced cases

    2. Account and Processing Support (APS) for RO-sourced cases

  8. Appropriate Individual Master File (IMF) CSED indicators are also input with the TC 520. The indicators are:

    • P = primary TIN spouse

    • S = secondary TIN spouse

    • B = both primary and secondary TINs

  9. The CSED is systemically calculated and updated via the TC 520 and TC 521 entries. An exception to this systemic CSED update is an IMF account involving a joint income tax liability where only one spouse has requested the hearing.

  10. The CSED is not suspended during an EH case, so a TC 971 AC 278 is entered onto each EH tax period.

  11. IRS uses Automated Levy Programs (ALPs) through which select federal tax debts are matched with state taxing authorities and federal agencies disbursing funds, such as salary, pension, and vendor payments. See IRM 5.19.9, Automated Levy Programs (ACS), and IRM 5.11.7, Automated Levy Programs (Collection field) for more information about ALPs and the procedures used to administer the programs, which are divided into three categories:

    • Alaska Permanent Fund Dividend Levy Program (AKPFD) – attaches to the Permanent Fund Dividend distributed by Alaska

    • Federal Payment Levy Program (FPLP) – attaches federal payments to individuals or businesses

    • Municipal Tax Levy Program (MTLP) - matches a Master File database of delinquent taxpayers eligible to be levied against a database of local income tax refunds for each municipality participating in MTLP

    • State Income Tax Levy Program (SITLP) – attaches state income tax refund

  12. The following TC 971 action codes identify ALPs and may appear in either CDP or EH cases:

    TC 971 Action Code Explanation
    060 Input each time the account goes to FPLP
    600 Input annually when in SITLP program
    601 Input annually when in AKPFD program

  13. In most instances, collection of the tax by levy is suspended on tax periods in a timely CDP levy hearing. The exceptions include:

    1. Disqualified employment tax levy (DETL)

    2. Systemic levy of a state income tax refund under SITLP

    3. Systemic levy of federal contractors under FPLP

    4. During an appeal to the Tax Court or appellate court, where the underlying tax is not at issue, levy action may continue if the court determines that the IRS has shown good cause not to suspend the levy. Counsel contacts Collection if they are considering a motion to permit levy.

    5. To collect the jointly owed tax from the non-requesting spouse where only one spouse has requested a CDP hearing.

    6. When the IRS determines collection of the tax is in jeopardy

    Type Jeopardy Exception
    Installment Agreement Treas. Reg. 301.6159-1(f)(2): Paragraph (f)(1) of this section shall not prohibit levy if the taxpayer files a written notice with the IRS that waives the restriction on levy imposed by this section, the IRS determines that the proposed installment agreement was submitted solely to delay collection, or the IRS determines that collection of the tax to which the installment agreement or proposed installment agreement relates is in jeopardy.
    Offer in Compromise Treas. Reg. 301.7122-1(g)(3): The IRS may levy to collect the liability that is the subject of an offer to compromise during the period the IRS is evaluating whether that offer will be accepted if it determines that collection of the liability is in jeopardy.

  14. Collection of the tax by levy is generally suspended on tax periods that are the subject of:

    • An EH

    • Timely-filed request for a CDP lien hearing if all pre-levy requirements are met

    • During a retained jurisdiction proceeding

  15. Collection may deem levy action appropriate in a CDP lien or EH case if:

    1. Collection is at risk, e.g., the taxpayer is dissipating assets or pyramiding additional liabilities

    2. The taxpayer raises only frivolous issues

    3. The taxpayer is requesting an installment agreement or offer in compromise solely to delay the collection process

  16. In such instances, Collection contacts the hearing officer's Appeals Team Manager (ATM) by secure e-mail to advise levy action is planned and asks whether Appeals has information that may affect the decision to levy. The ATM responds within 5 days with yes or no response:

    • Yes, Appeals has information that levy would create an economic hardship for an individual taxpayer, or

    • Yes, Appeals has information that would prohibit levy absent a determination that collection of the tax is in jeopardy, or

    • No, Appeals has no information that would prohibit levy action

  17. Collection may file an NFTL while a CDP lien or levy hearing is pending. Before doing so, they contact the ATM to advise of the planned action and to see if Appeals has any information that would affect the NFTL filing decision.

  18. Collection cannot include an Affordable Care Act (ACA) individual shared responsibility payment (SRP) MFT 35 liability on an NFTL or proposed levy. As a result, MFT 35 periods should never be in CDP.

Appeals Employees in CDP

  1. The issues for which the taxpayer requests Appeals consideration guide who in Appeals considers such issues. Generally, those responsible for conducting CDP hearings and considering technical issues include:

    • Appeals Account Resolution Specialist (AARS)

    • Appeals Officers (AO)

    • Appeals Team Managers (ATM)

  2. See IRM 8.20.5, Carding New Receipts, and IRM 8.20.7, Closing Procedures, for APS processing of CDP and EH cases.

Appeals Officers (AO)

  1. AOs conduct hearings by considering issues and alternatives to collection action in CDP cases. AOs are generally specialized to work either Examination or Collection issues.

Appeals Account Resolution Specialists (AARS)

  1. AARS duties may include, but are not limited to:

    • Screening and developing cases for SOs

    • Monitoring cases in suspense

    • Working Separate Timeliness Determination cases

    • Scheduling appointments

    • Working certain less complex CDP/EH cases

  2. The AARS may document the receipt of a case for screening and corrective actions taken. Verification actions during the screening process include:

    Verification Action Corrective Action
    Request for hearing (Form 12153, Request for a Collection Due Process or Equivalent Hearing , other written request) was properly signed by the taxpayer or the taxpayer’s authorized representative Contact the taxpayer or representative to 'perfect' the hearing request following procedures in IRM, Imperfect Hearing Request
    Ensure information on Case Summary Card is accurate
    • Type of hearing

    • Type of tax and tax periods match CDP Notice

    • Statute suspension (Integrated Data Retrieval System (IDRS) Transaction Code (TC) 520) and closing code (76/77) on a timely request was correctly input on CDP periods

    • Statute suspension (TC 520) and closing code (76/77) was not placed on Equivalent Hearing periods

    • The work unit (WUNO) contains the correct Appeals Database Control System (ACDS) feature codes - see IRM, Feature Codes

    Work with Account and Processing Support (APS) to correct Case Summary Card errors

  3. AARS may request a withdrawal of the CDP hearing using Letter 4388, Withdrawal Solicitation. See IRM, CDP Withdrawals.

  4. The Fresno AARS team provides Customer Service on closed cases. The following are examples of problems that AARS can resolve:

    • IA, OIC and Currently Not Collectible (CNC)

    • Account freezes

    • Form 3870, Request for Adjustment, processing

    • Misapplied/Missing payment research

    • Innocent spouse allocations including the mirroring process

    • Application of Tax Court decisions

    • Erroneous refunds

    • Unpostable transaction codes

    • Excess collections issues

  5. AARS does not have the authority to change case determinations or decisions.

Appeals Team Managers (ATM)

  1. ATMs have supervisory responsibilities for Appeals Officers and Settlement Officers. ATMs review cases for completeness, accuracy and decision quality. ATMs have approval authority in most CDP cases. See Exhibit 8.22.4-1, Delegation Order Appeals-193-1.

  2. ATMs are also responsible for monitoring compliance with ex parte communication requirements.

Ex Parte Communication

  1. For guidance on ex parte communications between Appeals employees and employees of other IRS functions, see IRM 8.1.10, Ex Parte Communications, and Rev. Proc. 2012-18.

Fast Track Mediation (FTM)

  1. The objective of Fast Track Mediation (FTM) is to allow SB/SE Collection personnel and SB/SE taxpayers an opportunity to mediate their collection disputes with an Appeals official serving as a neutral party, or mediator. FTM is optional for the taxpayer and does not eliminate or replace existing dispute resolution options, including the taxpayer’s opportunity to request a hearing before Appeals. For guidance on FTM, see IRM 8.26.3, Alternative Dispute Resolution (ADR) Program, Fast Track Mediation for Collection Cases.

Delegation Order Appeals-193-1

Authority Delegated to
To conduct hearings and make determinations under sections 6320 and 6330 of the Internal Revenue Code (relating to notice and opportunity for hearing upon filing of notice of lien and before levy).
  • AOs

  • SOs

  • AARS

To review and approve determinations made under sections 6320 and 6330 of the Internal Revenue Code (relating to notice and opportunity for hearing upon filing of notice of lien and before levy), except in the case of any Form 12257, Summary Notice of Determination, Waiver of Right to Judicial Review of a Collection Due Process Determination, and Waiver of Levy Prohibition, that the Director, Tax Policy and Valuation (Appeals) determines in writing does not require review and approval. ATMs
To determine which Appeals employees may accept from the taxpayer, and execute on behalf of the IRS Form 12257, Summary Notice of Determination, Waiver of Right to Judicial Review of a Collection Due Process Determination, and Waiver of Levy Prohibition. Director, Case and Operations Support
Redelegation and Sources of Authority
Redelegation Sources of Authority
The above authorities may not be redelegated.
  • IRC 6320

  • IRC 6330

  • Servicewide Delegation Order No. 1-23 (formerly DO-193, Rev. 6)

To the extent that the authority previously exercised consistent with this order may require ratification, it is hereby affirmed and ratified. This order supersedes Delegation Order App 8-a (Rev. 1).

CDP/EH Forms, Letters, and Other Documents

Form/Letter Number and Name Purpose
Pre-Conference Letters
Letter 3846: Appeals Received Your Request for a Collection Due Process Hearing
  • Schedules telephone conference

  • Offers taxpayer the opportunity to withdraw the frivolous positions

Letter 4837: Substantive Contact Uniform Acknowledgement Letter
  • Schedules a telephone conference

  • Advises of opportunity to request an in-person conference

  • Details supplemental information needed

Letter 4000: Last Chance Letter Used if taxpayer fails to respond to Substantive Contact Letter to offer the taxpayer the mandatory second opportunity to provide information for consideration.
Letter 4380: Appeals Received Your Request for a Collection Due Process and/or Equivalent Hearing
  • Acknowledges a frivolous CDP submission

  • Solicits a withdrawal of the frivolous position

Withdrawal and Waiver Forms and Letters
Form 12256: Withdrawal of Request for Collection Due Process or Equivalent Hearing Taxpayer withdraws either CDP or EH request
Form 12257: Summary Notice of Determination and Waiver of Right to Judicial Review Taxpayer agrees with resolution reached with Appeals and waives right to file judicial review
Form 14041: Waiver of Right to Request New AO/SO Taxpayer waives prior involvement of Appeals employee, which allows them to conduct current hearing
Letter 4382: Form 12257 Closing Letter Transmits waiver Form 12257 to taxpayer
Letter 4388: Withdrawal Solicitation Solicits withdrawal where Collection resolved the taxpayers issue
CDP Notice of Determination Letters and Attachment
Letter 3193: Notice of Determination Concerning Collection Actions under Sections 6320 and 6330
  • Issued in timely CDP cases

  • Gives taxpayer right to petition Tax Court for review of Appeals' determination

  • Sent separately to each joint filer with copy to Power of Attorney (POA) if applicable.

Letter 3978: Supplemental Notice of Determination A supplemental CDP determination issued after the Tax Court remands a case back to Appeals
Letter 4389: Notice of Determination - Abatement of Interest
  • Notice of Determination in timely CDP hearing

  • Provides time frame for filing for a judicial review of the interest abatement issue

Letter 4390: Notice of Determination - Request for Relief from Joint and Several Liability
  • Notice of Determination in timely CDP hearing

  • Provides time frame for filing for a judicial review of the innocent spouse issue

CDP Attachment Attachment template for Notice of Determination and Decision Letters
Equivalent Hearing Decision Letters and Attachment
Letter 3210: Decision Letter on Equivalent Hearing under IRC Section 6320 and/or 6330
  • Decision in EH

  • No right to petition Tax Court for review of Appeals' determination

  • Sent separately to each joint filer with copy to POA if applicable.

Letter 4439: Decision Letter - Equivalent Hearing & Innocent Spouse
  • Decision on EH

  • Provides time frame for filing for a judicial review of the innocent spouse issue

Letter 4440: Decision Letter - Equivalent Hearing & Interest Abatement
  • Decision on EH

  • Provides time frame for filing for a judicial review of the interest abatement issue

Letter 5145: Agreed Equivalent Hearing Closing Letter Agreed decision in EH cases
CDP Attachment Attachment template for NOD and Decision Letter
Other Closing Letters
Letter 4381: Disregard CDP/EH Request Disregards a frivolous/delaying hearing request
Letter 4383: Collection Due Process/Equivalent Hearing Withdrawal Acknowledgement Acknowledges taxpayer's withdrawal of CDP/EH request
Bankruptcy Case Forms
Letter 5010: Collection Due Process Offer in Compromise Bankruptcy Return Used by Appeals when an OIC is returned by Appeals due to taxpayer’s bankruptcy
Bankruptcy Resolution Checklist for CDP/EH file
Compliance Function Referral Forms and Letters
Letter 3820: Appeals Received Your Offer in Compromise and We Can Consider It
  • Generated by Appeals but mailed by Centralized Offer in Compromise (COIC)

  • Advises the CDP OIC has been sent to Collection and that the taxpayer will have an opportunity to respond

Form 13933: Collection Due Process/Equivalent Hearing Offer in Compromise Cover Sheet
  • Used by Appeals to transmit CDP OICs meeting COIC criteria to COIC

  • COIC uses same form to acknowledge receipt of the OIC

Collection Due Process (CDP) Hearing - TP Disputes TFRP Civil Penalty Request for copy of 1153 letter and proof of delivery
Form 14111: Automated Substitute for Return (ASFR)/Substitute for Return (SFR) Cover Sheet Cover sheet for sending returns to ASFR/SFR unit for processing
Letter 5208: Notification of Appeals Referral Investigation Used by Appeals to notify taxpayers that information they provided to Appeals is being referred to Collection for evaluation

Common Terms and Acronyms Used in Collection Due Process

AARS Appeals Account Resolution Specialist
ABINT Interest Abatement
ACA Affordable Care Act
ACDS Appeals Centralized Database System
ACM Appeals Case Memorandum
ADR Alternative Dispute Resolution
AKPFD Alaska Permanent Fund Dividend (Levy Program)
AO Appeals Officer (may refer to a Collection AO or Exam AO
AOIC Automated Offer-in-Compromise (system)
APGOLF Appeals Generator of Letters and Forms. APGOLF and APGOLF 2.0, are subsystems of ACDS, and contain a compilation of most of the letters and forms used by Appeals employees.
APS Account and Processing Support, the unit responsible for the administrative processing of cases in Appeals.
AQMS Appeals Quality Measurement System
ARI Appeals Referral Investigation
ATE Appeals Technical Employee is an umbrella term used to refer generally to any Appeals employee who is assigned a case for settlement consideration (generally, an Exam AO, Collection AO or AARS).
ATFR Automated Trust Fund Recovery (system)
ATM Appeals Team Manager
AUR Automated Under Reporter
ASED Assessment Stature Expiration Date
ASFR/SFR Automated Substitute for Return/Substitute for Return
BBA Bipartisan Budget Act of 2015
"Big Three" Review CDP requirement to verify the following:
  • that legal and administrative requirements were met

  • the issues raised

  • balancing of intrusiveness and fairness

CAP Collection Appeals Program
CAR Case Activity Record
CCISO Cincinnati Centralized Innocent Spouse Operation
CDP Collection Due Process
CDP Lien Notice Refers to the notice issued to taxpayers to advise them of the CDP rights available when a notice of federal tax lien is filed.
CDPTD Collection Due Process Timeliness Determination
CFR Code of Federal Regulations
CI Criminal Investigation
CML Certified Mail List
CNC Currently Not Collectible
COIC Centralized Offer-in-Compromise
CSED Collection Statute Expiration Date
CSO Child Support Obligations
CZ Combat Zone
DATC Doubt as to Collectibility (OIC)
DATCSC Doubt as to Collectibility with Special Circumstances (OIC)
DATL Doubt as to Liability (OIC)
DETL Disqualified Employment Tax Levy
DDIA Direct Debit Installment Agreement
DIMS Document Information Management System
DOJ Department of Justice
eCase Subsystem within ACDS that allows ACDS to electronically send, receive and store case data from the database of an IRS partner organization
EH Equivalent Hearing (CDP)
ESRP Employer’s Shared Responsibility Payment
ETA Effective Tax Administration (OIC)
FICA Future Income Collateral Agreement (OIC)
FORT Field Office Resource Team (Collection)
FTM Fast Track Mediation
FPLP Federal Payment Levy Program
FRIV Frivolous Return / Submission / Issue(s)
IA Installment Agreement
IBTF In-Business Trust Fund
ICS Integrated Collection System
IDRS Integrated Data Retrieval System
IDT Identity Theft
IRC Internal Revenue Code
IRM Internal Revenue Manual
IS Innocent Spouse
ISTS Innocent Spouse Tracking System
L&A Legal and Administrative Procedure Review
MMIA Manually Monitored Installment Agreement
MOIC Monitoring Offer-in-Compromise
NOL Net Operating Loss
OIC Offer in Compromise
PENAP Penalty Appeal
POA Power of Attorney
PPIA Partial-Payment Installment Agreement
RBA Restitution-Based Assessment
RJ Retained Jurisdiction
RO Revenue Officer
RRAP Rapid Response Appeal Process
SCL Substantive Contact Letter
SITLP State Income Tax Levy Program
SNOD Statutory Notice of Deficiency
SRP Shared Responsibility Payment
TEFRA Tax Equity and Fiscal Responsibility Act of 1982
TFA Taxpayer First Act of 2019
TIPRA Tax Increase Prevention and Reconciliation Act of 2005
USTC United States Tax Court
VSD Virtual Service Delivery
Webex Video Conference Application
WUNO Work Unit Number

CDP Naming Conventions for Electronic Attachments to ACDS

(1) For uniformity, the table below provides naming conventions to be used when documents are attached electronically to ACDS:

Document Document Number Document Title Description When Attaching to ACDS
Form ACDS Update Request Form ACDS Update Request
Form 30-40 Transfer Form 30-40 Form
Document Appeals Case Memorandum or CDP Attachment ACM
Document Fax Cover Page - to TP Fax to TP
Document Fax Cover Page - to REP Fax to REP
Form 12256 Withdrawal of Request for CDP or EH CDP Withdrawal
Form 12257 Waiver of Right to Judicial Review CDP Waiver
Form 14111 ASFR-SFR Routing Sheet ASFR-SFR Routing Sheet
Form 14559 Appeals OIC Memorandum OIC ACM
Form 14561 Income and Expense/Asset Equity Calculation Table IET/AET
Form 14640 Addendum to Form 656 656 Addendum
Form 2209 Courtesy Investigation Courtesy Investigation
Form 2261 Collateral Agreement Collateral Agreement
Form 2261(A, B or C) Collateral Agreement Collateral Agreement (A, B or C)
Letter 3193 Notice of Determination NOD
Letter 3210 EH Decision Letter Decision LTR
Letter 3846 Contact - Frivolous Issues SCL FRIV
Form 3870 Request for Adjustment 3870 Adjustment
Letter 3978 Supplemental NOD Supplemental NOD
Letter 4000 CDP Last Chance Last Chance LTR
Form 433-A Collection Information Statement for Wage Earners and Self-Employed Individuals 433-A CIS
Form 433-B Collection Information Statement for Businesses 433-B CIS
Form 433-D Installment Agreement IA
Form 433-F Collection Information Statement 433-F CIS
Form 4183 Recommendation re: Trust Fund Recovery Penalty Assessment 4183
Form 4340 Certificate of Assessments and Payments Cert of Assessments
Letter 4380 Frivolous Acknowledgement FRIV ACK
Letter 4381 Disregard Frivolous FRIV Disregard
Letter 4382 Form 12257 Closing Letter 12257 Closing LTR
Letter 4383 Withdrawal Acknowledgement Letter Withdrawal ACK
Letter 4388 Withdrawal Solicitation Withdrawal Solicitation
Letter 4390 NOD: CDP/IS NOD IS
Letter 4439 Decision: EH & IS Decision LTR IS
Letter 4440 Decision: EH & ABINT Decision LTR ABINT
Letter 4837 Substantive Contact UAL SCL ACK
Form 4844 Request for Terminal Action Terminal Action
Form 5402 Customized 5402 AO Signed
Form 5402 Customized 5402 ATM Signed
Form 5402 Customized 5402 - Dated - Final
Letter 5490 OIC Acceptance Letter OIC Acceptance
Letter 5521 DATL OIC Acceptance Letter DATL OIC Acceptance
Form 656 Offer in Compromise F656
Form 7429 Offer Acceptance Report F7249
Correspondence to TP CORR TO TP (MMDDYYYY)
Correspondence to REP CORR TO REP (MMDDYYYY)
Correspondence to Third Party CORR to Third Party (MMDDYYYY)
Correspondence from TP CORR FROM TP (MMDDYYYY)
Correspondence from REP CORR from REP (MMDDYYYY)
Correspondence from Third Party CORR from Third Party (MMDDYYYY)