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Do you need a collection due process request?

Receiving a letter from the IRS about unpaid taxes can be unsettling and create a great deal of uncertainty. You might wonder about your options and whether you need to file a Collection Due Process (CDP) request in California. 

What is a collection due process request?

A Collection Due Process request allows taxpayers to challenge IRS collection actions like liens or levies. When you receive a notice from the IRS, you typically have 30 days to request a CDP hearing. 

This hearing gives you the chance to explain your situation in detail, providing any relevant documents or evidence that support your case. You can propose alternative payment arrangements, such as setting up a payment plan that fits your financial circumstances. 

When should you consider a CDP request?

You should consider filing a CDP request if you believe there is an error in the tax amount the IRS claims you owe. If the IRS has already placed a lien or levy on your property, a CDP request can temporarily stop these actions until your hearing. 

Additionally, you should consider a CDP request if you have not received proper notification from the IRS regarding their actions if you have already paid the disputed amount, or if you are in the process of arranging an installment agreement or an offer in compromise.

Why timely action matters

Acting quickly is crucial when dealing with IRS notices. Filing a CDP request promptly can protect your rights and provide you with the opportunity to address the situation in a fair manner. By staying proactive, you can find a resolution that works best for your financial situation.