Collection Due Process (CDP)

Full Definition

Collection Due Process (CDP) is a legal right that allows taxpayers to request a hearing before the IRS Office of Appeals when they receive certain collection notices (like CP90 or LT11). During a CDP hearing, you can discuss collection alternatives, challenge the underlying tax liability (in some cases), and raise issues about proper IRS procedures. Requesting a CDP hearing within 30 days of the notice temporarily halts levy action. If you miss the 30-day deadline, you can request an Equivalent Hearing, but collection action will continue.