Call Now (800) 681-1295
Close

What is an Equivalency Hearing?

Table of Contents

    The Form 12153 is a request for Collection Due Process or Equivalency Hearing.  If the appeal (Form 12153) is filed within 30-days, it is a timely Collection Due Process (CDP) Hearing.  A CDP will protect the specific tax periods from any further collection action until the taxpayer has the opportunity to be heard.  It also preserves the taxpayer’s right to file a petition in Tax Court.  However, a timely filed Collection Due Process request will toll the collection statute expiration date (CSED).  The CSED is generally a 10 year period from the date of assessment in which the IRS can collect on a tax liability.  However, filing a Collection Due Process request will extend this 10-year period.

    However, if the request for a hearing is filed on the 31st day, or any time up to one year, the request for an appeal becomes an Equivalency hearing.  The taxpayer’s case will still be forwarded to appeals and the taxpayer can request collection alternatives.  However, the taxpayer’s account is not necessarily protected from further collection action while they wait for their hearing.

    Once the request for an Equivalency is filed and transferred to the IRS Appeals Office, the IRS Settlement Officer will send a letter to the taxpayer which informs the taxpayer about the appeals process and provide the taxpayer with the name and contact information of the person in Appeals that has been assigned to the case.  Thereafter, usually within 30-days, the IRS Settlement Officer will send a letter to the taxpayer scheduling the hearing and requesting documentation prior to the hearing date.

    Assuming there are no compliance issues, and the financial documentation was provided to the IRS prior the hearing date, the hearing can be conducted rather quickly.  The IRS will verify the taxpayer’s compliance, verify whether there were any procedural issues, and whether the IRS will accept taxpayer’s proposal on a resolution.  If the parties agree to a resolution, the Settlement Officer will provide the necessary paperwork to the taxpayer.

    If the taxpayer cannot resolve his account with IRS Appeals, the taxpayer does not have the right to appeal in Tax Court.  His or her case will be transferred back to IRS Collections.  However, filing an Equivalency hearing does not extend the 10 year time frame that the IRS can collect on the outstanding tax liability.

    Tax Help Videos

    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    tax lawyers

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    California
    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    Arizona
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    Texas
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    Nevada
    (702) 997-6465
    Florida
    (786) 999-8406
    Utah
    (385) 501-5934