TaxProf Blog: Lesson From The Tax Court: What Constitutes A CDP ‘Hearing’? (March 21, 2022)

Bryan Camp has published his article on the TaxProf Blog titled, “Lesson From The Tax Court: What Constitutes A CDP ‘Hearing’? “, which discusses how before the IRS can collect unpaid tax liabilities by levy, they must give taxpayers an opportunity for a Collection Due Process (CDP) hearing with IRS officials. The article begins as follows:

Before the IRS can start collecting unpaid tax liabilities by levy, §6330(b)(1) requires it to give taxpayers an opportunity for a Collection Due Process (CDP) hearing with the IRS Independent Office of Appeals.
Many taxpayers do not fully understand how CDP hearings work. First, they erroneously expect that a CDP hearing is a discrete and physical event where they (finally!) confront the evil IRS.  Second, they erroneously expect that the point of the hearing is for the evil IRS to justify collection, including proving the correctness of the assessment.  Finally, they expect that they can go to Tax Court and get a do-over if they don’t like the result they get from the CDP hearing.  Taxpayer with those expectations are doomed to disappointment.
Today’s lesson is for them. In Brian K. Bunton and Karen A. Bunton v. Commissioner, T.C. Memo. 2022-20 (Mar. 10, 2022), Judge Morrison gives a nice short lesson on what constitutes a CDP hearings.  The taxpayers complained that their CDP hearing was defective because (1) the Settlement Officer (SO) had not given them an in-person hearing, and (2) the IRS did not show the assessment was correct.  The Court rejected those complaints and in so doing, shows us what constitutes a CDP hearing. Details below the fold.

Click here to see the full article: “Lessons From Tax Court: What Constitutes A CDP ‘Hearing;?

Posted by Mallory Wentz, Associate Editor, Wealth Strategies Journal.

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