IRS Fails To Recognize Taxpayer Due Process Rights

The Treasury Inspector General for Tax Administration (TIGTA) conducted an audit for the time period of Oct. 1, 2018 through Sept. 30, 2019, to determine the manner in which IRS Collections issues IRS levies.¹ The audit reported a number of problems. However, before reviewing the results from the TIGTA audit, it is important to understand the applicable rules related to the issuance of a lien or levy. Subsequent to discussing the TIGTA audit results, this blog will also summarize a recent IRS change that impacts the request for a Collection Due Process (CDP) hearing.

The IRS Restructuring and Reform Act of 1998 requires the IRS to notify taxpayers and their authorized representatives of the right to a CDP hearing after the filing of a lien and prior to issuing a levy. Moreover, the IRS is required to suspend levy action during the time frames required pursuant to Internal Revenue Code Section 6330. TIGTA is responsible for annually determining whether the IRS is