Paul L. Caron

Monday, April 11, 2005

Cords on Collection Due Process Hearings

DcordsDanshera Cords (Capital) has published How Much Process Is Due? I.R.C. Sections 6320 and 6330 Collection Due Process Hearings, 29 Vt. L. Rev. 51 (2004).  Here is part of the Introduction:

These hearings and the inflammatory testimony detailing the alleged abuses of the IRS in its collections activities led to reforn of the IRS and its practices, including the creation of a taxpayer's right to a collection due process hearing (CDP hearing) prior to enforced collection....

Part I of this article discusses enforced tax collection generally and then examines the statutory requirements and legislative history of the collection due process provisions....

Part II proposes a model for the conduct of CDP hearings....

Part III demonstrates how the proposed model will further the congressional intent of the CDP provisions to collect taxes, which may have consequences for tax compliance generally. In addition to increasing perceived fairness, the proposed changes should reduce the need for judicial review and increase the meaningfulness of the right to a CDP hearing.

This article concludes that the CDP provisions as currently applied provide few taxpayer rights, require significant administrative and judicial resources, delay the collection of unpaid tax liabilities, and may adversely impact the public's perception of the fairness of the tax system. CDP hearing rights and procedures must be clarified by Congress.

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