Form 12256

You can submit Form 12256 if you have reached a resolution or agreement with the IRS regarding the tax periods on the CDP/EH hearing request or you are satisfied that you no longer need a hearing with the IRS Independent Office of Appeals (Appeals). By submitting this form, you withdraw your hearing request upon the filing of a Notice of Federal Tax Lien, receiving a levy notice, or both.

By withdrawing a CDP hearing request, you will give up your right to a hearing with Appeals and Appeals will not issue a Notice of Determination with respect to the tax and tax periods subject to your hearing request.  Appeals will not verify that all legal and administrative requirements were met for the periods listed on the original request for a hearing. You will also give up your right to judicial review by the U.S. Tax Court of the Notice of Determination Appeals would have issued as a result of a CDP hearing. When the CDP hearing request is withdrawn, levy action is no longer suspended and the statutory period of limitation for collection, also known as the Collection Statute Expiration Date (CSED) is no longer suspended. The CSED marks the end of the collection period, the time period established by law for the IRS to collect taxes.

If you withdraw your request for a CDP hearing or EH, the IRS will not make a decision on your hearing request; however, you will not give up any other appeal rights that you may be entitled to, such as an appeal under the Collection Appeals Program (CAP). Please note that you cannot go to the U.S. Tax Court if you disagree with the CAP decision.

You have a balance owed on your tax account. The IRS has either issued you a notice of intent to levy with appeal rights or filed a Notice of Federal Tax Lien (NFTL). You have exercised your appeal rights and either made a timely request for a CDP hearing or your request for a CDP hearing was made after the due date for a timely hearing and you were entitled to an EH within the one-year period with Appeals.

You would submit this form if you have reached a resolution or agreement with the IRS regarding the tax periods on the CDP or equivalent hearing request or you are satisfied that you no longer need a hearing with the IRS Independent Office of Appeals (Appeals). By submitting this form, you withdraw your hearing for lien, levy, or both. Your case will be returned to the IRS Collection function.

If you agreed to a collection alternative such as an installment agreement or an offer in compromise, you’ll need to make payments based on your agreement with the IRS. You’ll also need to stay current with your tax obligations — filing your tax returns and paying your taxes timely during the time of the agreement, and if you entered into an offer in compromise, for five years after the IRS accepts your Offer in Compromise (OIC).

When your case is returned to the IRS Collection function, you may want to review information regarding enforcement actions:

• Levies
• Liens

You can also review information regarding collection alternatives and resolutions:

• Installment Agreement
• Offer in Compromise