These letters are sent to you as part of the (CDP) or Equivalent Hearing requests.  These letters are in response to your timely  completion and submission of Form 12153, Request for a Collection Due Process or Equivalent Hearing. This letter is sent when a CDP and/or Equivalent Hearing was submitted based frivolous position or a desire to delay or impede federal tax administration. Appeals is providing you with 30 days to either perfect the request or withdraw the request to avoid a possible penalty.  If you do not amend or withdraw the request for CDP and/or Equivalent Hearing, Appeals will disregard your request and return your case to Collections. A $5,000 penalty may also be assessed.

See Publication 1660, Collection Appeal Rights, for a full explanation of the CDP process.

You owe tax and did not pay the liability. You timely completed and submitted Form 12153 because you did not agree with the collection efforts taken. Generally, a CDP or EH will stop enforcement action from proceeding your appeal is pending.

When you filed the request, you based your request on a frivolous position or a desire to delay or impede federal tax administration.

The letter will have instructions on how to respond and the date by which to respond.

You should timely respond by amending your request to include a relevant issue or withdrawing the frivolous/delaying/impeding issue from appeal. You should be prepared to explain why you disagree with the collection action and propose a collection alternative or remedy for satisfying the tax liability or lien release. You should have substantiating documentation of any issues you wish to discuss, including proof of current income and expenses.