Educational notice: This page explains, in general terms, what a Collection Due Process (CDP) hearing is and why it’s mentioned in certain IRS letters. It is not tax advice and is not affiliated with or endorsed by the IRS.

Collection Due Process hearing explained (What it is and why the deadline matters)

Collection Due Process hearing explained: A Collection Due Process (CDP) hearing is a formal process where you can ask the IRS to review certain collection actions, like a proposed levy (and sometimes lien filing issues), before the IRS moves forward. In plain English, it’s a chance to say, “Please review this collection action and my options,” but the key is that there are deadlines.

This page explains what a CDP hearing is, which letters commonly mention it (LT11, CP90, and Letter 1058), how it fits into the balance-due letter progression (CP14 → CP501 → CP503 → CP504), and why CDP is not the same thing as an audit. Everything here is educational and general.

What Is a Collection Due Process (CDP) Hearing?

A Collection Due Process hearing is a type of administrative hearing with the IRS Office of Appeals. It is generally connected to specific collection notices where the IRS says it intends to take a serious collection step, and you are given a window of time to request a review.

The reason people care about a CDP hearing is simple: it is tied to rights, deadlines, and next steps. When you see CDP language on a letter, it often means the situation is beyond the early “reminder” stage.

Takeaway: A CDP hearing is a formal “review request” process connected to certain IRS collection actions.

Which IRS Letters Commonly Mention a CDP Hearing?

CDP hearing rights are commonly discussed in the context of “final notice” style letters. On your site, these are the pages that relate most directly:

If someone landed on this page because they’re holding a letter and feel lost, your best “start here” page is: What does this IRS letter mean?

Takeaway: CDP hearing language often shows up in late-stage collection notices, not early reminder letters.

How CDP Fits Into the Usual Balance Due Letter Progression

A CDP hearing is usually not mentioned in the first bill. Many people first get a balance due notice, then reminders, then warnings, and later they see “final notice” language.

Common balance due sequence (simplified):

CP14 — first balance due notice (often the first bill)
CP501 — reminder notice
CP503 — stronger reminder
CP504 — warning notice (often mentions levy-related concepts)
Later “final notice” letters (often where CDP rights are discussed)

For the overview of this whole area, see: IRS balance due letters explained

Takeaway: CDP usually appears after the notice chain has escalated beyond routine reminders.

CDP Hearing vs Audit (This Is a Huge Confusion Point)

A lot of people see formal language and assume: “I’m being audited.” But a CDP hearing is about collections and how the IRS plans to collect a debt. An audit is about reviewing your return items (income, deductions, credits).

If your letter made you worry about an audit, this page helps separate the categories: Does an IRS letter mean an audit?

Takeaway: CDP = collections process. Audit = review of your tax return items.

Why “Levy” Is Mentioned Alongside CDP

CDP is often mentioned in letters that involve an “intent to levy” warning. A levy is a collection action that can involve a bank or wages (depending on the situation). If you want the plain-English meaning of levy, start here: What is an IRS levy?

And if someone’s main worry is “what can they take?”, these pages cover the common real-world fears:

Takeaway: CDP is often paired with levy language because it’s part of the late-stage collections discussion.

CDP Hearing vs Lien Topics (Where People Mix Things Up)

Another common confusion is mixing up lien and levy. A lien is a legal claim tied to property. A levy is a collection action.

If you want the clean definitions:

Takeaway: CDP appears in the collections world, which is why lien and levy language often gets discussed near it.

What If Someone Ignores a “Final Notice” Letter?

People sometimes ignore letters because they’re overwhelmed, scared, or not sure what’s real. The problem is that “final notice” letters can come with deadlines and rights that are tied to action steps.

Your site’s plain-English breakdown is here: What happens if you ignore an IRS letter?

Takeaway: Ignoring late-stage letters often reduces options and increases the chance of stronger collection actions later.

How Long Does the IRS Have to Collect? (Why This Comes Up Here)

After CDP hearing language appears, people start asking timing questions. In many cases, the IRS collection period is commonly described as 10 years after assessment (with some situations affecting timing).

Here’s the simple overview: How long does the IRS have to collect a tax debt?

Takeaway: Timing matters in collections, which is why people ask about the collection window when they see CDP language.

Real-World Example (How Someone Lands on This Page)

Someone gets a bill like CP14 and plans to pay “when things calm down.” Then reminders come: CP501 and CP503.

Later, CP504 shows up with stronger language, and after that they receive a final notice style letter (like LT11). That’s when they see “Collection Due Process hearing” language and start searching for what it means.

Takeaway: Most CDP searches happen after multiple letters, when the person realizes the account is in late-stage collections.

Helpful Related Pages

Frequently Asked Questions

What is a Collection Due Process (CDP) hearing?

A CDP hearing is a formal process where you can ask the IRS Office of Appeals to review certain collection actions, often tied to late-stage collection notices. It’s basically a “review request” process, and deadlines matter.

Which letters are most connected to CDP hearing rights?

CDP hearing language is commonly associated with final notice style letters such as LT11, CP90, and Letter 1058. Many people also search for CDP right after reading: Final Notice of Intent to Levy explained.

Is a CDP hearing the same as an audit?

No. A CDP hearing is part of the collections process. An audit is a review of return items. See: Does an IRS letter mean an audit?

Does a CDP hearing mean the IRS already levied my bank account?

Not automatically. CDP hearing language is often connected to “intent to levy” warnings and deadlines. If you’re worried about what a levy can impact, see: bank account and paycheck.

Where does CP504 fit into all this?

CP504 is commonly a warning notice that can mention levy-related concepts. Later final notice style letters are often where CDP rights get discussed more directly.

How long does the IRS have to collect a tax debt?

In many cases, the collection period is commonly described as 10 years after assessment (with some situations affecting timing). See: How long does the IRS have to collect a tax debt?

Should someone get professional help?

If someone needs advice specific to their situation, a licensed tax professional (EA/CPA/attorney) can review the letter and account details. This site is for education, not personalized advice.

This page is for general educational purposes only and does not provide tax or legal advice. WhatThisIRSLetterMeans.com is not affiliated with the IRS or any government agency.