Friday, April 29, 2011

IRS Request Withdrawal of Collection Due Process Hearing - Before the Hearing

Recently in letters from IRS Appeals advising the taxpayer that a hearing has been scheduled, the IRS is enclosing Form 12256, WIthdrawal of Request for Collection Due Process or Equivalent Hearing. We do not understand the purpose of enclosing this form. It is confusing to the taxpayer. The cover letter from Appeals states:



"If you no longer want to pursue the CDP Hearing, I have enclosed Form 12256 for you to sign and withdraw your request. You can fax or mail this back to me prior to the deadline date".

We see no reason for the IRS to include this form. Appeals can certainly discuss a withdrawal with the taxpayer during the hearing. It seems that Appeals should be trying to help the taxpayer, rather than seeking a withdrawal of the hearing request before the hearing takes place. While it is only page, we doubt that many taxpayers sign it. Therefore, it is just a waste of taxpayers’ money.

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