Form 12153 is an important document that serves a specific purpose within the context of tax-related matters. Here are a few key points to consider regarding the purpose of Form 12153:
1. Request for a Collection Due Process (CDP) Hearing: Form 12153 is primarily used to request a CDP hearing with the Internal Revenue Service (IRS). A CDP hearing provides individuals or entities with an opportunity to challenge certain actions taken by the IRS, primarily related to tax collection activities.
2. Disputing Levies and Liens: One of the main reasons individuals file Form 12153 is to dispute levies and liens initiated by the IRS. These collection actions can significantly impact a taxpayer's financial situation, and a CDP hearing provides a chance to present their case and potentially find a resolution.
3. Offer in Compromise and Installment Agreement Consideration: Another purpose of Form 12153 is to discuss the possibility of an Offer in Compromise (OIC) or an installment agreement as an alternative solution for tax debt settlement. Through a CDP hearing, taxpayers can request the IRS to review their eligibility for these programs and consider more manageable repayment options.
4. Innocent Spouse Relief: In some cases, individuals may seek innocent spouse relief through Form 12153. This relief is available to spouses who are facing tax-related issues due to the actions or the tax liabilities of their current or former spouse.
5. Appeals and Written Arguments: The form also allows taxpayers to present their appeals and provide written arguments explaining their position on different tax matters during a CDP hearing. It is an opportunity to explain any errors, disputes, or hardships they may face in relation to their tax liabilities.
6. Protection of Rights and Due Process: The primary underlying purpose of Form 12153 is to ensure that taxpayers have the opportunity to assert their rights fully and have a fair and impartial review of their tax case. It promotes due process and acts as a formal means of communication between the taxpayer and the IRS.
It's important to note that while Form 12153 plays a vital role in initiating a CDP hearing, individuals may need to provide additional supporting documents and follow certain guidelines to complete the form accurately. Consulting a tax professional or seeking guidance from the IRS can help ensure the proper completion and submission of Form 12153.