IRS Collection Appeals Program (CAP) vs. CDP Hearings – What’s the Difference?
Two Powerful IRS Appeal Options—But Only One Stops Collections
When the IRS moves to seize your wages, bank account, or property, you may have the right to appeal. But should you file a Collection Appeals Program (CAP) request—or a Collection Due Process (CDP) hearing?
While both programs are designed to give taxpayers a chance to dispute IRS enforcement, the differences between them are critical—and could determine whether you can stop a levy before it happens.
This post breaks down the key differences between CDP and CAP, when to use each, and how to protect yourself when the IRS comes knocking.
What Is a Collection Due Process (CDP) Hearing?
A CDP hearing is a formal appeal process triggered by final IRS notices, such as:
- Letter 1058 (Notice of Intent to Levy)
- Letter 3172 (Notice of Federal Tax Lien)
You have 30 days from the notice date to file Form 12153 and request a CDP hearing with the IRS Independent Office of Appeals.
Related: IRS Notice of Intent to Levy – Urgent Steps to Take
Benefits of CDP Hearings
- Stops IRS collections immediately
- Gives access to Tax Court review if Appeals disagrees
- Lets you propose alternatives (e.g., settle for less with an Offer in Compromise, Installment Agreement, or pause collections with Currently Not Collectible status)
- Helps you with challenging an IRS audit assessment or proving economic hardship
CDP hearings offer the strongest protection when you're facing imminent enforcement.
What Is the Collection Appeals Program (CAP)?
CAP is a faster, more informal IRS appeal process used when:
- You disagree with a lien, levy, or seizure
- The IRS rejected, modified, or terminated an Installment Agreement
- You missed the CDP deadline but still want to challenge collection
You can request a CAP review by contacting the IRS and submitting a CAP Form (Form 9423).
Key Differences Between CDP and CAP
| Feature | CDP Hearing | CAP Appeal |
|---|---|---|
| Stops collections? | Yes | Possibly (case-by-case) |
| Time to request | 30 days from final notice | Flexible, depending on IRS action |
| Access to Tax Court | Yes | No |
| Used for lien/levy? | Yes (final notices) | Yes (anytime, even pre-notice) |
| Used for IA changes? | No | Yes |
| Legal protections | Strongest | Limited |
This is the more strategic option when facing IRS wage garnishment actions or other serious enforcement threats.
When to Use CDP
Use a Collection Due Process hearing if:
- You received Letter 1058 or a Notice of Federal Tax Lien
- You want to pause all collections while appealing
- You want the option to take your case to Tax Court
This is the more strategic option when stakes are high.
Related: What If You Missed the Deadline to File Your IRS Offer in Compromise?
When to Use CAP
Use the Collection Appeals Program if:
- You missed the CDP deadline but need to appeal IRS action
- The IRS rejected your Installment Agreement
- You disagree with a lien or levy and want a fast resolution
- You’re not eligible for CDP due to timing or prior use
CAP is also used to appeal IRS seizure of property.
Can You Use Both?
In some cases, yes. But typically, you must choose one. If you submit both CDP and CAP requests, the IRS will process only the valid one based on timing and eligibility.
Taxpayers in California should also be aware of California Franchise Tax Board collection actions, which can occur alongside IRS enforcement.
We Help Orange County Taxpayers Navigate IRS Appeals
At Boulanger CPA and Consulting PC, we help clients:
- File effective CDP or CAP appeals
- Stop IRS levies, garnishments, and seizures
- Negotiate better outcomes through the Office of Appeals
- Avoid irreversible enforcement actions
If you want to go deeper into strategies, you can also explore our Defend What’s Yours book for practical guidance.
Call (657) 218-5700 or schedule online at www.orangecounty.cpa
Frequently Asked Questions
What is the IRS Collection Appeals Program (CAP)?
CAP allows you to appeal IRS collection actions such as liens, levies, or rejected installment agreements. It provides a quick review, but once decided, you cannot take the case to Tax Court.
What is a Collection Due Process (CDP) hearing?
A CDP hearing is a formal process where you can challenge IRS collection actions. Unlike CAP, a CDP hearing preserves your right to petition Tax Court if you disagree with the outcome.
Which is faster—CAP or CDP?
CAP is generally faster because it’s designed to quickly review collection actions. CDP hearings take longer but provide stronger legal protections.
When should I request a CAP appeal?
CAP is best when you want to stop or modify an IRS action quickly and don’t anticipate needing Tax Court review. It is often used for levies, liens, or installment agreement disputes.
When should I request a CDP hearing?
CDP hearings are appropriate when you receive a Notice of Intent to Levy or a Notice of Federal Tax Lien. They preserve your Tax Court rights if you disagree with the Appeals decision.
Can I request both CAP and CDP?
No. You must choose one. Once you elect CAP, you waive the right to a CDP hearing and Tax Court review.
How long do I have to file a CDP request?
You generally have 30 days from the date of the IRS levy or lien notice to request a CDP hearing. Missing the deadline limits your options.
Which option gives me more negotiating power?
CDP hearings usually provide more leverage because of the potential for Tax Court review. However, CAP can sometimes resolve issues faster if you just need the IRS to reconsider an action.
📣 About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.
With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.
Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.
Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.
📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.
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