Form 12256: How to Withdraw an IRS Hearing Request

Form 12256, titled “Withdrawal of Request for Collection Due Process or Equivalent Hearing,” is a document taxpayers file with the Internal Revenue Service. Its purpose is to formally retract a previously submitted request for a hearing regarding an IRS collection action. When the IRS intends to take action, such as placing a lien on property or levying a bank account, taxpayers have the right to request a hearing to contest it. Filing Form 12256 cancels that pending hearing request, signaling to the IRS that the taxpayer no longer wishes to pursue an appeal through the IRS Independent Office of Appeals.

Deciding to Withdraw a Hearing Request

A taxpayer might choose to withdraw a hearing request for several reasons, most often because the underlying tax issue has been resolved. For instance, if a taxpayer successfully negotiates an alternative with the IRS Collection function, such as an Offer in Compromise (OIC) or an Installment Agreement, the hearing becomes unnecessary.

Another common scenario for withdrawal is when a taxpayer secures the funds to pay the outstanding tax liability in full. This action directly resolves the dispute with the IRS, making the continuation of the appeals process moot. A taxpayer may also re-evaluate their position and conclude that the legal grounds for their hearing are not as strong as initially believed or that proceeding is no longer in their best financial interest.

The decision to withdraw is significant because a Collection Due Process (CDP) hearing provides for an independent review by the IRS Office of Appeals. Taxpayers who miss the 30-day deadline to request a CDP hearing may be offered an Equivalent Hearing (EH), which is similar but does not permit the taxpayer to later petition the U.S. Tax Court if they disagree with the outcome. Form 12256 is used to withdraw either type of hearing request.

Information and Instructions for Completing Form 12256

Before filling out Form 12256, a taxpayer must gather specific information to ensure it is completed accurately. This includes the taxpayer’s full name, current address, and their Taxpayer Identification Number (TIN), which is typically a Social Security Number for individuals. It is also necessary to have the specific tax form numbers related to the collection notice, such as Form 1040 for individual income tax, and the precise tax periods in question.

The form requires the taxpayer to identify the type of tax involved, for example, income or employment tax. The taxpayer must check a box to indicate whether they are withdrawing a request for a Collection Due Process (CDP) hearing or an Equivalent Hearing (EH).

The form asks the taxpayer to specify whether the withdrawal applies to a Notice of Federal Tax Lien, a Notice of Intent to Levy, or both. The taxpayer or their authorized representative must sign and date the form. By signing, the individual affirms that they are voluntarily withdrawing their hearing request and understand the consequences of this action.

The Submission Process and What Happens Next

Once Form 12256 is fully completed and signed, it must be submitted to the correct IRS office. The form should be sent directly to the IRS Independent Office of Appeals employee or office handling the case. Taxpayers can find the correct mailing address on the correspondence they have received from the Appeals office regarding their hearing request. Sending the form to a general IRS address or the wrong department can lead to significant processing delays.

The submission of Form 12256 is considered a final action that terminates the appeals process for the specified tax liabilities and periods. Upon receipt, the IRS will close the hearing case and the temporary hold on collection activities, which was put in place by the hearing request, will be lifted. This allows the IRS to immediately resume collection actions, which can include levying bank accounts or wages, or proceeding with the seizure of assets.