IRS Form 12256: Withdrawing a Hearing Request

IRS Form 12256, “Withdrawal of Request for Collection Due Process or Equivalent Hearing,” is a document used by taxpayers to formally cancel a pending appeal with the Internal Revenue Service. When the IRS initiates collection actions, such as filing a lien or issuing a levy, taxpayers have a right to request a hearing to contest the action. Submitting Form 12256 officially retracts that request and signals to the IRS that the taxpayer no longer wishes to pursue their appeal through the IRS Independent Office of Appeals. Filing this form is a final action that carries legal consequences.

The Purpose of Withdrawing a Hearing Request

A Collection Due Process (CDP) hearing is a right granted to taxpayers, allowing for an independent review by the IRS Office of Appeals before the agency can proceed with seizing assets through a levy or encumbering property with a Notice of Federal Tax Lien. For taxpayers who miss the 30-day deadline to request a CDP hearing, the IRS may grant an Equivalent Hearing (EH). While similar, an EH does not allow the taxpayer to later petition the U.S. Tax Court if they disagree with the outcome. Form 12256 is the tool used to formally withdraw a request for either of these hearings.

A primary reason for withdrawal is the resolution of the underlying tax issue. For instance, a taxpayer may successfully negotiate an alternative solution with the IRS Collection function, such as an Offer in Compromise (OIC) or an Installment Agreement, making the hearing unnecessary. In other cases, a taxpayer might acquire the funds to pay the tax liability in full, thereby resolving the dispute. Submitting the form signals that the taxpayer no longer requires intervention from an impartial hearing officer.

Completing Form 12256

The form requires precise information to be valid. The taxpayer must enter their full name, address, and Taxpayer Identification Number (TIN), which is a Social Security Number for individuals or an Employer Identification Number for businesses. This information should match what is on file with the IRS.

You must also identify the tax form numbers related to the debt, such as Form 1040 for individual income tax or Form 941 for an employer’s quarterly federal tax return. The exact tax periods or years in question must be clearly listed. This information can be found on the original collection notice, like a “Notice of Intent to Levy and Your Right to A Hearing,” or on the taxpayer’s copy of their initial hearing request, Form 12153.

A key step is checking the correct box to indicate whether the withdrawal applies to a CDP hearing or an Equivalent Hearing. The form also requires you to specify if the hearing was requested in response to a lien, a levy, or both. The form must be signed and dated by the taxpayer or their authorized representative holding a valid Form 2848, “Power of Attorney and Declaration of Representative.” For joint filers, both spouses need to sign if the tax liability is shared.

Submission and Consequences

Once Form 12256 is completed and signed, it must be submitted to the correct IRS office. This is the IRS Independent Office of Appeals location that was handling the case, and the address can be found on correspondence received from that office. Sending the form to the wrong department can cause delays.

The consequences of submitting Form 12256 are immediate. Filing this form is a final action that terminates the appeals process for the specified tax periods. By signing it, the taxpayer gives up their right to have an Appeals officer review their case and issue a Notice of Determination. This means the temporary hold on collection activities is lifted, and the IRS can proceed with actions like levying bank accounts or filing a Notice of Federal Tax Lien.

A primary consequence is the forfeiture of judicial recourse. A right associated with a timely CDP hearing is the ability to petition the U.S. Tax Court if the taxpayer disagrees with the Appeals hearing outcome. By withdrawing the CDP hearing request via Form 12256, the taxpayer permanently gives up this right. While decisions from an Equivalent Hearing cannot be taken to Tax Court, an exception exists for innocent spouse relief claims. If this issue is raised, the determination on that claim can be appealed to the Tax Court.