The ABA Tax Section has submitted comments to the IRS on Changes to  Collection Due Process Procedures Under Sections 6230 and 6330 (12/27/05) (21 pages).  Here is the Executive Summary:

Collection Due Process (“CDP”) hearings are relatively new procedures enacted into law as part of the Internal Revenue Service Restructuring and Reform Act of 1998 (P.L. 105-206) (the “’98 Act”). Allowing taxpayers the opportunity to propose alternatives to federal tax liens and proposed federal levies is an important right that we believe has a positive impact on tax administration.

However, as the preamble to the proposed regulations indicates, certain taxpayers have used the CDP process to advance frivolous arguments, harass Appeals Division employees and delay collection. While we understand the need to minimize abuse of the CDP process, we are concerned that the proposed regulations may not adequately protect the rights of taxpayers for whom CDP hearings are an important opportunity to open a dialogue with the IRS about more appropriate means to collect tax. Further, we are concerned that portions of the proposed regulations contravene Congressional intent and decisions of the United States Tax Court.

We recommend that the IRS give further consideration to the portions of the regulations discussed in more detail below. Specifically, we recommend that the regulations:

1. Clarify the method for requesting CDP hearings, including by changing Form 12153 and increasing its accessibility to taxpayers (including ESL taxpayers);
2. Permit taxpayers to perfect incomplete CDP hearing requests and to amend complete CDP hearing requests, to assure that all reasonable alternatives to collection are considered;
3. Balance the IRS’s desire to avoid frivolous hearings with the taxpayers’ right to receive a face-to-face conference;
4. Clarify those situations that may lead to Appeals office bias, including ex parte communications;
5. Clarify the scope of the administrative record for judicial review;
6. Conform the scope of judicial review with existing United States Tax Court decisions and Chief Counsel Advice; and
7. Address due process issues arising in connection with joint tax liabilities.

We have included proposed language reflecting many of these recommendations.