Liens, Levies, and Collection Due Process
Learn the decision pattern the exam can test, then apply it to a realistic taxpayer fact pattern.
What changes the answer?
A notice of federal tax lien and a notice of intent to levy are different actions with different remedies and deadlines.
A tax-practice scenario
A taxpayer receives both notices while proposing an installment agreement. Identify the action, hearing right, deadline, and requested alternative.
Identify the taxpayer, entity, transaction, and tax period first. Write the controlling tests in order, apply only the relevant facts, and keep the reporting result separate from any planning recommendation.
Do not take this shortcut.
Calling every collection notice a levy or missing the CDP request period.
Turn the rule into recall.
Catalog each notice by number, action, tax period, deadline, hearing right, and immediate protection needed.
- ExplainState the governing distinction without notes.
- ApplyChange one fact in the scenario and predict the new result.
- RetrieveAnswer an unseen question, then review every option.
Official source and scope
This lesson follows the current PSI content outline and uses the IRS reference below for the underlying tax or practice framework. Always confirm current forms, instructions, thresholds, and effective dates before advising a taxpayer.