Taxpayers that owe more taxes than they can currently pay can request a Collection Due Process (CDP) hearing, but they must follow instructions. One successful rapper owed past-due taxes of $2,319,678 on which he made monthly payments. When his income fell, he requested a CDP hearing to reduce the payments. At the hearing, he was given a deadline to provide proof of his financial situation and was told to make current estimated payments. He failed to follow the instructions, and his accrued tax debt ultimately rose to over $8 million in outstanding liabilities. The U.S. Tax Court upheld the IRS’s collection procedures, based on his failure to “meet his tax obligations.” (TC Memo 2023-115)
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