01. International Tax

We provide tailored solutions to complex global businesses doing business in the U.S. Small or multinational, we guide clients through the maze of complex U.S. international tax rules.

02. Offshore Tax Compliance

We assist clients with specialized counsel to fix noncompliance with international tax reporting and penalties. FBAR, forms 8938, 8621, 3520, 926, 5471 and 5472 are among the most common forms that we solve through compliance programs such as streamlined procedures, Voluntary Disclosure Program or the Delinquent International Information Return Submission Procedures (DIIR).

03. Small Business Tax Planning

We assist small and medium businesses with efficient tax structuring to improve efficiencies. Proper tax election, s-corp elections and partnership planning are some of the main solutions offered.

04. Controversy Tax

We guide and represent clients before the IRS including examinations and appeals, as well as represent clients in Tax Court or Federal Courts.

05. Tax Debt Resolution

We help clients to face harsh collection activities, including liens, levies and obtaining a collection alternative such as an offer in compromise, installment payment plans, among others.

06. IRS Criminal Investigations

Our Firm provides representation before IRS Criminal Investigation Division, including Malta Pension Plans and summons.

07. High Net Worth & Family Offices

Assistance with estate planning for select clients and those with cross-border operations, planning for inheritance taxes, and gift taxes in the USA.

08. Start-Ups & Business Tax

No matter how small the idea, we assist clients with the best tax planning and alternatives for their business.

09. Crypto Tax

Our Firm provides tax planning and tax advice on crypto assets and crypto events, including mining, forks, rewards, and disposition/exchange of crypto.

10. BOI Report- Corporate Transparency Act

We assist business owners, CPA and tax preparation firms to file the Beneficial Ownership Information (BOI) report with the FinCEN.

IRS Form 12256: What It Is and What You Should Do

IRS Notices

08.20.2025

Why Form 12256 Deserves Your Attention

When facing aggressive IRS collection actions—such as a Notice of Federal Tax Lien or a Notice of Intent to Levy—taxpayers have the right to request a Collection Due Process (CDP) hearing or, in certain situations, an Equivalent Hearing (EH) with the IRS Independent Office of Appeals.

However, circumstances sometimes change. Perhaps you’ve resolved the issue directly with the IRS or simply decided not to proceed with your appeal. In such cases, Form 12256: Withdrawal of Request for Collection Due Process or Equivalent Hearing becomes relevant. This form enables taxpayers to formally cancel their request for a CDP or EH. Below, we explore what this form does, its legal consequences, and when it’s appropriate to file.

What Does Form 12256 Do?

Form 12256 is the IRS’s official mechanism to withdraw a previously submitted CDP or EH request. Common reasons for submitting this form include:

    • A resolution or agreement such as an Installment Agreement or Offer in Compromise has been reached.
    • The taxpayer no longer wishes to engage in the hearing process.
    • The taxpayer wants to expedite collection action for strategic or practical reasons.

By signing and submitting Form 12256, you waive:

    • The right to a hearing before Appeals.
    • The right to a formal Notice of Determination.
    • The ability to seek judicial review of the lien or levy through the U.S. Tax Court.

Additionally, the Appeals Office will not conduct any procedural or legal review of the collection action once the request is withdrawn.

Legal Implications of Filing Form 12256

Before withdrawing a CDP or EH request, it’s critical to understand the legal and procedural consequences:

    • IRS Collection Resumes Immediately: Levy and lien actions can move forward without delay.
    • The Collection Statute Expiration Date (CSED) Starts Running Again: This clock, which limits how long the IRS can collect a tax debt, resumes.
    • No Further Appeals Review: Once withdrawn, your case won’t be reviewed for potential errors or omissions in the IRS’s handling of your matter.

Importantly, withdrawing your request does not prevent you from pursuing a Collection Appeals Program (CAP) appeal, if otherwise eligible. However, CAP decisions are final and not subject to judicial review.

When Should You Use Form 12256?

Form 12256 may be appropriate when you’ve entered into a binding resolution with the IRS, you’re satisfied with the outcome and want to forgo a hearing, or you want to avoid further delays in collection activity.

Once processed, your case returns to the IRS Collection function. If you’re operating under a payment plan or offer in compromise, strict compliance is critical; timely filings and payments are mandatory.

For offers in compromise, continued compliance is required for five years following IRS acceptance.

Why Taxpayers Should Be Cautious

Form 12256 might seem like a simple exit from a bureaucratic process, but it comes at a cost: the loss of multiple legal safeguards.

Before filing, consider:

    • Are you confident the IRS acted properly?
    • Are the terms of your resolution manageable long-term?
    • Could the CDP hearing offer you procedural protections or relief?

We Can Help!

The withdrawal of a hearing request should only be done when it is clearly in your best legal and financial interest.

At JH Tax Law, we can help you assess whether Form 12256 is right for your situation. Our team provides strategic tax defense solutions tailored to your individual needs. Contact our office for a confidential consultation today.