It can be frightening to receive an IRS notice, particularly a final one. These letters indicate that the Internal Revenue Service is preparing to take collection action to resolve your unpaid taxes. Ignoring them may lead to wage garnishments, seizure of bank accounts, or interception of your state tax refund. Two of the most urgent notices are the CP504 notice and LT11. The notice CP504 warns that the IRS intends to issue a levy on your personal property or other assets. The LT11 serves as a notice of intent to levy, which informs you of your right to request a collection due process hearing under Internal Revenue Code Section 6330.
Understanding these notices, their timelines, and your legal options is essential. The IRS offers payment options such as an installment agreement, an Offer in Compromise, and Currently Not Collectible status. Acting quickly can prevent or stop enforcement. This guide explains each final notice, outlines your rights, and helps you protect your income. Whether you face back taxes, interest charges, or an outstanding balance, knowing how to respond can prevent long-term financial damage and give you control over your tax obligations.
An IRS final notice is a formal communication indicating that the Internal Revenue Service is preparing to begin collection action on your unpaid taxes. These notices follow earlier letters and serve as the final reminder before the IRS takes steps such as levying wages, seizing bank accounts, or filing a federal tax lien.
If your tax debt remains unresolved, the IRS may also intercept your state tax refund or deny the renewal of your United States passport in certain circumstances. Final notices are critical in the collection process and should not be ignored.
Each final notice allows you to respond, dispute errors, or request payment relief. You may be eligible to set up a payment plan, enter an installment agreement, or challenge the proposed collection through a CDP hearing or the collection appeals program.
Understanding the role of a final notice in the IRS process is essential to protecting taxpayer rights and preventing unnecessary collection efforts. Prompt action can help you avoid severe consequences and resolve your tax obligations before enforcement begins.
The CP504 notice is a final notice issued by the Internal Revenue Service when your tax debt remains unresolved. Officially titled “Notice of Intent to Levy,” this letter warns that the IRS intends to seize your state tax refund to cover your unpaid balance. It also serves as a final reminder that failure to act will lead to more aggressive collection efforts.
This notice typically follows several earlier IRS letters. It marks a critical point in the collection process and should not be ignored. While the CP504 notice alone does not authorize the IRS to garnish wages or seize other assets, it is a key step that precedes further enforcement actions, including issuing an LT11 notice or filing a federal tax lien.
If you receive a CP504 notice, respond promptly. Reviewing your tax returns, confirming the accuracy of the notice, and choosing a payment plan that fits your financial situation can help you resolve the issue before further action is taken.
The LT11 notice, also known as Letter 1058, is a final notice from the Internal Revenue Service stating its intent to levy your wages, bank accounts, or other personal property. It is a legally required notification under Internal Revenue Code Section 6330 and marks a critical step in the IRS collection process when a tax debt remains unresolved.
Unlike the CP504 notice, the LT11 grants you the right to request a collection due process hearing. This right allows you to dispute the proposed levy, request a payment plan, or raise concerns about your financial situation. You must respond within 30 days from the date of the notice to preserve this right.
To respond, submit Form 12153 and include relevant documentation. Consider working with a tax attorney or professional if unsure how to proceed. Addressing the LT11 notice promptly can help you avoid wage garnishments, protect other assets, and bring your tax obligations under control.
If you ignore IRS final notices such as the CP504 or LT11, the IRS may initiate enforced collection actions to recover your unpaid taxes. These actions can affect your wages, bank accounts, personal property, and future income. Understanding the potential consequences helps you take proactive steps before enforcement begins.
The IRS can issue a wage garnishment to your employer, requiring a portion of your wages to be sent directly to the IRS. Unlike private creditors, the IRS does not need a court order. The exempt amount you’re allowed to keep is based on your filing status and number of dependents, but it is often insufficient to cover basic living expenses.
The IRS may levy your bank accounts, freezing your funds for 21 days before they are transferred to satisfy your tax debt. You may contact the IRS to arrange payment or request a collection due process hearing during that time.
A federal tax lien is the government’s legal claim to your assets when taxes remain unpaid. It attaches to wages, real estate, and other property and may impact your credit or ability to sell assets.
In certain circumstances, the IRS may also seize other personal property, such as vehicles or rental income. In some cases, Social Security benefits and other income may also be subject to levy.
Payment options such as an installment agreement or consultation with a tax professional can prevent or resolve these actions. Acting promptly after receiving a final notice is the best way to avoid serious collection efforts.
An IRS final notice, such as CP504 or LT11, requires immediate, informed action. These are not initial communications—they follow previous letters and signal that your tax debt remains unresolved. Ignoring them can lead to enforced collection, including wage garnishments or a levy on your state tax refund.
CP504 is a notice of intent to levy your state tax refund and warns of further action. The LT11 includes your right to request a collections due process hearing or, if missed, an equivalent hearing. Both options involve the IRS's Independent Office of Appeals and can delay collection while your case is reviewed.
Please verify that the tax period, liability, and penalties are accurate. If there’s an error, filing an amended return may resolve the issue. Failure to act could result in additional penalties and interest charges.
If you received an LT11, submit Form 12153 promptly. For CP504, call the IRS to explore options like an installment agreement or an Offer in Compromise. Timely action may prevent the filing of a federal tax lien or other collection efforts.
If you’re unsure how to proceed, request a free consultation with a tax professional. You may also qualify for assistance through low-income taxpayer clinics, especially if facing tax court or appeals. These resources ensure you understand the taxpayer bill and can work toward full payment or an appropriate resolution.
A collection due process hearing gives you the right to challenge IRS enforcement actions before they occur. It becomes available after you receive a notice of intent to levy or a notice of federal tax lien, such as the LT11. This hearing was conducted by the IRS Independent Office of Appeals and was based on the Internal Revenue Code Section 6330 rules.
You may request a hearing if you receive:
You must submit IRS Form 12153 within 30 days to preserve your full appeal rights. If the deadline passes, you may request an equivalent hearing, but it does not allow for tax court review.
During a CDP hearing, you can:
You may also assert violations of your taxpayer rights under the taxpayer bill. If approved, most collection efforts are suspended while the case is reviewed.
Low-income taxpayer clinics or a qualified tax professional can help you gather evidence, submit proper documentation, and prepare for the hearing.
You may not make a full payment immediately when you receive an IRS final notice. The IRS offers several payment options and programs to help taxpayers meet their tax obligations based on their financial situation. These arrangements can prevent aggressive collection actions and reduce the risk of additional penalties and interest charges.
An installment agreement lets you pay your tax debt over time through monthly payments. To qualify, you must have filed all required tax returns and remain compliant throughout the agreement. Available options include:
Interest charges and penalties continue to accrue until the outstanding balance is paid in full.
An Offer in Compromise lets you settle your tax liability for less than the total owed. The IRS will review your income, expenses, assets, and ability to pay. Not all taxpayers qualify. You may use the IRS pre-qualifier tool to determine eligibility before applying.
If your financial hardship prevents any payment, you may request a currently non-collectible status. During the temporary suspension of collection efforts, the IRS may file a federal tax lien, and interest and penalties will continue accumulating.
To request a payment arrangement, you must provide supporting documentation, including proof of income, recent tax returns, and any relevant financial hardship statement. You may request a brief extension to pay the debt in full. In certain circumstances
Consulting a tax professional may help you evaluate the most appropriate payment plan based on your financial situation and tax period obligations.
IRS wage garnishment is a serious collection action that can significantly reduce your take-home pay. Fortunately, the law provides several ways to stop or reverse such a levy, especially if you respond quickly and communicate with the IRS. The longer you wait, the fewer options remain available.
Act quickly to minimize the long-term impact on your wages and financial well-being.
Resolving IRS final notices can be challenging, especially when enforcement is underway or your financial situation is complex. Professional guidance can protect your rights, avoid additional penalties, and identify the most effective payment plan or resolution.
You Received a Legal Notice
If you have received a notice of intent to levy, wage garnishment, or a federal tax lien, please contact a tax professional at your earliest convenience. They can help you respond appropriately and stop further collection action.
You Are Requesting a Hearing
Suppose you plan to request a collection due process hearing or an equivalent hearing. Representation can ensure your documentation is accurate and that your arguments are presented to the IRS Independent Office of Appeals.
Your Tax Liability Is Significant
Large debts, multiple tax periods, or unfiled returns may involve complex rules and require negotiation. A tax attorney or enrolled agent can guide you through amended return filings, appeal procedures, or installment agreement requests.
You Need Low-Cost Support
If you qualify, low-income taxpayer clinics offer free consultation and assistance with tax court matters or IRS disputes.
Professional help ensures compliance with IRS procedures and supports a resolution tailored to your financial situation and tax obligations.
Get a brief explanation of IRS notices, wage garnishment, hearings, and payment options. Learn how the state department may become involved in tax-related enforcement or passport restrictions.
The IRS Final Notice CP504 informs taxpayers of an intent to levy their state tax refund. However, it does not offer appeal rights. In contrast, the LT11 serves as a legal notice of intent to levy, granting individuals the right to request a collection due process hearing. Ignoring the LT11 may trigger enforced collection, such as wage garnishment or asset seizure.
The CP504 signals the IRS’s intent only to levy your state tax refund. It does not permit immediate action against wages or bank accounts. The IRS must issue an LT11 or a similar notice for those individuals. Responding before that stage allows taxpayers to explore resolution options and potentially stop further enforcement actions.
You can request a Collection Due Process hearing by submitting Form 12153 within 30 days of receiving an LT11. You may still apply for an equivalent hearing if you miss the deadline. Both options provide a chance to dispute the debt, propose a payment plan, or challenge the proposed levy through the IRS's Independent Office of Appeals.
Address your tax debt promptly to minimize interest charges and additional penalties. You may qualify for penalty abatement if you have a good compliance history or valid reasons, such as serious illness. Interest, however, continues to accrue until the full balance is resolved. Setting up a payment plan quickly helps limit these costs.
Ignoring the LT11 notice eliminates your right to appeal through a collection due process hearing. The IRS may initiate enforced collection efforts such as levies, liens, or wage garnishments. Interest charges and additional penalties will accumulate until full payment is made or another resolution is accepted.
While not required, hiring a tax professional or attorney can help you avoid additional penalties and navigate IRS procedures. They can guide you through filing for a hearing, negotiating a resolution, or requesting relief programs. Low-income taxpayer clinics may assist those who cannot afford legal representation.
Schedule your free, confidential tax relief review today.
Copyright © 2025 Get Tax Relief Now
