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Failing to resolve your tax debts can trigger the IRS collection process—an escalating series of notices, levies, and garnishments that can threaten your bank accounts, wages, and property. Understanding each step and taking prompt action can halt collections and restore your financial security.

How the IRS Collection Process Begins

Notice of Balance Due (CP14/Letter 11)

The IRS sends a demand for payment after you file a return with an unpaid balance.

Reminder Notices (CP501, CP503)

If you don’t pay or respond, follow-up notices arrive—each one more urgent, and each adding new penalties.

Final Notice of Intent to Levy (CP504/Letter 1058)

This “Final Notice” warns that the IRS may levy (seize) your assets. You have 30 days to appeal or arrange payment.

Enforced Collection

If you still don’t act, the IRS can garnish wages, levy bank accounts, file a Notice of Federal Tax Lien (NFTL) against property, or seize non-exempt assets.

Common Triggers for IRS Collections

  • Unpaid Tax Balances from prior returns
  • Failure to Respond to IRS notices or correspondence
  • Defaulted Installment Agreements (missed payments)
  • Repeated Late Filings that incur fresh penalties

Even a small unpaid balance can escalate quickly once penalties and interest accrue.

How to Stop or Pause Collections

  • File Any Missing Returns to become compliant
  • Request a Levy Release if you’re suffering hardship
  • Submit a Penalty Abatement for “reasonable cause” or First-Time Abatement
  • Enter an Installment Agreement to break up payments
  • Apply for an Offer in Compromise to settle for less than you owe
  • Qualify for Currently Not Collectible status if you have no ability to pay

For details on settling for less, see our Offer in Compromise page.

Our 5-Step IRS Collections Defense

Free Case Review

We audit your IRS account transcripts and notices—at no cost—to pinpoint your exact balance and collection status.

Lien & Levy Analysis

We identify any levies, wage garnishments, or tax liens attached to your assets and prepare the necessary forms to request immediate release.

Custom Resolution Plan

Based on your ability to pay, we recommend the right relief program: Offer in Compromise, Installment Agreement, or Currently Not Collectible.

Negotiation with the IRS

We submit all applications and negotiate directly with IRS agents to ensure prompt approval and account release.

Ongoing Monitoring & Guidance

After collections stop, we monitor your IRS account so new levies or liens never catch you by surprise—and advise you on future filings to stay in good standing.

Frequently Asked Questions

What triggers the IRS collection process?
What are the key collection notices I may receive?
How can I stop an IRS levy or garnishment?
What is a Notice of Federal Tax Lien and how does it affect me?
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Methods of Contact

Vital for collaboration, support, or information exchange.

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