If you’re getting scary letters from the IRS, you’re probably wondering: “When do they actually start coming after me? And what does that even look like?”
Many people believe the IRS immediately deducts paychecks and drains bank accounts. In reality, there’s a step-by-step process, and you usually get many chances to fix things before the “big guns” come out.
If you don’t pay your tax bill, the IRS first sends a series of letters asking for payment. If you still don’t respond, they can file a federal tax lien (a legal claim on your property) and later issue a levy (actually taking money from wages, bank accounts, or property). Serious enforcement usually begins after you’ve ignored several notices, including a Final Notice of Intent to Levy, which gives you about 30 days to appeal or set up a plan before they start taking assets.
In this article, I’ll walk you through how IRS collections really work, what each notice means, when enforcement begins, and what you can do to stop or prevent things like liens and levies. We’ll also explore your main options for relief, so you know what to ask for instead of just feeling stuck.
How IRS collections actually start
The IRS collection process doesn’t begin the day you file your return. It starts after the IRS has:
- Figured out how much tax you owe (this is called a tax assessment), and
- Sent you a bill for that amount.
That first bill is usually a CP14 notice. It’s the IRS saying, “You owe this much. Please pay by this date.” If you pay in full at this stage, collection will essentially cease.
If you don’t pay or contact them, the account moves deeper into the collection system.
The typical IRS collection timeline (from first bill to levy)
The IRS follows a pretty standard pattern with most unpaid bills.
Step 1: First bill – CP14
After the tax is assessed, the IRS must send you a Notice and Demand for Payment (often CP14), usually within about 60 days. This is the official start of collections.
At this point, penalties and interest are already accruing, but no levy has been imposed yet.
Step 2: Reminder notices – CP501 and CP503
If you still haven’t paid, the IRS sends follow-up reminders, such as CP501 and CP503. These letters indicate that your account is past due and warn you that further action will be taken if you do not respond.
You can still set up a payment plan or fix any mistakes here with far less stress.
Step 3: CP504 – “Final notice” before levy
Next comes CP504, often labeled “Urgent!” This notice states that the IRS intends to levy certain assets, such as your state tax refund. It’s serious, but it’s not usually the last step before a full wage or bank levy is taken.
Fact: The IRS cannot levy most assets (like wages or bank accounts) based on CP504 alone. They must send a formal Final Notice of Intent to Levy and Notice of Your Right to a Hearing (such as LT11, Letter 1058, or CP90) first.
Step 4: Final Notice of Intent to Levy (LT11 / Letter 1058 / CP90)
This is the big one. A Final Notice of Intent to Levy and Notice of Your Right to a Hearing gives you about 30 days to:
- Pay in full
- Set up a payment plan
- Ask for a Collection Due Process (CDP) hearing (appeal)
If you take no action after this final notice and the 30 days pass, the IRS can begin levying wages, bank accounts, and other assets.
Here’s a simple view of how things usually move:
| Stage | Common notice(s) | What it means | What you should do now |
| First bill | CP14 | Tax assessed; IRS wants payment | Check the amount, pay if you can, or call to discuss |
| Reminder notices | CP501, CP503 | You’re late; penalties and interest are growing | Ask about payment plans or fix any errors |
| “Final” before levy (limited) | CP504 | Intent to levy certain assets | Take action: call, set up a plan, don’t ignore it |
| Final Notice of Intent to Levy | LT11, Letter 1058, CP90 | Levy may begin after ~30 days | Request a hearing or agree immediately |
When does real enforcement actually begin?
Think of IRS collections in two levels:
- Paper pressure – bills and warning letters
- Enforced collection – liens and levies
Federal tax lien: The Government’s Claim on Your Property
A federal tax lien is the government’s legal claim against your property because of unpaid taxes. It can be attached to your home, car, and other assets, and it can negatively impact your credit and make it difficult to borrow.
The IRS usually files a lien (by sending a Notice of Federal Tax Lien) after:
- They’ve assessed the tax
- They’ve sent you a bill
- You haven’t paid by the deadline
This often occurs when you owe more than a specific amount (typically around $10,000, although the threshold can vary).
Info: A lien doesn’t take money from you by itself. It just puts the IRS in line as a creditor and warns the world you owe them money. It’s a big red flag for lenders and buyers.
Levy: When the IRS actually takes money or property
A levy is when the IRS actually takes something:
- Garnishes your wages
- Freezes and takes money from your bank account
- Seizes and sells property like cars or real estate
The IRS can only do this after sending that Final Notice of Intent to Levy and giving you a chance for a hearing.
Danger: If you get a letter called “Final Notice of Intent to Levy and Notice of Your Right to a Hearing” and you ignore it for 30 days, the IRS can start taking money from your paycheck or bank account. Do not wait on this one.
How to stop or prevent IRS enforcement
Good news: The IRS usually wants a solution, not a fight. You have options.
Step 1: Open your mail and act fast
I know it’s tempting to toss those letters in a drawer. Please don’t.
Each notice has a deadline, and the sooner you respond, the more options you have and the less scary it becomes.
Quick Tip: Even if you can’t pay in full, calling the IRS or a tax pro is almost always better than silence. Silence is what pushes you toward liens and levies.
Step 2: Ask for a payment or relief option
Here are common ways to stop or slow collections:
- Installment agreement – A monthly payment plan that allows you to pay over time, rather than all at once.
- Short-term payment plan – Up to 180 days to pay if your balance is under a set amount.
- Offer in compromise – Try to settle for less than you owe if you qualify.
- Currently Not Collectible (CNC) – If you genuinely can’t pay basic bills, the IRS may pause active collections.
Suggestion: If your balance is substantial, your situation is complex, or you’re already facing levy or lien notices, it’s wise to consult with a tax resolution professional who deals with the IRS daily. They can often secure better terms and protect a greater portion of your income and assets.
Extra protections you should know about
You also have rights in this process. For example:
- You can request a Collection Due Process (CDP) hearing after a Final Notice of Intent to Levy or Notice of Federal Tax Lien.
- You can appeal many IRS collection actions.
- In most cases, the IRS has a 10-year collection period from the time the tax is assessed (though certain events can pause that clock).
Warning: Be cautious of scammers pretending to be the IRS, particularly via phone or text. The real IRS normally starts with letters, not threats of immediate arrest or payment by gift card.
Conclusion
So, how do IRS collections actually work, and when does enforcement begin?
First, the IRS assesses the tax and sends you a bill. If you don’t pay, you get a series of notices. If these are ignored, the IRS can file a federal tax lien and then, after issuing a Final Notice of Intent to Levy, begin levying wages, bank accounts, and property. This usually takes months, not days—but real trouble starts after the final notice and the 30-day window has passed.
You’re not powerless here. Opening your mail, calling early, and utilizing tools such as payment plans, offers in compromise, or hardship status can help stop or soften enforcement. And if you feel in over your head, a firm like TLC Action Tax Resolution & Representation can step in, deal with the IRS for you, and help you build a plan to protect your income, your assets, and your peace of mind.
FAQ
How long does the IRS have to collect a tax debt?
In most cases, the IRS has 10 years from the date it assesses the tax to collect it. Some events, such as filing bankruptcy or requesting an offer in compromise or a CDP hearing, can pause (or “toll”) the 10-year clock.
Can the IRS levy my bank account without warning?
Not usually. Before levying, the IRS must send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing and wait about 30 days. If you act within that time—by paying, setting up a plan, or requesting a hearing—you can usually stop the levy.
What’s the difference between a lien and a levy?
A lien is the government’s legal claim on your property because you owe taxes; it doesn’t take money by itself, but it can hurt your credit and affect sales or loans. A levy occurs when the IRS actually takes money or property, such as garnishing wages or seizing a bank account.
What should I do if I receive a final notice of intent to levy?
Do not ignore it. Contact the IRS or a tax professional promptly, and consider requesting a Collection Due Process hearing using Form 12153 before the 30-day deadline. Taking action here is usually enough to stop or delay the levy while you work out a solution.