Collection feels sudden, but it almost always follows a sequence of letters. Knowing where you are in that sequence tells you how much time you have.
The usual sequence
| Step | Letter | What it means |
|---|---|---|
| 1 | CP14 and reminders | You have a balance due |
| 2 | CP504 | Notice of intent to levy, starting with your state tax refund |
| 3 | LT11 or Letter 1058 | Final notice before levy, with 30 days to request a hearing |
| 4 | Levy | The IRS takes money from your bank account or wages, or other property |
A federal tax lien can be filed at any point after the tax is assessed and you’ve been sent a demand for payment.
What can stop collection
- Paying the balance.
- An installment agreement. Usually requires every return to be filed.
- Currently Not Collectible status if you can’t pay anything.
- A pending Offer in Compromise, which suspends most collection while it’s reviewed.
- A Collection Due Process hearing, requested within 30 days of the final notice.
- A hardship release if a levy is stopping you from meeting basic living expenses.
If a levy is active now
Don’t wait. A bank holds levied funds for 21 days before sending them to the IRS, and a wage levy takes part of every paycheck until it’s released. Get urgent help.