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What Steps to Take After Receiving an IRS Collection Notice of Unpaid Taxes — And How Mike Habib, EA Can Help

August 29, 2025 | Mike Habib, EA

Have you just opened your mailbox to discover a dreaded letter from the IRS demanding payment for unpaid taxes? You’re not alone, and you’re not without hope. This comprehensive, answer-engine-optimized FAQ guide will walk you through the smartest moves you can make from the moment you receive an IRS Collection Notice. It also explains how the specialized tax representation firm of Mike Habib, EA, can be your best ally in resolving tax debts and restoring peace of mind.

What is an IRS Collection Notice and Why Did I Receive One?

An IRS Collection Notice is a formal letter from the Internal Revenue Service stating that you have unpaid federal taxes and demanding payment. If you haven’t paid your full balance of taxes after a return was processed, failed to pay installments on a payment agreement, or were audited and didn’t pay the assessed tax, the IRS will send formal notices seeking payment.

You might receive a notice if:

You underpaid on your tax return or missed payments.
Your account hasn’t been settled following an audit.
The IRS counts penalties and interest against your debt.

What Types of IRS Collection Notices Are There?

Here are the most common types of notices and what they mean for you:

Notice Type	Letter Number	What It Means
Friendly Reminder	CP14	First notice about unpaid tax
Urgent Bill	CP501, CP503, CP504	Escalating reminders, increasing urgency
Intent to Levy	LT11, CP504	IRS is planning to seize assets
Final Notice	L-1058, LT16	Immediate action required to avoid collection actions

Each subsequent notice is more serious than the last. Ignoring any of these letters will not make your tax debt disappear—in fact, it will likely make matters worse.

Understanding IRS Letter 725-B: Notice of Appointment to a Field Revenue Officer for Investigation

July 12, 2024 | Mike Habib, EA

Understanding IRS Letter 725-B: Notice of Appointment to a Field Revenue Officer for Investigation

The IRS Letter 725-B, also known as the Notice of Appointment to a Field Revenue Officer (RO) for Investigation, is a formal communication from the Internal Revenue Service (IRS) indicating that a taxpayer’s case has been assigned to a revenue officer for further investigation. This letter is part of the IRS’s efforts to ensure compliance with tax laws, address back taxes and to resolve outstanding tax issues.

What is IRS Letter 725-B?
The IRS Letter 725-B is sent to taxpayers to inform them that an RO – revenue officer will be handling their case. This letter is typically issued when there are significant tax issues that require in-depth investigation and resolution. The letter will include details about the appointment, such as the date, time, and location of the meeting with the revenue officer.

Call our tax representation firm for immediate help at 1-877-788-2937.

Demystifying the IRS Fresh Start Program: Your Help Guide

June 16, 2023 | Mike Habib, EA

Welcome to our comprehensive FAQ help guide on the IRS Fresh Start Program!

Widely advertised on TV, radio and internet.

Dealing with tax issues can be overwhelming, but the Fresh Start Program is designed to provide taxpayers with a second chance. In this article, we’ll answer your most pressing helpful questions about this initiative, explaining its purpose, eligibility requirements, benefits, and how to apply. Whether you’re struggling with back taxes or facing a hefty tax bill, the Fresh Start Program offers potential relief and a path towards financial stability. So, let’s dive in and shed light on this valuable program.

What is the IRS Fresh Start Program?
The IRS Fresh Start Program is an initiative introduced by the Internal Revenue Service (IRS) to assist taxpayers who are struggling to meet their tax obligations. It aims to provide relief to individuals and small businesses by offering them manageable payment plans and tax debt resolution options. The program encompasses various provisions, including the Fresh Start Installment Agreement, Offer in Compromise, and Penalty Relief.

Contact us for tax representation help today.

Trucking Tax & Accounting by Mike Habib, EA Los Angeles, CA

March 15, 2023 | Mike Habib, EA

As a trucker, filing taxes can be a daunting task. The paperwork, deadlines, and complex tax laws can leave you feeling overwhelmed and uncertain about your tax obligations. However, failing to file your taxes can have severe consequences, including back taxes, penalties, and even legal action. If you are struggling with back taxes, it is essential to seek professional help to avoid further financial hardship.

Back taxes refer to taxes that were not paid in previous years or taxes that were underpaid. In the case of truckers, back taxes can occur due to a variety of reasons, including incorrect reporting of income, failure to file taxes, or errors in tax calculation. The IRS can impose penalties and interest on back taxes, which can add up quickly and result in a significant financial burden.

Get help today, contact our Whittier, Los Angeles, CA firm at 1-877-788-2937.

Tax problem resolution – get tax-iety relief today

February 1, 2023 | Mike Habib, EA

Tax anxiety, TAX-IETY, comes in different forms of tax problems such as:

What is an IRS audit tax-iety?

An IRS audit is a review or examination of an individual’s or organization’s tax return to ensure that the information is accurate and that the tax return is being filed in compliance with the tax laws. If the IRS finds errors or discrepancies in the tax return during the audit process, it may result in an adjustment to the tax liability and possibly additional taxes owed, penalties and interest. The IRS may conduct audits through various methods, including correspondence audits, in which the taxpayer is asked to provide additional documentation by mail, or field audits, in which an IRS agent visits the taxpayer’s place of business or home to review the tax return and related records in person. If you are selected for an IRS audit, it is important to cooperate with the process and provide the necessary documentation to support the information reported on your tax return.

Our Whittier, Los Angeles, CA tax representation firm represents audited taxpayers before the IRS & Appeals, contact us today at 1-877-78-TAXES [1-877-788-2937].

FTB Back Tax Representation – Get Help

November 28, 2022 | Mike Habib, EA

If you were to ask most Californians if they knew what the IRS does, most of them would know exactly what you were talking about. However, if you were to ask the same people if they knew what the California FTB does, I would guess a small number of them would know.

The answer to the question of what the FTB does is? Is quite simple, they are tasked with collecting all of the income taxes assessed by the state of California. The FTB or Franchise Tax Board was created to replace the office of the Franchise Tax Commissioner that was abolished in 1950.

Get FTB help, call our Los Angeles based tax representation firm today at 1-877-78-TAXES [1-877-788-2937].

Back taxes help – IRS-FTB-EDD-CDTFA

November 18, 2022 | Mike Habib, EA

Owing back taxes to the IRS or state FTB, EDD, CDTFA can be overwhelming and stressful. It’s not uncommon for individuals and businesses to fall behind on their taxes due to various reasons, such as financial hardship or a lack of understanding of tax laws. However, ignoring the problem can lead to serious consequences, including wage garnishment, bank levies, and even seizing assets.

If you’re in this situation, it’s essential to seek professional help to resolve your back taxes. A tax professional (EA, CPA, Lawyer) can help you navigate the process, negotiate with the IRS or state on your behalf, and help you get back on track.

Representing High-Income Taxpayers Who Owe Delinquent Back Taxes

March 15, 2021 | Mike Habib, EA

TIGTA identified 685,555 taxpayers who had a balance due as of May 14, 2019. These taxpayers reported adjusted gross income (AGI) of $200,000 or more and owed a combined total of $38.5 billion. Because the IRS prioritizes high balance due cases for collection, many of these high-income taxpayers would be included in high-priority work. However, balance dues are not prioritized by incomes earned and some improvements could be made to prioritize high-income taxpayers more effectively. A separate IRS analysis of 64,317 delinquent tax cases showed that the IRS collected less than 50 percent of tax debt owed by these high-income taxpayers within 52 weeks of assignment to Field Collection. The following chart shows that taxpayers having an average AGI of over $1.5 million paid the IRS an average of 39 percent of what they owe. While 39 percent is more than what the IRS predicted it would collect, these high-income taxpayers still owed over $2 billion.

Average AGI of Taxpayers in This Group Balance Due Actual Recovery Rate Remaining Balance Due $1,563,390 $4,009,955,107 39% $2,442,387,519 $98,289 $1,089,010,998 17% $906,586,760 $24,985 $1,157,135,371 12% $1,014,227,292

Get proper representation by power of attorney 1-877-788-2937.

Backed up Bookkeeping – 5 Tips on Managing Your Accounting

November 2, 2020 | Mike Habib, EA

As any business owner will tell you, there are simply not enough hours in the day, and life as a business owner can be described as ‘busy’ at best.

If you’re running your own business, in Los Angeles, or Orange County, regardless of how large or small your company is, you simply must ensure that you have your books and accounts in order. The IRS doesn’t care about how busy you are, they don’t care about years of backed up bookkeeping, financial worries, or anything else, they simply care about you filing your accurate business tax return annually and paying what you owe.

If you’re busy running a business and, you know, actually trying to have a personal life in the process, you’ll dread tax season as there is mountains of paperwork to sort though, hours upon hours of work involved, and then, for all of your troubles, you get to hand over a large portion of your profits to the IRS. Hooray.

It’s far from ideal, but it’s the way the world turns and if you’re struggling to get your books, records and accounts in order, this article is for you.

Get a free evaluation today 1-877-788-2937.

Offer in Compromise and Coronavirus COVID-19

June 9, 2020 | Mike Habib, EA

IRS has provided updated instructions to taxpayers with respect to the effects of coronavirus – COVID-19 on offers in compromise (OICs).

IRS has the authority to compromise a taxpayer’s tax liability. An OIC is an agreement between the taxpayer and IRS that compromises a taxpayer’s tax debt for less than the full amount owed. IRS will accept an OIC when it is unlikely that the tax liability can be collected in full and the amount offered by the taxpayer reasonably reflects the taxpayer’s collection potential. The goal of an OIC is to collect what is potentially collectible at the earliest possible time and at the least cost to the government.