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.