The IRS uses a series of notices to collect back tax debt from delinquent taxpayers. While these notices first tell taxpayers of the balances due, they lead increasingly to stronger enforcement action. The IRS uses these notices to warn taxpayers about wage garnishments, bank levies and tax liens. It is a serious mistake to ignore any IRS collection notice. If you have received an IRS collection notice, you should immediately an experienced IRS tax specialist in your local area. These professionals have the experience to examine your circumstances and then develop a suitable tax relief solution for you. It is important to realize that ignored tax problems only worsen and get stressful over time. These tax problems will never go away unless addressed. Below is a descriptive list of the 11 most common IRS collection notices:
CP 14 – Preliminary IRS Collection Notice
This non-urgent notice tells the taxpayer of a past due tax debt.
CP 49 – Notice of Tax Refund Seizure
The IRS takes your tax refund to pay for prior taxes due.
CP 501 – First Notice From Automated Collection System
This is the first urgent notice. Future notices will become more threatening.
CP 503 – Final Notice Before Notice of Intent to Levy
This notice tells the taxpayer about the seriousness of the tax problem and needs immediate action.
CP 504 – Notice of Intent to Levy
This IRS notice is serious. The IRS will seize property once 30 days have elapsed. Wages and bank accounts are the most common.
CP 523 – Notice of Installment Agreement Default
This is another dangerous IRS notice. The IRS is familiar with the taxpayer’s finances. They can easily seize property after 30 days has elapsed.
CP 90 – Notice of Intent to Seize Property
This notice is similar to the CP 504 Notice. Wages and bank accounts are the most common targets.
CP 91 – Notice of Intent to Seize Social Security Benefits
The IRS can seize 15% of benefits. This could lead to financial hardship for taxpayers on a fixed budget.
CP 668 Y(c) — Notice of Federal Tax Lien
The IRS fixes it’s position among your creditors by filing a tax lien at your local county office. The lien gives the IRS an interest in a taxpayer’s property. This can include real estate.
CP 668 A(c) — Notice of Federal Bank levy
The bank will hold your money in escrow for 21 days before they give it to the IRS. The taxpayer should consult with a tax relief specialist immediately.
CP 668 Y(c) — Notice of Federal Wage Garnishment
The IRS can take a significant chunk of your wages.