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IRS Collection Notices

Receiving an IRS collection notice can be a stressful experience, but understanding the purpose and implications of these notices is crucial to effectively manage your tax obligations.

Receiving an IRS notice can be unsettling, but it’s crucial to respond promptly in order to avoid
penalties, interest, or even collection actions. Contact our tax specialist for a consultation.

Examples of Common IRS Collection Notices

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CP14 – First Notice of Balance Due


All IRS notices will include practical instructions on how to proceed and resolve your issue. In
this case, the notice will include instructions on how to make a payment, including online
payment options, as well as how to request an installment agreement if you are unable to pay the
full amount. 


CP501 – Reminder of Balance Due


Notice CP501 is a reminder of a due tax balance. This notice serves as a reminder to individuals
who have previously received a CP14 notice, but have not yet addressed their unpaid balance.


CP503 – Second Reminder Notice


Upon receipt of a CP503 notice, taxpayers should promptly review the details. The notice
includes instructions on making payments, including online options, and offers assistance for
those facing financial hardship.


CP504 – Final Notice and IRS Intent to Levy


This is a final notice of reminder of a balance due.
Failure to take timely action may result in serious financial consequences, including seizure of
assets and garnishment of wages. After issuing this notice, the IRS will seize your state or federal
tax refunds, but they will usually send you another notice before seizing any other assets or
garnishing your wages.


CP523 – Intent to Terminate Installment Agreement


Notice C523 is typically issued when a taxpayer has defaulted on their installment agreement for
a tax debt. It also serves as a notice of intent to levy, if the payment plan is not successfully
recovered.

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CP90 – Intent to Seize Assets and Right to a Hearing


A CP90 notifies taxpayers of the IRS’s intent to levy certain assets for unpaid taxes. It also
informs the recipient of their right to a hearing, known as a Collection Due Process (CDP)
Hearing.
This is obviously a crucial notice from the IRS and signifies the formal initiation of collection
actions in order to recover an unpaid tax debt. It is vitally important that this notice be responded
to timely.


LT1058 – Final Notice of Intent to Levy


This letter is issued if a taxpayer fails to pay their overdue tax balance, arrange a payment
plan, or otherwise communicate with the IRS regarding their due balance. To avoid the levy, you
must contact the IRS to make payment arrangements or get your account marked as uncollectible
before the deadline on the notice.


LT11 – Intent to Seize Your Property


Recipients typically have up to 30 days to respond in order to prevent the levy from being
enacted. Just as with the LT1058, this is vitally important that this notice be responded to timely,
so if you receive one, contact a tax professional like those at McLaud Law P.C. right away to
have your tax issue addressed before the IRS takes collection action and you lose your appeals
rights.


LT16 – Overdue Taxes or Tax Return


This letter concerns overdue taxes or an overdue tax return. Receiving an LT16 notice alerts
taxpayers that they have outstanding tax obligations or unfiled tax returns.


LT17 – Use Online Services to Take Action on Balance Due


IRS Notice LT17 is a request to use IRS online services in order to pay your overdue tax balance.
It outlines the various options you have to pay your tax bill, including online services, which is
the fastest route.


It also outlines the steps you can take if you’re experiencing financial hardship, as well as your
rights to appeal. Ignoring LT17 may result in collection actions being taken against you.

 

Upon receipt of an LT17 notice, taxpayers should consider accessing the IRS’s online portal to
explore available options for resolving their tax debt. 


CP59 – Unfiled Tax Returns


This notice is sent to taxpayers who have failed to file a prior tax return or returns.

 

This communication is Attorney Advertising. It is presented for informational purposes
only and does not constitute legal advice. Every legal situation is different, and prior results
do not guarantee a similar outcome. This communication does not create an attorney-client
relationship between Metuku Law P.C. and the recipient.

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