IRS Collection Actions: Notices, Lien and Levy

Last updated on October 29, 2023

The IRS can use both reminders (notices in the mail) and aggressive collection actions (lien and levy) to collect back taxes. Although initially the IRS only sends notices to individuals to remind them to pay their tax debt, if the notices are ignored or avoided and the debt remains unfulfilled, then the IRS moves on to more aggressive collection actions.

Tax debt notices are sent to inform or remind the individual of the outstanding balance. After these initial notices remain unanswered and the tax debt remains unresolved, the IRS can send the final notice of their intent to levy.

The notice ‘CP 90 Final Notice of Intent to Levy and Notice of Your Right to a Hearing’ is sent to inform the recipient of the IRS’ intent to levy certain assets. If no response is received from the taxpayer after this, the IRS can move forward with a levy.

The best way to avoid a levy is to seek a formal resolution to the back taxes. If a taxpayer cannot pay his or her tax debt, they may consider alternative forms of resolution. As long as IRS notices are simply ignored, the longer the taxpayer runs the risk of being subject to aggressive collection efforts.