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IRS Notices

Collections Letter

IRS Collections Letter - What to Do

An IRS collections letter warns you that the agency is escalating efforts to collect your tax debt. Response is critical to avoid levy and garnishment.

Contact the IRS or request a hold immediately to prevent collection action from escalating.

What Is an IRS Collections Letter?

  • Escalation warning: Collections letters signal the IRS is moving from notices to active enforcement
  • Demand for response: These letters demand you contact the IRS or arrange payment within a specific timeframe
  • Precursor to final notice:Collections letters lead to CP504/LT11 if you don't respond
  • Window to prevent levy: Responding to a collections letter can stop the escalation to final notice and collection

Collection Escalation Sequence

The IRS follows a specific process before collection enforcement. Understanding where you are helps you know what's coming:

  1. Initial notice (CP90, CP91): First tax assessment and collection warning
  2. Collections letter: Escalated demand—you are here, action required now
  3. Final notice (CP504/LT11): 30-day deadline before levy or garnishment
  4. Collection action: Bank levy, wage garnishment, or property seizure begins

A collections letter is your last chance to stop this sequence before final notice arrives.

How to Respond to Collections Letter

  1. 1

    Don't Ignore It

    Ignoring this letter guarantees CP504/LT11 and levy. This is your last warning before collection action.

  2. 2

    Contact the IRS or Tax Professional

    Call the number on the letter or work with a tax professional to discuss your options.

  3. 3

    Arrange Payment or Payment Plan

    Pay if you can, or negotiate a payment plan. Either option stops the escalation.

  4. 4

    Request a Hold If Needed

    If you need time or are in hardship, request a hold while you arrange a solution.

Need Immediate Help?

Our tax professionals can contact the IRS today and request a hold on collections while we review your situation.

Request a Hold Now

No obligation. We will review your case and contact you.

Call (310) 598-3759

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