What Happens If I Ignore the IRS?

Quick Answer

Ignoring the IRS leads to escalating enforcement actions: penalties and interest accumulate, then automated collection begins, followed by tax liens, and finally levies on your wages, bank accounts, and property.

Detailed Explanation

The IRS follows a predictable escalation pattern when taxpayers don't respond to notices. It starts with billing notices (CP14, CP501, CP503) that give you opportunities to pay or set up arrangements. If ignored, you'll receive a CP504 (Intent to Levy), then a Final Notice (LT11 or CP90) giving you 30 days before enforcement. After that, the IRS can file a tax lien (affecting your credit and property), garnish wages (up to 70% of your paycheck), levy bank accounts (freezing and seizing funds), and even seize property in extreme cases.

Key Points to Remember

  • Penalties add 25% or more to your original debt
  • Interest compounds daily on unpaid balances
  • Tax liens damage credit and attach to all property
  • Wage garnishments can take up to 70% of your paycheck
  • Bank levies freeze accounts with only 21 days to respond

Timeline

Enforcement typically begins 4-6 months after first notice if ignored

Related Resolution Options

Related IRS Notices

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