How IRS Collections Work (and How to Protect Yourself)

If you’ve ever received a notice from the IRS saying you owe money, you’ve probably felt that sinking feeling in your stomach. Maybe you thought, “I’ll deal with it later” Or maybe you panicked, imagining the IRS cleaning out your bank account overnight.

The truth is… IRS collections is a process — and when you understand that process, you can take back some control. So today, you'll finally learn how IRS collections work

Step 1: The Notice

The IRS doesn’t just show up and start taking your money — they start with a letter.

The first letter (often called a CP14 Notice) tells you:

• How much you owe (tax, penalties, and interest)

• The year(s) it’s for

• When payment is due

If you don’t respond, the notices escalate. Each one gets a little stronger in tone until they send a Final Notice of Intent to Levy — the last step before they can start taking action against your assets.

Step 2: The 30-Day Countdown

Once the IRS sends that final notice, you have 30 days to act before they can:

• Garnish your wages

• Levy your bank account

• Seize other property (in extreme cases)

Here’s the good news: That 30-day window is your opportunity to stop them.

Step 3: IRS Collection Tactics

If you don’t respond within that time frame, the IRS can legally collect the debt. Common actions include:

• Wage Garnishment: Your employer withholds part of your paycheck and sends it directly to the IRS.

• Bank Levy: The IRS freezes your bank account and takes what’s in it (up to the amount owed).

• Tax Liens: A public claim against your property that can hurt your credit and make it harder to sell or refinance.

These actions are designed to get your attention — but they’re also stressful and disruptive.

Step 4: How to Protect Yourself (This is why you learn how IRS collections work)

1. Don’t ignore the letters. The earlier you respond, the more options you have.2. Know your rights. The IRS must follow specific procedures and give you the chance to appeal.3. Get professional representation. When you hire someone like me, you don’t have to talk to the IRS at all — I handle it for you.4. Explore resolution options. This could be a payment plan, penalty abatement, or even a settlement (Offer in Compromise).

The Tea: Why People Get Stuck in Collections

I’ve seen too many good people ignore IRS letters out of fear, hoping the problem will disappear. But with the IRS, silence works against you. By the time the garnishment hits, the damage is done — and fixing it becomes more expensive and more urgent.

The Bottom Line

IRS collections can feel scary, but they follow a process. The earlier you act, the more power you have to protect your income, assets, and peace of mind.

If you’ve received a collection notice, you don’t have to face it alone.

📅 Schedule your confidential FREE tax resolution discovery call and let’s create a plan to stop collections and get you back on track.