IRS Tax Notices When You’re Overdue: What Each Letter Means (and What To Do)
Fell behind on taxes and now the letters are stacking up? This quick guide explains the most common IRS balance-due and collection notices in the order many people see them—plus exactly what to do at each step.
Good news: In most cases you can resolve tax debt without levies or liens if you act quickly. Options include payment plans, hardship pauses, penalty relief, or even settlements (Offer in Compromise), depending on your situation.
The early “you owe” bill
CP14 — First Bill
The IRS says you owe and asks you to pay (generally within ~21 days) or set up a payment plan. If you disagree, contact them. (IRS)
Reminder sequence (escalates if you don’t respond)
CP501 — 1st Reminder
A reminder that you still have a balance due and the IRS hasn’t received your payment or response. (IRS)
CP503 — 2nd Reminder
The IRS still hasn’t heard from you. The notice warns a Notice of Federal Tax Lien may be filed if you continue to ignore the debt. (IRS)
CP504 — Intent to Levy (often your state tax refund)
Final reminder before levy actions begin; the IRS states it intends to levy your wages, bank accounts, or state tax refund if you don’t act immediately. (IRS)
“Final notice” before broader levy (time-sensitive)
These provide your Collection Due Process (CDP) hearing rights—usually 30 days to request a hearing.
LT11 / Letter 1058 — Final Notice of Intent to Levy & Right to a Hearing
The IRS intends to seize (levy) your property or rights to property if you don’t resolve the balance; request a CDP hearing within the deadline if you need to appeal or propose alternatives. (IRS)
CP90 (individuals) / CP297 (businesses) — Final Notice of Intent to Levy & CDP Rights
Similar final levy notices in different formats. They advise of your right to a CDP hearing and outline next steps. (IRS)
If you had a payment plan (installment agreement)
CP523 — Default/Intent to Terminate Your Installment Agreement
The IRS plans to terminate your payment plan and proceed with enforcement (wage/bank levy) unless you take action. (IRS)
What each notice is really saying (and your best next move)
| If you received… | It means… | Best next move |
|---|---|---|
| CP14 | First bill for a balance due. | If correct: pay or set a plan. If not: call to correct. (IRS) |
| CP501 | Reminder: still unpaid. | Set up a plan or contact IRS/CuraDebt to avoid escalation. (IRS) |
| CP503 | Second reminder; lien risk called out. | Act now to prevent a federal tax lien. (IRS) |
| CP504 | Intent to levy (often state refund; may expand). | Urgent: pay/plan/contact before levy begins. (IRS) |
| LT11 / Letter 1058 | Final levy notice + 30-day CDP rights. | File a CDP hearing or propose resolution within the deadline. (IRS) |
| CP90 / CP297 | Final levy notice (individual/business) + CDP rights. | Same: request hearing or resolve within 30 days. (IRS) |
| CP523 | Your payment plan is in default and will be terminated. | Cure the default or restructure your agreement. (IRS) |
Your options (even when the balance feels unmanageable)
- Installment Agreement: Spread payments out monthly; different tiers exist based on amount owed. (Discuss terms you can actually afford.)
- Offer in Compromise (OIC): Settle for less than you owe if you truly can’t pay in full.
- Currently Not Collectible (CNC): If you can’t pay basic living expenses and taxes, the IRS may pause collection.
- Penalty relief/abatement: If you qualify (e.g., first-time abatement or reasonable cause).
- Appeals & CDP hearings: Challenge proposed levies/liens and present alternatives (strict deadlines apply).
- Passport warning (seriously delinquent debt): If you ignore final notices and debt grows, passport actions can come into play; resolve early to avoid that path. (IRS)
Timing matters—here’s how to stay protected
- Open every IRS letter, note the deadline, and keep the envelope (mail date).
- Act within 30 days on final notices (LT11/1058, CP90/CP297) to preserve hearing rights. (IRS)
- Get everything in writing (payment plan confirmations, appeals filings).
- If you already paid but got a bill (CP14), don’t panic—mismatches happen; verify your account and provide proof of payment. (Taxpayer Advocate Service)
How CuraDebt helps (free consultation)
If you’ve received CP504, LT11/1058, CP90/CP297, or CP523, you’re in an urgent window—but you still have options. Our team can:
- Review your notices and transcripts,
- Stop the spiral by identifying with what we believe is the industry’s most thorough investigation, the right resolution (plan, OIC, CNC, appeal),
- Handle calls and filings so you can breathe.
Call (877) 850-3328 or visit CuraDebt Tax Relief for a free, no-pressure review of your notices and best next steps.
Sources
- IRS: Understanding CP14 (first bill). (IRS)
- IRS: Understanding CP501 (1st reminder). (IRS)
- IRS: Understanding CP503 (2nd reminder; lien warning). (IRS)
- IRS: Understanding CP504 (intent to levy; wages/bank/state refund). (IRS)
- IRS: Understanding LT11/Letter 1058 (final levy notice; CDP rights). (IRS)
- IRS: Understanding CP90 (final levy notice; CDP hearing info). (IRS)
- IRS: Understanding CP297 (business final levy notice; CDP rights). (IRS)
- IRS: Understanding CP523 (default/intent to terminate payment plan). (IRS)
- TAS (IRS): Overviews of CP14, CP501, CP503, levy procedures. (Taxpayer Advocate Service)