When a tax bill goes unpaid, the IRS can move from letters to legal action—fast. Here’s what they’re allowed to do, what that looks like in real life, and how to protect yourself today.
- File a Federal Tax Lien (NFTL). Public claim against your current and future property; damages credit and complicates selling/refinancing until resolved. (IRS)
- Levy (seize) money or property. IRS can levy bank accounts (funds present at time of levy are frozen) and garnish wages (everything above an exempt amount based on Pub. 1494 tables). They can also seize and sell certain assets. (IRS)
- Serve a Final Notice to Levy (LT11/Letter 1058/CP90). You have 30 days to request a Collection Due Process (CDP) hearing before most levies. Timing is critical. (IRS)
- Assign a Revenue Officer. Field officers can demand financials (Form 433), issue summonses, and accelerate enforcement if you don’t engage. (IRM Field Collection.) (IRS)
- Certify “seriously delinquent” debt for passport action. State Department can deny or revoke a U.S. passport after IRS certification (you’ll see a CP508C). (IRS)
What This Looks Like in Real Life (From Reddit & Forums)
- Bank account freeze overnight. Multiple threads report accounts suddenly frozen the day the levy hit—funds present at the moment the bank received the levy got locked, and later deposits weren’t touched by that specific levy. (Matches IRS’s own description of bank levies.) (reddit.com)
- “My paycheck is getting garnished—what now?” Wage levies continue each pay period, leaving only the exempt amount; users are told they must set up a payment plan or qualify for hardship (CNC) after filing any missing returns, which aligns with IRS guidance. (reddit.com)
- “They warned me, I ignored it… now they’re taking my wages.” Stories show a pattern: final levy notice → missed 30-day window → employer receives levy → scramble to submit financials (Form 433) to get into IA/CNC or pursue other relief. (reddit.com)
- “In jeopardy of levy after a defaulted payment plan.” Missed installment payments can trigger levy risk notifications; people often learn they must cure the default or restructure quickly. (reddit.com)
Takeaway: the “horror” isn’t random—it’s procedural. Notices → deadlines → enforcement. Acting inside the windows preserves your rights and options. (IRS)
Smart, Fast Moves If You Got a Notice
- Read the code and deadline. LT11/1058/CP90 = levy warning with a 30-day appeal right. CP508C = passport risk. Take the date seriously. (IRS)
- Stabilize collections. Request a stay of enforcement while you submit financials (Form 433) and pursue IA, Offer in Compromise, or CNC—the right fit depends on your budget, assets, and hardship. (IRS)
- Replace “SFR” years and get compliant. If the IRS filed for you, accurate returns often lower balances and enable a plan. (IRS)
Why People Choose CuraDebt (and How We Work)
Our 3-phase process—Investigation → Compliance → Resolution—has helped clients avoid or undo levies, remove active garnishments, and secure outcomes like penalty relief, CNC, installment agreements, and Offers in Compromise. See real case summaries and resolutions on our site (results vary). (CuraDebt)
Ready to protect your paycheck and bank account today?
- Call now: (877) 850-3328
- Or request a review: We’ll read your notice, confirm deadlines, file protection requests, and map the fastest path, starting today. (CuraDebt)