If you haven’t filed tax returns in years, IRS letters can start arriving fast — and each one sounds more threatening than the last. From CP14 to CP504 to LT11, these notices represent escalating enforcement.
But here’s the truth: you still have time to act. Every IRS notice offers an opportunity to respond, file, and protect yourself — but only if you understand what it means and how to handle it legally.
📘 Official IRS References: Understanding Your IRS Notice or Letter
Why You’re Getting Collection Notices for Unfiled Returns?
Under Internal Revenue Code (IRC) §6020(b), the IRS can create a Substitute for Return (SFR) on behalf of a taxpayer who fails to file a required tax return. The SFR is based on income information the IRS receives from third-party sources, such as employers (Form W-2) and banks (Form 1099).
That process triggers the automated IRS collection notice sequence, which escalates until your account is resolved or your assets are at risk.
The IRS Collection Notice Timeline
| Notice | Purpose |
|---|---|
| CP14 – Balance Due Notice | First notification you owe taxes. |
| CP501 – Friendly Reminder | Second notice reminding you of unpaid tax. |
| CP503 – Urgent Notice | Warns of potential enforcement. |
| CP504 – Final Notice Before Levy | IRS intends to levy your state refund and may begin property action. |
| LT11 / Letter 1058 – Final Notice of Intent to Levy | Legal notice authorizing levy or wage garnishment. |
| Letter 3172 – Notice of Federal Tax Lien Filing | IRS has filed a public lien against your assets. |
📘 Reference: Understanding IRS letters or notices
Your Legal Options When You Receive Collection Notices
1️⃣ File Your Unfiled Returns Immediately
Filing your accurate returns replaces the IRS’s Substitute for Return and resets your standing with the agency.
📘 Reference: Filing Past-Due Tax Returns — IRS
2️⃣ Request a Collection Hold or “Currently Not Collectible” (CNC) Status (If You Qualify)
If you can’t pay due to hardship, you can request CNC status — suspending collection until your finances improve.
📘 Reference: Currently Not Collectible — IRS
3️⃣ Set Up a Payment Plan (Installment Agreement)
Set up a payment plan.
📘 Reference: Payment Plans and Installment Agreements — IRS
4️⃣ File for Penalty Abatement (If You Qualify)
If your unfiled returns were caused by illness, natural disaster, or other reasonable cause, penalties may be removed.
📘 Reference: Penalty Relief Due to Reasonable Cause — IRS
5️⃣ Appeal or Request a Hearing (Form 12153)
If you receive an LT11 or Letter 3172, you have 30 days to request a Collection Due Process (CDP) hearing. This pauses all enforcement actions — no levies, no liens, no seizures — until your case is reviewed.
📘 Reference: Form 12153 — Request for a CDP Hearing
How a Tax Attorney Can Stop Collection Notices?
A skilled tax attorney can intervene at any stage of the IRS collection process to prevent or reverse enforcement.
| Attorney Action | How It Helps You |
|---|---|
| Review IRS Transcripts | Identifies which years are missing and where notices stand. |
| File Unfiled Returns Efficiently | Replaces SFRs and reduces assessed balances. |
| Negotiate Payment Plans / Settlements | Prevents levies and garnishments. |
| Request Collection Holds or CDP Hearings | Stops collection while appeal is pending. |
| File for Lien Withdrawal or Subordination | Protects your property and credit. |
| Penalty Abatement Petitions | Removes or reduces fines and interest. |
📘 References: Form 2848 — Power of Attorney
Need help with a similar issue? Contact our firm today for a consultation.
IRS collection notices don’t mean the end — they mean it’s time to act. Whether you’ve received a CP14, CP504, or LT11, there are always legal steps to stop enforcement, file missing returns, and regain control.
If you’re receiving IRS notices for unfiled tax returns, don’t face them alone. Contact Pelham PLLC — our tax attorneys can stop levies, remove liens, and restore your compliance with minimal penalties.
FAQs
What if I ignore my IRS notices?
Ignoring notices leads to enforced collection — bank levies, wage garnishments, or tax liens. Each notice limits your time to respond.
How can I stop the notices?
File all unfiled returns and contact the IRS or your tax attorney to set up a payment or compliance plan.
Can penalties and interest be removed?
Yes — through First-Time Abatement or Reasonable Cause Relief if you meet IRS criteria.
