EDITION · NOVEMBER 2026
PA R T O N E O F T W O
The
IRS Survival Guide Part One
Notices, levies, liens, and ways to pay.
CP14
C CP501CP503P504
Notic e inten of t to le vy
RESPO ND
OPEN IT. READ THE NUMBER.
Which notice did you get? A one-page map of the IRS letter sequence
Bank and wage levies The 21-day hold, the three-day form, and release rules
Federal tax liens A claim, not a seizure, and how a lien can come off
Payment plans The fees on IRS.gov, checked November 2026
Offers in compromise Settling for less, if you qualify
Part Two Hardship, spouses, penalties, and your rights
Darrin T. Mish
Tampa tax attorney · Law Offices of Darrin T. Mish, P.A.
General information, not legal advice. Attorney advertising.
Law Offices of Darrin T. Mish, P.A. | (813) 229-7100 | getirshelp.com
A N OT E B E F O R E YO U S TA R T
If an IRS envelope is on your table, start here.
I
f you picked this up, there's a good chance an IRS envelope is sitting somewhere in your house
INSIDE THIS PART
Which notice did you get?
3
notice number in the corner. It tells you where you are
The notice decoder
4
in the process and what the IRS is asking of you.
Bank levies
5
IRS collection follows rules. Most steps come with a
Wage levies
6
written notice first, and many come with a deadline
Federal tax liens
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Payment plans
8
Offers in compromise
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right now, maybe still sealed. Open it. Find the
and a right to appeal. Those rights are there for you to use, but they only help while the window is open. This part covers the notices, the tools the IRS uses to collect, and two of the options the law gives taxpayers: payment plans and offers in compromise. Part Two covers Currently Not Collectible status, innocent spouse relief, the trust fund recovery penalty, your rights, and the rest. Every rule in it comes from IRS.gov, the Internal Revenue Code, the Internal
IN PART TWO
Currently Not Collectible, innocent spouse relief, the trust fund recovery penalty, your rights, myth vs. truth, what to gather, deadlines, and official sources.
Revenue Manual or the Taxpayer Advocate Service. The sources page in Part Two shows where to check. What a guide can't do is look at your situation. Two people holding the same notice can have very different options. Use these pages to understand where you
"The notice number in the corner tells you where you are."
stand and what to ask, and always go by the dates and phone numbers printed on your own notice. If you're dealing with the IRS, call (813) 229-7100 or visit getirshelp.com.
Darrin T. Mish
Tax attorney, Law Offices of Darrin T. Mish, P.A., Tampa, Florida
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General information, not legal advice. Attorney advertising.
MAP
S TA R T W I T H T H E N U M B E R I N T H E C O R N E R
Which IRS notice did you get? Balance-due notices tend to come in a sequence, and each step raises the stakes. Find yours, then read the box to its right and the decoder on the next page.
1
CP14 You owe a balance Pay by the due date, set up a payment plan, or contact the IRS if you disagree. Interest builds on what's unpaid after that date.
2
CP501 Reminder No payment or reply yet. If you don't act, the IRS can file a Notice of Federal Tax Lien.
3
CP503 Second reminder Still unpaid. A lien notice may be filed if one hasn't been already.
4
CP504 Notice of intent to levy Unpaid 30 days after the notice date, your state tax refund can be levied. The IRS can also start looking for other assets. Respond now.
CP2000 Proposed changes Income reported by employers or banks doesn't match your return. This notice isn't a bill. Reply by the date listed and say whether you agree, with your documents. If you agree, the IRS can assess the change and bill you. If you don't reply, or the issue can't be resolved, the IRS generally must first send a notice of deficiency (CP3219A), which gives you the right to go to the U.S. Tax Court by the date listed. Only after the tax is assessed does a bill put you on the balance-due track.
CAN HAPPEN ALONG THE WAY
L3172 Lien notice filed CP501, CP503 and CP504 all warn that the IRS can file a Notice of Federal Tax Lien. If it does, Letter 3172 tells you so and explains your right to a hearing. Ask for it by the deadline in the letter. Miss that, and you may still get an equivalent hearing within one year of the notice date. ON A PAYMENT PLAN?
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LT11 · L1058 · CP90
Final notice: your right to a hearing
Request a Collection Due Process hearing on Form 12153 by the deadline printed on the notice.
6
CP523 Plan in default The IRS intends to end your installment agreement and collect. Pay before the termination date on the notice, and contact the IRS no later than 30 days from the notice date to ask about reinstatement. You can appeal a termination you disagree with.
LEVY The IRS can take property Wages, bank accounts, business and personal assets, Social Security benefits and state refunds can be levied.
Not everyone gets every notice, and timing varies. Go by the notice you actually received and the date and phone number on it. Sources: IRS "Understanding your notice" pages for CP14, CP501, CP503, CP504, LT11/Letter 1058, CP90, CP523, CP2000 and CP3219A; TAS pages for CP504 and Letter 3172; IRC § 6213(a).
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General information, not legal advice. Attorney advertising.
DECODER
W H AT E AC H N OT I C E M E A N S
The notice decoder What the IRS says each letter means, what it asks you to do, and what can come next if nothing changes. NOTICE
WHAT IT MEANS
WHAT TO DO
WHAT CAN COME NEXT
CP14
You owe money on unpaid taxes.
Pay by the due date, set up a payment plan if you can't pay in full, or contact the IRS if you disagree.
No interest if you pay in full by the date on the notice. After that, interest accrues, and a late-payment penalty can apply.
CP501 Reminder
The IRS hasn't received payment or a reply to the last notice.
Pay, set up a plan, or call if you disagree. You may be able to ask for a Collection Appeals Program (CAP) appeal by following the notice.
A Notice of Federal Tax Lien can be filed. Interest and penalties keep adding up.
CP503
Still no payment or reply.
Pay, apply for a plan online, mail an installment agreement request, or call if you disagree.
A lien notice may be filed if one hasn't been already.
CP504
Your Notice of Intent to Levy under IRC § 6331(d). The IRS says it will also start looking for other assets to levy.
Pay now, or pay what you can and call the number on the notice. The IRS says its online payment agreement tool is the fastest way to get a plan approved.
Your state tax refund can be levied if the amount isn't paid within 30 days of the notice. For most other levies, the IRS generally sends a hearing-rights notice first, unless you already got one.
LT11 / Letter 1058
Final notice of intent to levy, with your right to a Collection Due Process (CDP) hearing.
Pay, ask for a plan, or request a CDP hearing on Form 12153 by the deadline on the notice. See Publications 594 and 1660.
Levy on wages and other income, bank accounts, business assets, your car and home, Social Security benefits and state refunds.
CP90
The IRS intends to levy certain assets and is telling you about your right to a CDP hearing.
Pay, ask for a plan, or request a CDP hearing on Form 12153.
A levy. The hearing is your chance to appeal the intent to levy and raise other issues.
Letter 3172
The IRS has filed a Notice of Federal Tax Lien, and you have a right to a hearing under IRC § 6320.
Request a CDP hearing by the deadline in the letter. Missed it? An equivalent hearing may be available within one year of the notice date, but generally without a path to Tax Court. Form 9423 asks for a CAP appeal.
The lien stays until the balance is paid, the time to collect runs out, or an accepted offer in compromise is paid off. The lien is generally released within 45 days after the final offer payment is received and verified.
CP523
The IRS intends to terminate your installment agreement and levy because the agreement is in default. The notice gives the reason.
Pay before the termination date. Call no later than 30 days from the notice date to ask about reinstatement. A reinstatement fee may apply. You can appeal.
Termination, then collection, which can include a lien or a levy on wages or bank accounts.
CP2000
Income or payment information from third parties doesn't match your return. It isn't a bill.
Reply by the date listed. Sign the response form, say whether you agree, and include documents.
If you agree, a bill. If you don't reply or it can't be resolved, generally a notice of deficiency (CP3219A) with Tax Court rights, then a bill once the tax is assessed.
Balance due
Second reminder
Intent to levy
Final notice Intent to levy
Lien filed
Plan in default
Proposed changes
Sources: IRS.gov "Understanding your notice" pages (CP14, CP501, CP503, CP504, LT11/Letter 1058, CP90, CP523, CP2000, CP3219A); IRS Collection Due Process FAQs; TAS pages for CP504 and Letter 3172; IRS sample Letter 3172; IRC § 6213(a). All checked November 14, 2026.
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General information, not legal advice. Attorney advertising.
01
BANK LEVIES
When the IRS levies your bank account The money is frozen when the bank receives the levy. Then the law gives you 21 days before the bank sends it. How it works A levy is a legal seizure of your property to pay a tax debt. A bank levy is generally delivered by mail, and it's considered made at the date and time it's delivered. Funds in the account are frozen as of the moment the bank receives it. The bank then has to wait 21 days before it sends the money (IRC § 6332(c)). The IRS says that wait is meant to give you time to contact it and arrange to pay, or to point out errors in the levy. Normally, the levy doesn't touch money you deposit after that date. A wage levy is different: it keeps taking part of each paycheck (page 6). If the levy causes a hardship The law treats hardship as a required release ground for any levy, bank or wage. Once the IRS determines that a levy is creating an economic hardship for an individual, meaning it leaves you unable to pay basic, reasonable living expenses, the IRS must release it (IRC § 6343(a)(1)(D); IRM 5.11.2.3.1.4). The catch is that the IRS makes that determination from the financial information you give it, so release is not automatic. Give complete, accurate information as early as you can, ideally before the 21-day hold ends. If the money isn't yours If the levy is for your tax debt but you are only a signer on someone else's account, such as a parent's, the account owner or their power of attorney should call the number on Form 668-A and be ready to show the money is theirs.
21
days the bank holds levied funds before sending them to the IRS
INSIDE THE 21 DAYS
Call the phone number on the levy or IRS letter and explain your situation. Have your financial information ready. Have the bank's fax number handy so the IRS can act quickly. Ask what arrangements are available, such as a payment plan.
"A release stops the levy. It doesn't cancel the debt." IRS: A LEVY MAY BE REISSUED IF YOU DON'T MAKE ARRANGEMENTS Sources: IRS, Information about bank levies; IRS, What if a levy is causing a hardship?; IRS, How do I get a levy released?; IRS, What's the difference between a levy and a lien?; IRC §§ 6332(c), 6343(a)(1)(D); IRM 5.11.2.3.1.4. Checked Nov. 14, 2026.
Bank fees from an IRS mistake If the IRS levied after the tax was fully paid and your bank charged fees, Form 8546 asks the IRS to reimburse them, if certain conditions are met.
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Law Offices of Darrin T. Mish, P.A. | (813) 229-7100 | getirshelp.com
General information, not legal advice. Attorney advertising.
02
WAG E L E V I E S
When the IRS levies your paycheck People call it garnishment. The IRS calls it a wage levy, and it keeps going every pay period until something changes.
It doesn't stop on its own Once the IRS levies your wages, part of each paycheck goes to the IRS every pay period until you make other arrangements, the debt is paid, or the levy is released. Part of your pay is exempt The exempt amount is based on your standard deduction and an amount tied to the number of dependents allowed for the year the levy is served. The IRS mails Publication 1494 with the levy, and your employer uses its tables to figure how much you keep. The three-day form Your employer will give you a Statement of Dependents and Filing Status. Return it within three days. If you don't, your exempt amount is figured as if you were married filing separately with no dependents. If you have other income The IRS may assign your exemption to another income source and take 100% of your pay from one employer. Child support If a court ordered child support before your employer got the levy, call the IRS at the number on Form 668-W. The IRS will release the amount needed to pay that support, and that child can't also count as an exemption. Hardship If the IRS determines a wage levy is creating an immediate economic hardship, the levy must be released. Call the number on the levy right away, be ready to share your financial information, and have your employer's fax number handy.
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3
days to return the Statement of Dependents and Filing Status
Miss it, and the exemption is figured at married filing separately with zero dependents.
E AC H PAY P E R I O D
You keep
To the IRS
You keep
To the IRS
You keep
To the IRS
Until: other arrangements, paid in full, or released Illustration only. Pub. 1494 sets the actual split.
"Return the form within three days." Sources: IRS, Information about wage levies; IRS, What if a levy is causing a hardship?; Publication 1494 (Rev. 12-2025). Checked Nov. 14, 2026.
General information, not legal advice. Attorney advertising.
03
F E D E R A L TA X L I E N S
A lien is a claim, not a seizure A lien doesn't take anything. It attaches the government's claim to what you own now and to what you acquire while it's in place.
Lien
A legal claim against your property that secures the tax debt. The Notice of Federal Tax Lien is a public record.
Levy
Actually takes the property to pay the debt. A levy is not a public record.
When a lien exists A federal tax lien exists after the IRS puts your balance on the books, sends you a bill, and you neglect or refuse to pay in time. The IRS then files a public Notice of Federal Tax Lien to alert creditors. How it can affect you It attaches to all your assets, and to assets you acquire while the lien lasts. For a business, it reaches business property, including accounts receivable. Once the notice is filed, it may limit your ability to get credit. The Taxpayer Advocate Service notes lien notices no longer appear on credit reports, but lenders can still find them in public records. The debt, lien and notice may continue after a bankruptcy. Getting it released Paying in full is the best way. The IRS releases the lien within 30 days after you pay. The Taxpayer Advocate Service lists three release events: the balance is paid in full, the IRS's time to collect expires, or the IRS accepts an offer in compromise. For an accepted offer, Form 656 says the lien for the periods in the offer will generally be released within 45 days after the final offer payment is received and verified.
OTHER WAYS TO SOFTEN A LIEN
Discharge removes the lien from a specific piece of property (Publication 783). Subordination keeps the lien but lets another creditor move ahead of the IRS, which can help with a loan or mortgage (Publication 784). Withdrawal removes the public notice, though you still owe the tax (Form 12277). Direct debit route: withdrawal may be possible if you're a qualifying taxpayer (individuals, businesses with income tax debt only, and out-of-business entities), you owe $25,000 or less, your direct debit plan pays in full within 60 months or before the collection deadline, whichever is earlier, you've made three straight direct debit payments, you're otherwise compliant, and you haven't defaulted on a direct debit plan. GOT LETTER 3172?
It means the lien notice was filed. Request a hearing by the deadline in the letter (Form 12153). Routine lien questions: Centralized Lien Operation, 800-913-6050. Sources: IRS, Understanding a federal tax lien; IRS, Lien vs. levy; TAS, Letter 3172; IRS sample Letter 3172; Form 656-B (Rev. 4-2026). Checked Nov. 14, 2026.
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04
PAY M E N T P L A N S
Payment plans: what they cost right now These are the fees and limits on IRS.gov as checked November 14, 2026. The IRS changed some of them on July 5, 2026, and they can change again. Confirm at IRS.gov before you apply. PLAN
APPLY ONLINE
PHONE, MAIL OR IN PERSON
LOW-INCOME
Short-term Pay in 180 days or less
$0
$0
Penalties and interest accrue until paid in full.
Long-term, direct debit Automatic monthly payments from your bank
$29
$107
Setup fee waived.
Long-term, other payment Direct Pay, EFTPS, check, money order or card
$69
$178
$43, which may be reimbursed if certain conditions are met.
Change an existing plan
$6
$89
$43 by phone, mail or in person; may be reimbursed. Changes to a direct debit plan: $0.
Reinstate after default
$6
$89
$43.
Card payments carry the processor's own fees. Low-income, for these fees, means individuals with adjusted gross income at or below 250% of the federal poverty level. Form 13844 asks for the reduced fee if the IRS doesn't flag you automatically. It doesn't apply to corporations or partnerships.
Who can apply online
KEEPING A PLAN OUT OF DEFAULT
Short-term: individuals who owe less than $100,000 in combined tax, penalties and interest. Long-term (Simple Payment Plan): individuals who owe $50,000 or less and have filed all required returns. Sole proprietors and independent contractors apply as individuals. Businesses can't apply online. Call the number on the notice or 800-829-4933.
Pay at least the minimum monthly payment when it's due. File all required returns on time and pay new taxes in full and on time. Expect future refunds to be applied to the debt, and keep making payments anyway. Penalties and interest continue until the balance is paid. Got a notice of intent to terminate? Contact the IRS right away.
Simple Payment Plans No financial statement, lien determination or trust fund penalty determination required. Limits: $50,000 for individuals; $25,000 for businesses with trust fund taxes ($50,000 for an out-of-business sole proprietor); $50,000 for businesses without them. You must be current on all filing and payment requirements. The IRS says more than 90% of individual taxpayers will qualify.
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While a plan request is pending, the IRS is generally barred from levying, with certain exceptions. Sources: IRS, Payment plans; Online payment agreement; Simple payment plans; Instructions for Form 9465; IRM 5.14.1. Checked Nov. 14, 2026.
Law Offices of Darrin T. Mish, P.A. | (813) 229-7100 | getirshelp.com
General information, not legal advice. Attorney advertising.
05
OFFERS IN COMPROMISE
Settling for less, if you qualify An offer in compromise lets you settle a tax debt for less than the full amount. The IRS decides who qualifies, and nobody can promise you an accepted offer or a set price. Before you apply File every tax return you're legally required to file. The IRS won't consider the offer otherwise. Try the IRS pre-qualifier at irs.gov/oictool. It isn't required, but the IRS recommends it.
"Nobody can promise you an accepted offer. The IRS makes that call from your finances."
What it costs to apply The application fee is $205, plus an initial payment. Individuals who meet the low-income guidelines don't pay the fee or the initial payment while the IRS considers the offer. There's no application fee for an offer based on doubt as to liability, meaning you dispute that you owe the tax (Form 656-L).
WORTH KNOWING
If the IRS accepts the offer, Form 656 says the lien for the periods in the offer will generally be released within 45 days after the final payment is received and verified. Signing an offer for a tax year makes you ineligible for innocent spouse relief for that year (Part Two). The forms and fees are in Form 656-B, the Offer in Compromise booklet (Rev. 4-2026).
Two ways to pay an offer
20%
6–24
Send 20% of the offer amount with the application. Pay the rest in five or fewer payments within five or fewer months of acceptance.
Send the first payment with the offer, then pay the rest monthly within 6 to 24 months. Keep paying while the IRS evaluates the offer.
Lump sum
Periodic payment
How an offer moves
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Sources: IRS, Offer in compromise; Form 656-B (Rev. 42026); IRS Topic 204; IRS, Innocent spouse relief. Checked Nov. 14, 2026.
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2
3
4
5
Check Run the IRS prequalifier and file any missing returns.
Apply Form 656 with the $205 fee and initial payment, unless you're low-income.
Wait The IRS evaluates. On a periodic offer, keep paying monthly.
Decision The IRS accepts or doesn't. Nobody can decide that for it.
Accepted Pay on the agreed terms. The lien generally comes off within 45 days after the final payment is received and verified.
Law Offices of Darrin T. Mish, P.A. | (813) 229-7100 | getirshelp.com
General information, not legal advice. Attorney advertising.
T H E I R S S U R V I VA L G U I D E
PA R T O N E O F T W O
Law Offices of Darrin T. Mish, P.A. TA M PA , F L O R I D A · I R S TA X P R O B L E M S
ADDRESS
15421 N Florida Ave Suite A Tampa, FL 33613
PHONE
(813) 229-7100 WEBSITE
getirshelp.com
Levies, liens, payment plans, offers in compromise, innocent spouse relief and trust fund penalties.
General information, not legal advice. Attorney advertising.
Reading this guide does not create an attorney-client relationship. No particular result is promised. Fees and rules shown were checked on IRS.gov on November 14, 2026, and can change.