5 IRS Letters You Should Never Ignore and What to Do About Them
Introduction
Getting a letter from the IRS is never fun. But not all letters are created equal. Some are routine. Others are warning shots. A few are red alerts that your bank account, paycheck, or peace of mind are on the line.
The scary part? Most people don’t know which is which, and ignoring the wrong one can lead to wage garnishment, levies, or even defaulted tax debt.
Here’s exactly what to do if one of these five IRS letters shows up in your mailbox.
1. CP14 – The First Notice You Owe the IRS
What it means:
The CP14 is usually the first letter the IRS sends if you filed a return but didn’t pay your full balance. It’s your official “you owe us” notice.
Why it matters:
This letter starts the IRS collection timeline. It includes the amount due, the deadline to pay, and instructions to avoid penalties.
What to do:
Don’t wait. Even if you can’t pay the full amount, respond. You may qualify for a payment plan or penalty relief. BackTax AI can simulate your options in minutes and help you avoid deeper trouble.
The IRS won’t tell you this, but responding early can buy you time and stop penalties from stacking up.
2. CP504 – Intent to Levy State Refund or Assets
What it means:
You ignored earlier IRS letters, and now they’re getting serious. The CP504 warns that the IRS may seize your state tax refund and other assets if you don’t respond.
Why it matters:
This letter triggers the IRS's ability to take your money. It’s not just a threat—it’s a step away from real collection actions.
What to do:
You’re on a timer. You still have rights, but you must act fast. Use BackTax AI to assess your resolution options and stop collection before it escalates.
You don’t have to live in fear of the IRS. But you do have to act.
3. LT11 or Letter 1058 – Final Notice Before Garnishment
What it means:
This is your last warning. If you don’t respond, the IRS can garnish your wages or levy your bank account.
Why it matters:
You have just 30 days from the date on the letter to appeal or resolve the issue. If you do nothing, they can start taking your money directly.
What to do:
Time is critical. This is the moment to request a Collection Due Process (CDP) hearing, set up a resolution, or show financial hardship. BackTax AI can guide you through your best option and even prep your appeal letter.
Once you know exactly what to do and how to do it, you can stop garnishment before it starts.
4. CP90 – Intent to Levy Social Security
What it means:
This letter tells you the IRS plans to garnish your Social Security benefits to collect unpaid taxes.
Why it matters:
Yes, the IRS can legally take a chunk of your Social Security check. This is often a last resort, but if you’re in hardship, there are ways to stop it.
What to do:
You may qualify for Currently Not Collectible status or a reduced payment plan. BackTax AI checks your financials against IRS hardship guidelines and helps you apply fast.
You can protect your income—but only if you respond before the levy begins.
5. CP2000 – Unreported Income Detected
What it means:
The IRS found a mismatch between your return and third-party data (like W-2s or 1099s). They think you underreported income.
Why it matters:
This isn’t a bill, but a proposed adjustment. If you do nothing, the IRS will assume you agree and issue a new tax balance - often with penalties.
What to do:
You can dispute it or agree. Either way, you need to respond. Upload your CP2000 to BackTax AI, and we’ll walk you through how to handle it with the right documentation.
Ignoring a CP2000 can turn a small mistake into a big tax bill.
Why These IRS Letters Matter More Than Others
The IRS sends dozens of different letters, but these five are the most common signs that your situation is entering serious territory. They mean you’re moving from notice into enforcement.
But here’s the truth: these letters also open a window of opportunity.
Each one gives you a chance to fix the problem before it spirals. The IRS is required to give you due process. You just have to know what to do—and do it quickly.
Your problem won’t just disappear, but solving it is likely easier than you think.
What to Do If You Get Any IRS Letter
Don’t ignore it. Even scary letters have deadlines and options.
Read the code. CP14, CP504, LT11—they’re not random. They tell you what the IRS is planning.
Use BackTax AI. Upload your letter, get a plain-English explanation, and see your options instantly.
Take Control Today and Sleep Better Tonight
IRS letters are scary, but they’re also solvable. With AI on your side, you can respond faster, smarter, and with total confidence.
No more guesswork. No more fear.
Get the IRS off your back. Upload your IRS letter to BackTaxAI and get your personalized resolution strategy today.
