IRS Love Letters & Notices (Collections): What You Need to Know

Your client may think nothing’s happening. You may think you’ve got time.

But behind the scenes, the IRS is working through a process—methodical, escalating, and built around a series of increasingly urgent letters.

Understanding these letters means knowing exactly where your client stands—and how close they are to real consequences.

Here’s Why It Matters

As a trusted professional, you’ve seen firsthand what happens when unresolved tax debt stalls everything:

You can’t finalize a divorce because the parties can't agree on an outstanding tax debt.

Your client has tax debt left even after a Chapter 7 bankruptcy.

A quick tax lien search denies the client's business loan.

The house can't be sold because the title needs to be cleared of a tax lien.

All of this can be avoided by understanding IRS notices.

The 3 Key IRS Letters That Signal Escalation

There are dozens of IRS notices. But if you’re a professional working with clients who owe taxes, these three are the ones you need to know.

1. CP14 – The Gentle Nudge

Think of this one as the IRS saying,

“You owe us. Just making sure you know.”

It doesn’t come with threats. It doesn’t even sound urgent. But interest and penalties are already growing. And if the taxpayer does nothing (which they usually do), the IRS just moves to the next step.

Professionals often ignore CP14 because they don’t feel like it’s a crisis. But once this letter hits, your client is no longer in good standing. A tax debt has been assessed.

You're on the clock.

2. CP503/504 – The Wake-Up Call

This is the IRS saying,

“We’ve asked nicely. You’ve ignored us. This is your final reminder.”

CP504 comes out after the CP14. The tone is more serious. The language starts to shift.

It’s still technically a notice—not an enforcement. But now it’s becoming clear: The IRS is preparing to move from suggestion to action.

By the time a client gets a CP504, the wheels are turning internally at the IRS. Their case is being queued up for enforcement.

3. LT11 or CP90 – The Final Straw

This may be the first time professionals hear about the debt—it may be when the client finally decides to open their mail.

We may seize your property by [insert date]

This is not a warning anymore. It’s a Final Notice of Intent to Levy. The IRS is telling your client—in writing—that it is preparing to garnish wages, seize bank funds, or both.

The IRS doesn’t need the client to sign for it. They don’t even need the client to read it. If it was mailed to the last known address, the IRS has met its legal requirement.

And if you don't resolve the tax debt or file an appeal within 30 days?

That's when the levy hits.

TL;DR – The IRS Letters That Matter

⏩ CP14 – “Hey, just letting you know you owe money.” No pressure.

⏩ CP504 – “Final reminder.” Starting to get serious.

⏩ LT11 – “We’re preparing to take your money.” Act now.

If your client shows you one of these letters around, don’t wait around and deal with it later.

Let's Talk...

➤ Have you ever had a client come to you with one of these IRS notices—without realizing what it meant? What happened next?