IRS Collections Are Surging in 2026: The Notice Sequence Before a Levy — and Your 30-Day Window
6 min read · By Jonathan C. Do, Esq. · July 2026
For most of the pandemic, the IRS collection machine was effectively idle. Automated notices were paused, and a lot of taxpayers who owed back taxes simply stopped hearing from the agency. That grace period is over. The IRS restarted automated collections in 2024, and by 2026 the process is faster and more automated than it has been in years — which means the gap between "I owe some back taxes" and "the IRS is taking my paycheck" can be surprisingly short.
What changed: automation is back on
In early 2024 the IRS resumed sending automated collection notices after its COVID-era pause, including LT38 notices that formally restart the collection clock for taxpayers with older, pre-pandemic balances. The agency's Automated Collection System (ACS) has since been generating balance-due and levy notices at a higher volume, and it kept running even through the government shutdown in late 2025.
The practical takeaway: enforcement in 2026 leans on automation, not on a human being reviewing your file. Notices go out on a schedule, and the escalation toward a levy can continue while you're still trying to figure out what to do.
The notice sequence, in order
IRS collection letters are not interchangeable, and the difference between two of them decides whether the IRS can legally seize your money. Here is the typical progression:
- CP14 — the first notice, telling you there's an unpaid balance. This is where the clock starts.
- CP501 and CP503 — reminder notices that the balance is still owed.
- CP504 — labeled a "Notice of Intent to Levy." Despite the scary language, this notice by itself does not authorize the IRS to take your wages or bank account. It does authorize the IRS to seize your state tax refund, and it signals that the final step is coming.
- LT11 / Letter 1058 — the Final Notice of Intent to Levy and Notice of Your Right to a Hearing. This is the one that actually authorizes wage garnishments and bank levies once the deadline passes.
The 30-day window that matters most
Federal law requires the IRS to send a Final Notice of Intent to Levy at least 30 days before most levies. From the date of that final notice, you have 30 calendar days to request a Collection Due Process (CDP) hearing by filing Form 12153.
Requesting a timely CDP hearing does two important things: it generally pauses levy action while your case is pending, and it preserves your right to have the U.S. Tax Court review the outcome. Miss the deadline, and on day 31 the IRS gains the legal authority to begin seizing assets without sending another warning.
Why the CP504 vs. LT11 distinction trips people up
We regularly see taxpayers panic over a CP504 and then ignore the LT11 that arrives weeks later — exactly backwards. The CP504 is a warning shot. The LT11 (or Letter 1058) is the one that starts your 30-day clock. If you can only act on one letter, act on that one.
How to stop a levy or garnishment
1. Read the letter and find the date.
Identify whether you're holding a CP504 or an LT11/Letter 1058, and note the date on it. That single date tells you how much time you actually have.
2. File the CDP request on time.
A timely Form 12153 is often the fastest way to halt collection and get a neutral IRS Appeals officer to look at your case.
3. Get compliant and propose a resolution.
The IRS wants unfiled returns filed and a plan for the balance. Depending on your finances, that could be an installment agreement, currently-not-collectible status, or an Offer in Compromise.
4. Don't wait for the levy to hit.
Once a wage garnishment or bank levy starts, unwinding it is harder and slower than preventing it. The best leverage you have is the 30-day window before the levy — not after.
Got a levy notice? Talk to us before the clock runs out.
If you've received a CP504, an LT11, or a Letter 1058 — or the IRS has already started garnishing your wages — send it to us. We'll tell you exactly how many days you have and what your options are to stop collection.
Request a Free Consultation →About the author: Jonathan C. Do is a tax attorney with 25+ years representing businesses and individuals in IRS audits, collections, appeals, and U.S. Tax Court matters. He practices at Tax Resolution Center LLC in San Jose, CA.