You’re not the only one
Lots of people stop opening IRS mail. The first letter feels bad. The second feels worse. After a while, the envelopes go in a drawer, and you try not to think about them.
If that’s you, take a breath. You’re not in trouble for being scared. But the letters don’t stop just because you stop reading them. Here’s what usually happens, and why it’s worth acting now.
The bill keeps growing
When you owe the IRS, the balance doesn’t sit still. Two things keep adding to it.
Penalties. If you didn’t pay on time, the IRS adds a late-payment penalty. That’s 0.5% of the unpaid tax for each month, up to 25%. If you didn’t file on time, there’s a separate late-filing penalty. That one is 5% a month, also up to 25%.
Interest. Interest is added every day on what you owe. That includes interest on the penalties. And in most cases, interest doesn’t come off just because you had a good reason for being late.
So a bill that felt big a year ago is usually bigger now. Every month you wait, more gets added.
The letters get more serious
The IRS usually sends several letters before they take anything. Each one is a little firmer than the last. The early ones are bills. The later ones warn that they plan to take money or property.
Two kinds of letters matter most.
- A notice of intent to levy. A levy is when the IRS takes money from your paycheck, your bank account, or other payments. If you don’t pay within 10 days of this notice, the late-payment penalty doubles to 1% a month.
- The final notice. This is often Letter LT11 or Letter 1058. You have 30 days to ask for a Collection Due Process hearing. That’s a hearing where you can tell your side and ask for another way to settle up before collection starts.
If you miss that 30-day window, you lose an important right. That’s why the final notice is the one letter you should never leave in the drawer.
What the IRS can do if you don’t answer
If the letters keep going unanswered, the IRS may:
- Take part of every paycheck.
- Take money from your bank account. The bank holds the money for 21 days first.
- File a lien, which is a public legal claim on your property.
- Keep your tax refunds and put them toward the debt.
- Tell the State Department you owe a large tax debt. That can block a passport. In 2026, that starts at $66,000.
If you haven’t filed some years, there’s another risk. The IRS can file a return for you. This is called a Substitute for Return. It often leaves out deductions you’re owed, so the bill can be much too high.
The good news: answering gives you choices
Most of the worst steps can be avoided if you respond in time. Once you answer, you have options.
- You can challenge a bill you think is wrong.
- You can ask to have penalties taken off.
- You can set up a payment plan you can keep.
- In some cases, you may be able to settle for less, or pause collection while money is tight.
None of these happen on their own. The number on your letter is a claim, not a final word. Someone has to check it and push back.
What to do with the stack in the drawer
Open them. All of them. Put them in order by date. Find the newest one and look for a deadline. If you see the words “final notice” or a 30-day date, call someone that week.
You don’t have to read every word or understand it all. That’s our job. We get your full IRS record, check the numbers, and step in so the IRS deals with us instead of you. And if it turns out you don’t need us, we’ll tell you that too.