IRS Collection Process: Notices, Appeals, Time Limits

Publication 594 (Rev. 1-2026), The IRS Collection Process, describes what happens when a tax bill is not paid. This guide covers the basic steps, the main notices, and the appeal rights in that publication. This guide is general information. It is not advice about your case.

The basic steps

The IRS sends a bill for tax due. The bill includes the interest and penalties that apply.
If the bill is not paid, the IRS sends at least one more bill. Interest and penalties keep building until the full amount is paid.
If the balance is still unpaid after the final bill, the IRS can begin collection actions.

Collection actions can range from applying a later tax year's overpayment to the tax due, to seizing property and assets. A Revenue Officer may visit a home or business. The publication says unannounced visits are rare. Before a visit, the Revenue Officer normally mails an appointment letter or calls to set one up.

Ways to pay

The publication recommends paying in full to keep interest and penalties down. If you cannot pay in full, you can ask for a payment plan or an offer in compromise. A payment plan lets you pay in installments over time. An offer in compromise can settle a debt for less than the full amount owed, if the IRS accepts it. Keep making estimated tax payments on time so new balances do not build up.

The federal tax lien

When a bill is not paid, a lien arises by law. A lien is a legal claim against your current and future property. It can reach your home, car, wages, and bank accounts. The IRS can file a Notice of Federal Tax Lien with local or state offices, such as a county recorder. That notice tells other creditors about the IRS claim. The IRS may withdraw a notice in some cases, such as after a direct debit payment plan is set up and certain other conditions are met. A withdrawal does not release the lien, and it does not end the debt.

How long the IRS can collect

The publication says the IRS can try to collect for up to 10 years from the date the tax was assessed. That period can be suspended in some cases. A Collection Due Process hearing also suspends the 10-year period.

Your appeal rights

Most collection actions can be appealed to IRS Appeals. Appeals is separate from the collection office that started the action. There are three main options.

Collection Appeals Program. You can ask for a conference with the collection manager about a levy, a seizure, or a lien filing. If the IRS seizes a house, car, or other property, you must ask within 10 business days after the Notice of Seizure. For a levy on wages or bank accounts, the publication says there is no deadline to ask for a manager conference.
Collection Due Process. You file Form 12153, or a written request with the same information, after you receive certain notices. Examples include the Notice of Federal Tax Lien Filing and Your Right to a Hearing, and the Final Notice of Intent to Levy. If you disagree with the Appeals decision, you can go to court.
Equivalent hearing. If the Collection Due Process deadline was missed, you can ask for an equivalent hearing within one year from the date of the notice. You cannot go to court if you disagree with the Appeals decision in that case.

The publication also describes the Taxpayer Advocate Service. It is an independent organization within the IRS that helps taxpayers and protects taxpayer rights.

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Sources: Sources: IRS, Publication 594 (Rev. 1-2026), The IRS Collection Process (https://www.irs.gov/pub/irs-pdf/p594.pdf) This is general information, not advice about your specific return.

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