Key Takeaways The IRS has extraordinary collection powers: bank levies, wage garnishments, property liens, and asset seizures — but you have rights and defenses at every step A Collection Due Process (CDP) hearing can stop IRS collection enforcement and provide access to Tax Court review Understanding the difference between liens and levies is essential for developing an effective defense strategy The 10-year collection statute limits how long the IRS has to collect — but tolling events can extend it Multiple resolution options exist: installment agreements, Offer in Compromise, Currently Not Collectible status, and bankruptcy discharge Understanding IRS Collections IRS collections begins after the assessment phase — once the IRS has determined you owe taxes (either from a filed return or an audit adjustment) and you have not paid. The IRS follows a structured process before escalating to enforcement, starting with notices and progressing through increasingly aggressive collection actions. The typical collection timeline follows this pattern: Notice CP14: First balance due notice, 30 days after filing Reminder notices (CP501, CP503): Follow-up billing notices sent over several months Notice CP504 : Final Notice of Intent to Levy — your last opportunity to prevent enforcement before the IRS acts Notice LT11 / Letter 1058: Final Notice of Intent to Levy and Notice of Your Right to a Hearing (triggers CDP rights) Enforcement: Bank levies, wage garnishments, property seizures IRS Liens: How They Work A federal tax lien is the government's legal claim against your property when you neglect or fail to pay a tax debt. The lien arises automatically when you fail to pay within 10 days of the IRS sending a demand for payment. Once filed as a Notice of Federal Tax Lien (NFTL), it becomes public record and attaches to all your property and rights to property. Key facts about liens:...