What Happens If I Ignore the IRS?
Looking for an Arabic tax lawyer near you? The IRS never forgets. Ignoring their notices only makes things worse—more penalties, more interest, and eventually, enforced collection. Arab tax attorneys help Iraqi, Syrian, Lebanese, Palestinian & Yemeni clients resolve this.
10
Years to Collect
70%
Max Wage Garnishment
8%+
Annual Interest
100+
Credit Score Drop
IRS myths vs reality
These are the most common excuses people use—and why they're wrong.
Myth: "The IRS will just forget about it"
Reality: The IRS has 10 years to collect and they never forget. Their systems are automated.
Myth: "They can't find my bank accounts"
Reality: The IRS has access to banking records, employer reports, and third-party data. They will find your assets.
Myth: "I'll deal with it next year"
Reality: Every day you wait adds penalties and interest. A $10K debt becomes $18K+ in 5 years.
Myth: "Ignoring it is easier than facing it"
Reality: Wage garnishment taking 70% of your paycheck is much harder than a voluntary payment plan.
IRS collection timeline
Here's exactly what happens when you ignore IRS notices—month by month.
CP14 or CP2000 Notice
The IRS sends a notice explaining what you owe and why. This is your first chance to respond, dispute, or set up a payment plan.
Consequence
Interest begins accruing (currently ~8% per year)
Your Move
Respond within 30 days to avoid penalties
CP501-CP504 Reminder Notices
The IRS sends increasingly urgent reminders. CP504 is the final notice before enforced collection.
Consequence
Failure-to-pay penalty added (0.5% per month)
Your Move
Last chance to set up voluntary payment plan
Notice of Federal Tax Lien
The IRS files a public lien against all your property—home, car, bank accounts, and future assets.
Consequence
Credit score drops 100+ points, can't sell property
Your Move
Lien can be released with payment or settlement
Final Notice of Intent to Levy (CP90)
The IRS warns they will seize assets in 30 days. This is your final chance to request a hearing.
Consequence
You have 30 days to request a Collection Due Process hearing
Your Move
Request CDP hearing immediately
Bank Account Levy
The IRS freezes and seizes money from your bank accounts. They can take everything except exempt amounts.
Consequence
Immediate loss of funds, bounced checks, frozen accounts
Your Move
Emergency release may be possible with hardship proof
Wage Garnishment
Your employer is ordered to send a portion of each paycheck directly to the IRS.
Consequence
Can take up to 70% of disposable income
Your Move
Installment agreement or OIC can stop garnishment
Property Seizure
The IRS can seize and sell your home, car, and other valuable property to satisfy the debt.
Consequence
Total loss of property, often sold at below market value
Your Move
Rare but possible—usually a last resort
How fast penalties add up
Waiting costs you more money every single day.
Failure to file
Max: 25% of taxes owed
Penalty for not filing your tax return on time
Failure to pay
Max: 25% of taxes owed
Penalty for not paying taxes by the due date
Interest
Max: No maximum
Compounds daily on unpaid taxes and penalties
Fraud penalty
Max: 75% of taxes owed
If IRS determines willful fraud
Real Example: $10,000 Tax Debt
After just 2 years of ignoring the IRS, a $10,000 debt can grow to $14,000+ with penalties and interest. After 5 years: $18,000+. The longer you wait, the more you owe—and the harder it becomes to resolve.
Tax debt solutions
You have options—but you need to take action. Here's how to resolve your IRS debt.
Installment agreement
Pay your tax debt in monthly payments over 3-6 years
Best for: Can afford monthly payments but not lump sum
Offer in compromise
Settle your tax debt for less than you owe
Best for: Financial hardship or doubt about liability
Currently not collectible
Pause collections if you can't afford basic living expenses
Best for: Temporary hardship, no ability to pay
Penalty abatement
Request removal of penalties due to reasonable cause
Best for: First-time penalty or extenuating circumstances
Stop ignoring. Start solving.
Our Arabic-speaking tax attorneys can help you understand your options, negotiate with the IRS, and find a solution that works for your situation. The sooner you act, the better your options.
Questions about IRS Collections
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Disclaimer: The information on this page about IRS collection procedures is provided for general educational purposes only. IRS rules, procedures, and timelines can vary based on individual circumstances and may change. This information does not constitute tax or legal advice. The consequences described are general in nature and may differ based on your specific tax situation, compliance history, and other factors. Consult with a licensed tax attorney, CPA, or enrolled agent for advice specific to your situation.