If there’s one thing that can ruin a perfectly good day, it’s finding an envelope from the IRS in your mailbox. The immediate urge might be to stuff it in a drawer and hope it goes away. But this is the single worst thing you can do.
The IRS operates on strict timelines, and ignoring correspondence only leads to escalated enforcement, heavier penalties, and more stress. As a CPA specializing in IRS tax resolution, I see clients every day who waited too long, turning a manageable situation into a crisis.
Not all IRS notices are created equal, but three, in particular, are major red flags. Here’s what they are and exactly how professional tax resolution can turn the situation around.
1. The CP504 Notice: "Intent to Levy"
This is your last warning before the IRS takes decisive action. The CP504, "Notice of Intent to Levy and Notice of Your Right to a Hearing," means the IRS is preparing to seize your assets. This can include garnishing your wages, taking money from your bank accounts, or seizing property.
Why You Can’t Ignore It: The timeline for response is extremely short. Once this notice is issued, the IRS can proceed with levy action without further warning.
How Tax Resolution Helps: A specialist will immediately file a Collection Due Process (CDP) Hearing request. This critical step stops all collection activity in its tracks, giving us time to negotiate a solution like an Installment Agreement or an Offer in Compromise.
2. The Letter 1058 or LT11: Final Notice of Intent to Levy & Notice of Your Right to a Hearing
This is essentially the certified mail version of the CP504 and carries the same severe weight. Receiving this via certified mail is the IRS ensuring you cannot claim you didn’t get it. It’s the final notice before levy action begins.
Why You Can’t Ignore It: This is the legal prerequisite for the IRS to move forward with aggressive collection. Ignoring it guarantees financial disruption.
How Tax Resolution Helps: Again, the immediate action is to request the CDP Hearing. This is your legal right and the most powerful tool to hit the “pause” button. We use this protected period to analyze your entire financial situation and present the most favorable resolution strategy to the IRS.
3. The Letter 3172: Notice of Federal Tax Lien Filing
A lien is different from a levy. A lien is a public claim against your property (like your home or car) to secure the government’s interest in your debt. It doesn’t immediately take the property, but it devastates your credit score and makes selling or refinancing impossible.
Why You Can’t Ignore It: A filed tax lien becomes a public record, damaging your financial reputation for years. It must be addressed to regain control of your assets.
How Tax Resolution Helps: We work to get the lien released or withdrawn. A release happens once the debt is paid or through a settlement. More importantly, we often negotiate a withdrawal, which removes the public notice as if it never existed, by setting up a Direct Debit Installment Agreement or satisfying other IRS criteria. This is a key service that provides long-term financial relief.
The Franskoviak CPA Approach to Tax Resolution
When you bring one of these notices to us, we don’t just respond to the letter—we diagnose the root problem and build a defense. Our process is straightforward:
Immediate Analysis & Strategy: We review your notice, past returns, and current financial status to understand the full scope.
IRS Communication & Shield: We take over all communication with the IRS, providing you with a single point of contact and relieving you of the stress.
Strategic Resolution Filing: We prepare and submit the precise arguments, forms, and financial disclosures required—whether for a CDP Hearing, an Installment Agreement, an Offer in Compromise, or Penalty Abatement.
Advocacy & Negotiation: We advocate on your behalf, using our knowledge of IRS procedures and negotiator tendencies to secure the best possible outcome.
Don't Face the IRS Alone
An IRS notice is a procedural step, not a final judgment. But your response does determine the final outcome. Taking proactive, professional action transforms a threatening letter into a solvable problem.
If you’ve received any of these notices, time is not on your side. Let’s discuss your situation and build a path forward.
