What happens if I ignore IRS tax debt and don't respond to notices?

Ignoring IRS tax debt is one of the most costly mistakes you can make. The IRS follows a structured collection process that escalates over time. First, you'll receive a series of notices (CP14, CP501, CP503, CP504) over 4-6 months. If you don't respond, the IRS will issue a Final Notice of Intent to Levy (Letter 1058 or LT11), giving you 30 days before enforced collection begins. After that, the IRS can garnish your wages (taking up to 70% of your paycheck), levy your bank accounts (seizing the entire balance), file federal tax liens that destroy your credit score, seize your property including vehicles and real estate, revoke your passport for debts over $62,000, and offset your federal and state refunds. Meanwhile, penalties and interest continue accumulating. The failure-to-pay penalty is 0.5% per month, and interest compounds daily at the federal short-term rate plus 3%. Taking action early, even if you can't pay in full, prevents these escalating consequences.