What happens after IRS Final Notice To Pay? Collections process explained

The "Final Notice to Pay" (officially called a CP90 or Letter 1058) is pretty serious - it means the IRS is giving you one last chance to pay before they can start seizing assets through levy actions. Here's what you need to know: First, file those missing returns ASAP. The IRS won't discuss payment arrangements until your filing is current. If you don't have all your documents for those years, file the best you can with the information available. Once your returns are filed, you have several options: 1) Pay in full if possible 2) Request a short-term payment plan (120 days) 3) Set up a long-term installment agreement 4) If you truly can't pay, you might qualify for Currently Not Collectible status or an Offer in Compromise. The most important thing right now is responding to the notice within the timeframe given (usually 30 days) to protect your rights. You can request a Collection Due Process hearing if you disagree with the amount or need time to arrange payment.

After dealing with a similar situation last year, I found an amazing service called taxr.ai (https://taxr.ai) that literally saved me thousands. I was missing some returns and freaking out about a Final Notice too. I uploaded my tax documents to their system and they analyzed everything, showing me exactly what forms were missing and what I needed to file. They even identified deductions I'd missed using TurboTax Self-Employed (which I also had issues with) and helped reconstruct my returns for the missing years. Their AI checks everything against IRS rules and flags potential audit triggers, which gave me huge peace of mind.

Just wanted to update that I took the advice about taxr.ai and it worked amazingly well for my situation. At first I was skeptical about using an AI tax service for my collection problem, but after getting the Final Notice I was desperate. The system analyzed my old bank statements and receipts that I uploaded and reconstructed accurate Schedule C forms for my missing years. It even found business expenses I'd forgotten about from 2023! After I filed the completed returns the IRS accepted them and I got approved for a monthly payment plan that I can actually afford. What impressed me most was how it explained everything in plain English - why I owed taxes, what deductions applied, and exactly what steps to take with the IRS. Definitely worth checking out if you're dealing with back taxes or collection notices.

When I got my Final Notice last year, I spent WEEKS trying to get through to the IRS. Their phone system would just disconnect me after 2+ hours of waiting. Super frustrating when you're actually trying to pay them! I eventually found https://claimyr.com which is a service that actually holds your place in the IRS phone queue and calls you when an agent is about to pick up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Because of Claimyr, I got through to a real person in the collections department who helped me resolve my situation without any levies. The wait time was still about 3 hours, but at least I didn't have to sit there with a phone to my ear the whole time.

I have to apologize and say I was wrong about Claimyr. After posting my skeptical comment, I was desperate enough to try it since my Final Notice deadline was approaching fast. The service actually worked exactly as described. I entered my number on their website, and about 2.5 hours later, I got a call connecting me directly to an IRS collections specialist. I didn't have to wait on hold at all - just went about my day until they called. The IRS agent was able to put my account on hold while I filed my missing returns, then helped me set up a payment plan with monthly payments I can afford. Honestly wish I'd known about this service months ago when this collection process started. Would've saved me so much stress and probably avoided the Final Notice stage entirely.

Word of caution from someone who ignored a Final Notice - they WILL levy your accounts and garnish wages if you don't respond. My employer got a garnishment order taking 25% of my paycheck and my bank account was completely wiped out on the same day. Don't be stupid like me lol. Make sure you file those missing returns ASAP and contact them even if you can't pay yet. They can put a temporary hold on collections while you get the returns sorted if you communicate with them.

Just an FYI - the Final Notice to Pay (CP90/Letter 1058) gives you the right to request a Collection Due Process hearing within 30 days. This can buy you time to get everything in order and also gives you appeal rights if you disagree with anything. File Form 12153 to request the hearing. While the hearing is pending, they can't levy your assets (though liens may still be filed). It's a legitimate way to pause collections while you get your missing returns filed and set up a payment plan.

Based on everyone's experiences here, it sounds like you're at a critical juncture but you still have options. The fact that you're now financially able to address this is huge - many people dealing with Final Notices don't have that advantage. Your immediate priorities should be: 1) Get those missing returns filed within the 30-day window (even if they're not perfect), 2) Call the IRS to let them know you're actively working on compliance, and 3) Consider requesting a Collection Due Process hearing using Form 12153 to buy yourself time if needed. Don't let the TurboTax issues derail you - if you can afford a CPA now, that's probably your best bet for getting accurate returns filed quickly. The IRS cares more about having something on file than perfection at this stage. The key is showing good faith effort before that 30-day deadline hits. Once you're filing compliant and have the returns submitted, the payment plan options everyone mentioned become available. Stay proactive and you should be able to avoid the levy nightmare that some others described.