IRS Wage Garnishment: The CP14 to LT11 Timeline That Can Cost You Your Paycheck
If you are behind on your taxes, one of your biggest fears may be IRS wage garnishment. I understand. The idea of the IRS taking money directly from your paycheck feels overwhelming and personal.
But here is the truth. Wage garnishment does not happen overnight. It follows a very specific timeline. And if you understand how the process escalates from CP14 to LT11, you can stop it before your paycheck is touched.
The IRS Collection Timeline: From CP14 to LT11
The IRS does not start with garnishment. It starts with notices.
CP14: The First Balance Due Notice
The CP14 is usually the first letter you receive after the IRS assesses your tax and shows you owe money. This notice simply states:
The amount you owe
The due date
Penalties and interest added
At this stage, there is no garnishment threat. This is an early billing notice. But penalties and interest are already growing daily.
Your best move here is simple. Pay in full if possible or set up an Installment Agreement immediately.
Follow-Up Notices: CP501 and CP503
If you ignore CP14, the IRS sends reminder notices such as CP501 and CP503. These become progressively more urgent in tone.
Still, no wage garnishment yet.
But here is what is happening behind the scenes. Your account is moving deeper into the IRS collections system. The longer you wait, the fewer easy options you may have.
CP504: Notice of Intent to Levy
Now things escalate.
CP504 is often misunderstood. It states the IRS intends to levy certain assets and may seize state tax refunds. This is the first notice that uses stronger enforcement language.
However, CP504 alone does not allow the IRS to garnish your wages.
It is a warning shot.
Many taxpayers panic at CP504, but legally, wage garnishment requires one more critical step.
LT11 or Letter 1058: Final Notice of Intent to Levy
This is the turning point.
The LT11 or Letter 1058 is called the Final Notice of Intent to Levy and Notice of Your Right to a Hearing. Once this letter is issued:
The IRS can legally garnish wages
The IRS can levy bank accounts
The IRS can seize certain assets
But here is the key detail most people miss.
You have 30 days from the date of the LT11 to request a Collection Due Process hearing. If you request it in time, wage garnishment is paused while your case is reviewed.
This is your critical window to act.
When Does Wage Garnishment Actually Begin?
After the 30-day LT11 window expires without action, your account becomes eligible for levy.
The IRS can then issue a wage levy to your employer. Unlike most creditors who take a percentage, the IRS uses a calculation based on your filing status and dependents. Everything above a small exempt amount can be taken.
And it continues each pay period until:
The debt is paid
You set up an approved resolution
The collection statute expires
The levy is released
This is why early action matters. Once garnishment starts, stopping it becomes harder but not impossible.
Common IRS Garnishment Myths
Let’s clear up a few dangerous myths.
Myth 1: The IRS Will Garnish Me Without Warning
Not true. The IRS must send multiple notices, including a Final Notice of Intent to Levy, before garnishing wages.
If your wages are being garnished, you received notices. They may have gone unopened, but they were sent.
Myth 2: There Is Nothing I Can Do Once I Get LT11
Also false.
The 30-day hearing window is powerful. You can propose:
An Installment Agreement
An Offer in Compromise
Currently Not Collectible status
Penalty Abatement
Enforcement pauses during a timely hearing request.
Myth 3: The IRS Takes Everything
The IRS does leave you a small exempt amount based on standard tables. However, it can be aggressive compared to private creditors.
Still, resolution options almost always reduce the financial damage compared to ignoring the problem.
Your Rights Before an IRS Levy
Before wage garnishment, you have important rights:
The right to receive written notice
The right to request a Collection Due Process hearing
The right to representation
The right to propose collection alternatives
The IRS cannot simply freeze your paycheck without giving you this opportunity.
This is why reading your notices matters. Ignoring IRS letters is the fastest way to lose leverage.
When Should You Act?
The best time to act is at CP14.
The second best time is today.
If you are at CP501 or CP503, you still have full flexibility. At CP504, urgency increases. At LT11, you are in the final pre-garnishment stage and must act within 30 days.
Once a wage levy hits your employer, you lose negotiating power and financial breathing room.
The earlier you step in, the more control you keep.
Do not wait. You may still be able to pause levy action. Get a free consultation with our back-tax service to find out if your paycheck can be protected. CLICK HERE
