What Happens When You Owe the IRS More Than $10,000 and Ignore Collection Attempts

Ignoring tax debt can lead to serious financial and legal consequences—especially when the amount owed exceeds $10,000. The IRS has broad authority to collect unpaid taxes, and once collection notices go unanswered, the agency can escalate enforcement actions quickly.



If you owe over $10,000 and do not respond to IRS communications, the agency may file a federal tax lien against your property, which can severely damage your credit and make it difficult to sell or refinance assets. In more severe cases, the IRS may issue a wage garnishment or bank levy, seizing funds directly from your paycheck or bank account. Continued non-compliance can also lead to passport restrictions or referral to the Department of Justice for collection enforcement.

Fortunately, there are ways to prevent or stop these actions. The IRS offers repayment options and programs, such as installment agreements or the Fresh Start Program, for taxpayers willing to engage and resolve their debt.

At Fine Law, we assist clients in responding to IRS notices, negotiating settlements, and protecting their assets from enforcement actions. If you’ve received IRS letters or are already facing liens or levies, don’t wait—contact our office today to get the legal help you need before matters escalate.