Owe the IRS? Why the bills may soon come every quarter
How often does the IRS remind you that you owe?
Less often than most people think. IRS notices for back taxes come in a short run, and then they mostly stop. After a short run of notices, the law only requires the IRS to send one reminder a year. A credit card company bills you every month and tells you what paying only the minimum will cost. The IRS doesn't do either.
On September 30, 2026, the Senate passed a bill that would change that. It isn't law yet. Here's how IRS notices work today, and what the bill would do.
IRS notices for back taxes today
When a tax balance goes unpaid, the IRS sends a series of notices, usually over a few months. A typical sequence for an individual:
CP14. The first bill. It shows the tax, penalties and interest, and asks for payment.
CP501 and CP503. Reminders that the balance is still unpaid.
CP504. A notice of intent to levy. The IRS can start taking a state tax refund at this point.
LT11 or Letter 1058. The final notice of intent to levy. It gives you 30 days to request a Collection Due Process hearing before the IRS levies wages, bank accounts or other assets.
Not every account gets every notice, and the order can vary.
How often does the IRS send notices after that? Once a year
Once that run is over, the only notice the law requires is an annual one. Section 7524 of the tax code says that at least once a year, the IRS has to send a written notice of the amount you owe to each taxpayer with a delinquent account.
So someone can owe the IRS for years and hear from it about once a year, unless the case moves to a revenue officer or a levy.
Penalties and interest on unpaid taxes keep growing
The balance doesn't wait for the next notice.
Failure-to-pay penalty. 0.5% of the unpaid tax for each month or part of a month, up to 25%. It goes up to 1% a month if the balance is still unpaid 10 days after a notice of intent to levy. It drops to 0.25% a month while an installment agreement is in effect, if you filed the return on time.
Interest. Charged on the unpaid tax and on penalties, compounded daily. The rate is the federal short-term rate plus 3 points, reset every quarter.
The 10-year clock. The IRS generally has 10 years from the date a tax is assessed to collect it. Some events, like an offer in compromise being considered or a bankruptcy, pause that clock.
Over several years, penalties and interest can add a large share on top of the original tax.
What payment plan and CNC accounts get today
If you have an installment agreement, the IRS stops the collection notices and sends an annual statement showing what you owed at the start of the year, what you paid, and what you still owe.
If your account is currently not collectible (CNC), the IRS has decided you can't pay right now. Levies and most collection stop, but the IRS generally still sends the annual reminder of the balance. Penalties and interest keep adding up.
IRS quarterly notices: what Section 109 would change
The bill is H.R. 5349, the Taxpayer Assistance and Service Act. Section 109 is called "Quarterly notices to certain taxpayers with delinquencies." It rewrites section 7524.
Quarterly, not annual. The IRS would have to send the delinquency notice at least every quarter.
A cost estimate. Each notice would have to include an estimate of the penalties and interest that may build up if the debt isn't fully paid within the time left on the 10-year collection period.
Where to get help. Each notice would have to list programs and services that can help the taxpayer.
The idea is the same one behind credit card statements: you can't make a good decision about a debt if you don't know what waiting will cost.
Who it wouldn't cover
The quarterly notice requirement wouldn't apply:
while an installment agreement is in effect,
while an accepted offer in compromise is in effect, or
when the IRS has determined the tax is currently not collectible.
The bill text exempts these accounts from the notice requirement in section 7524 altogether. It doesn't say whether the IRS would keep sending them an annual reminder anyway, as a matter of practice. Payment plan accounts would still get their annual statement under the separate installment agreement rules.
Where it stands
The House passed H.R. 5349 by voice vote on December 1, 2025. On September 30, 2026, the Senate passed it by unanimous consent with a full substitute text, which is where Section 109 came in. The House now has to agree to the Senate's version before it can go to the President.
Even if it's enacted, Section 109 takes effect 24 months after the date of enactment. Until then, the current rules apply.
What to do now
Don't wait for the next notice. If you know you owe, the balance is growing whether or not a letter arrives.
Check your transcript. Your IRS online account or account transcript shows the real balance, including penalties and interest to date.
Look at a payment plan. If you owe $50,000 or less in combined tax, penalties and interest and your returns are filed, you can usually set one up online. On a timely filed return, it cuts the monthly penalty in half.
Ask about penalty relief. First-time abatement or reasonable cause can remove penalties, and the interest on them comes off too.
Know your 10-year date. It affects which options make sense.
Stop a new balance from starting. Get your returns filed, and plan this year's withholding or estimated payments so next April doesn't add to the debt. That's where tax planning and preparation pay off.
Don't forget the states. New York, New Jersey and Connecticut send their own bills and have their own collection rules.
FAQ
Is Section 109 law?
No. The Senate passed it on September 30, 2026. The House still has to agree. If it's enacted, it takes effect 24 months later.
How often does the IRS send notices for back taxes now?
A few notices over the first months, usually CP14, CP501, CP503, CP504 and then LT11 or Letter 1058. After that, the law requires at least one reminder a year.
Would I get quarterly notices on a payment plan?
No. The bill exempts installment agreements, accepted offers in compromise and currently not collectible accounts.
Does a notice change what I owe?
No. Penalties and interest build up whether or not you get a notice. The estimate would just show you the number.
Can the IRS collect after 10 years?
Generally no, but the 10-year period can be paused or extended in certain cases, so check your dates.
Related: CP504 vs. LT11 · IRS payment plan vs. a loan · File even if you can't pay
Official sources: IRS: Understanding your IRS notice or letter · IRS: Failure to pay penalty · IRS: Payment plans
Owe the IRS and not sure where you stand?
Book a free consultation and we'll look at your balance, your notices and your options. I work with individuals, businesses and trusts on IRS, New York, New Jersey, Connecticut and Pennsylvania balances, plus the tax planning and preparation that keep new ones from starting.
Solomon Grosinger, Enrolled Agent
I'm licensed by the IRS and have represented taxpayers before the IRS and New York, New Jersey, Connecticut and Pennsylvania tax agencies from Brooklyn since 2017.
General info, not advice for your specific case.
