(link to irs.gov)

• Understanding Your IRS letter.

CP-501 - Letter
You have a balance due (money you owe the IRS) on one of your tax accounts.                                                                                                What happens if I don't respond to this notice?
If you don't pay the amount due or call the IRS to make arrangements, the can file a Notice of Federal Tax Lien on your property at any time, if they haven't already done so. In addition, if you don't pay the amount you owe by the due date on the notice, interest will increase and additional penalties may apply.  If the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report ― which may harm your credit rating ― and your creditors would also be publicly notified that the IRS has priority to seize your property.