IRS Notice LT11: What It Means and How to Respond

Receiving IRS Notice LT11 can be alarming because it signals that the IRS is getting ready to take serious action to collect unpaid taxes. LT11 is a "Final Notice of Intent to Levy and Your Right to a Hearing", meaning that the IRS is on the verge of seizing your assets unless you act quickly. If you’ve received this notice, it’s critical to understand what it means and what steps you can take to resolve the situation before it escalates.

Call Turner Business Solutions at (316) 285-0125 if you need assistance with an IRS notice. You can also schedule a free consultation online.

What is IRS Notice LT11?

IRS Notice LT11 is the IRS’s formal warning that they intend to levy your property, which means they can seize your wages, bank accounts, and other assets to settle unpaid tax debts. The notice also informs you of your legal right to a Collection Due Process (CDP) hearing, which allows you to dispute the levy or propose alternative solutions.

This notice is a final step before the IRS takes aggressive collection action, but you still have time to respond and prevent a levy from taking place.

Why Did You Receive IRS Notice LT11?

You received Notice LT11 because you have an outstanding tax debt that hasn’t been resolved after multiple IRS notices. The IRS typically sends out a series of notices (such as CP14, CP501, CP503) to inform you of the balance owed, but if those go unpaid or unanswered, the IRS escalates the situation by sending LT11. This is one of the last warnings before they start taking your assets.

Key Details in Notice LT11

The LT11 notice provides important information about your unpaid tax balance and the IRS’s intent to levy your property. Key elements typically include:

• The total amount you owe, including taxes, penalties, and interest.

  
  

• A warning that the IRS intends to seize your assets if the debt remains unpaid.

  
  

• Information about your right to request a Collection Due Process (CDP) hearing, which gives you an opportunity to challenge the levy or negotiate a payment plan.

  
  

• A deadline to respond before the IRS proceeds with the levy.

  
  

What Should You Do After Receiving IRS Notice LT11?

Here’s how you should handle receiving IRS Notice LT11:

1. Read the Notice Carefully: The LT11 will detail the exact amount you owe and explain what actions the IRS is planning to take if you don’t respond. Review this information closely to make sure the debt amount is accurate.

   
   

2. Respond by the Deadline: You typically have 30 days from the date of the LT11 notice to request a Collection Due Process (CDP) hearing. This is critical because requesting a CDP hearing halts the IRS from taking levy action while your case is reviewed. If you miss this window, the IRS can begin seizing your assets.

   
   

3. Request a CDP Hearing: If you disagree with the IRS’s decision to levy your property or believe you have legitimate reasons why you cannot pay, you can request a CDP hearing. During the hearing, you’ll have the chance to:

   
   

   • Dispute the amount of tax owed.

     
     

   • Propose a payment plan or Offer in Compromise (settling the debt for less than the total amount).

     
     

   • Argue that a levy would create significant financial hardship.

     
     

   This hearing can buy you more time and provide options to resolve the debt without a levy.

   
   

4. Pay the Debt or Set Up a Payment Plan: If you agree with the IRS’s assessment and can pay the full amount, doing so will stop the levy. However, if you can’t afford to pay the full balance, consider applying for an installment agreement (a payment plan) or submitting an Offer in Compromise.

   
   

5. Consult a Tax Professional: If you’re unsure how to proceed, it’s a good idea to seek advice from a tax professional or a tax attorney. They can help you navigate the process, request the CDP hearing, or negotiate with the IRS on your behalf.

   
   

Consequences of Ignoring IRS Notice LT11

Ignoring LT11 can have serious financial consequences. If you don’t respond by the deadline or fail to resolve your tax debt, the IRS will move forward with levying your property. Here are some actions the IRS might take:

1. Wage Garnishment: The IRS can notify your employer to withhold a portion of your wages and send it directly to the IRS to satisfy your tax debt.

   
   

2. Bank Account Levy: The IRS can freeze your bank account and seize the funds up to the amount of your tax debt. This can cause major disruptions to your finances.

   
   

3. Seizing Assets: In extreme cases, the IRS can seize personal property, such as your car, real estate, or other valuable assets.

   
   

4. Federal Tax Lien: The IRS may file a lien against your property, which can affect your credit score and complicate efforts to sell or refinance your assets.

   
   

How to Avoid Future IRS Collection Notices

While receiving an LT11 notice is serious, it’s important to take steps to avoid future collection actions:

1. File and Pay Taxes on Time: The best way to avoid IRS notices is by filing your tax return on time and paying your taxes when due. Even if you can’t pay the full amount, setting up a payment plan early can prevent these notices.

   
   

2. Respond to Earlier IRS Notices: The IRS sends several notices before issuing an LT11. By responding to earlier notices, like CP14 or CP504, you can address the issue before it escalates to a final levy notice.

   
   

3. Maintain Good Records: Keep accurate records of your income, expenses, and tax payments to ensure your tax filings are correct and that you can easily resolve any discrepancies with the IRS.

   
   

Conclusion

IRS Notice LT11 is a serious warning that the IRS intends to levy your property to collect unpaid taxes. However, it’s also your final opportunity to resolve the debt before the IRS takes aggressive enforcement actions. By responding promptly, requesting a CDP hearing if needed, or working out a payment plan with the IRS, you can avoid levies and protect your assets.

If you’re unsure of how to proceed, don’t hesitate to seek professional help. A tax professional can guide you through the process and help you find the best solution for resolving your tax debt.

Call Turner Business Solutions at (316) 285-0125 if you received an LT11 notice and need assistance resolving it. You can also schedule a free consultation online.