Taxpayer’s Guide to IRS Letter LT11

How to Protect Your Assets After You Receive IRS Letter LT11

The LT11 is a final warning sent via certified mail that the IRS intends to levy your property or rights to property. To protect your assets, you need to respond to this letter promptly and make arrangements to pay or settle your tax liability as soon as you can.

If you have questions or need help, contact us today — the tax attorneys at the W Tax Group have extensive experience helping taxpayers negotiate the best resolution possible with the IRS.

Why Did I Receive Letter LT11?

The IRS sends Letter LT11 when a taxpayer has had an unpaid tax liability for a significant amount of time. In most cases, you will receive several other IRS letters before you get the LT11.

Prior to sending LT11, the IRS sends CP501 (Reminder of Balance Due Notice) and CP502 (Reminder of Balance Due Notice). If you still haven’t responded, the IRS will send CP503 (Reminder of Balance Due). Failure to respond to the third reminder leads to Notice CP504 (Notice of Intent to Levy) and/or LT11. Both CP504 and LT11 alert you that the IRS plans to seize your assets.

How Long Do I Have to Respond to the LT11?

The notice gives you 30 days to respond. The due date is on the left-hand side of the notice. If you don’t respond by the due date, the IRS will continue to move forward with its plans to levy your assets.

What If I Disagree with the Information on LT11?

If you don’t agree with the amount due on the notice, you have the right to appeal. Depending on the situation, you can request an Audit Reconsideration, apply for an Offer in Compromise based on Doubt as to Liability, or utilize your right to a Collection Due Process Hearing with the Office of Appeals.

If the IRS is mistaken and you have paid the bill, contact the IRS immediately to provide proof of payment information. If you made the payment, the problem will now be resolved except for any penalties and interest you may owe.

What if I Don’t Respond or Pay?

The notice makes clear that if you don’t pay the amount due by the due date, the IRS may seize (levy) your property or rights to property after the due date. The property the IRS may seize (levy) includes wages and other income, bank accounts, business assets, personal assets, Social Security benefits, and tax refunds. In addition, under the Fixing America’s Surface Transportation Act, your passport can be revoked.

How Can I Avoid the Levy?

You may want to hire a tax attorney with experience in situations like these. As indicated above, you have the legal right to request a Collection Due Process or Equivalent Hearing. This will stop the IRS from issuing a levy or seizing your assets.

The request for a Collection Due Process or Equivalent Hearing is filed using IRS Form 12153 (Request for a Collection Due Process or Equivalent Hearing). Once you file the request for an appeals hearing, you effectively prevent the IRS from levying your property, and you also entitle yourself to a hearing. You get to work directly with an IRS Settlement Officer, which means that you position yourself to resolve the matter outside of the IRS Collection Division.

Generally, from the time the appeal is filed, it takes the IRS four to eight months to process it. Once the appeal request has been processed, you can expect a letter from the IRS Settlement Officer to schedule a hearing date. Generally, the hearing date is two to four weeks after you receive the letter from the Settlement Officer.

What if I Don’t Have Enough Money to Pay the Taxes?

If you don’t have the money to pay the tax bill in full, you can contact the IRS to arrange a payment plan. Regardless of your situation, don’t ignore this notice even if you don’t have the money to pay.

Call the IRS immediately at the phone number on the form to speak with an agent and tell them about your situation. But keep in mind — you don’t have to deal with this issue on your own. A tax attorney can generally help you work out an affordable arrangement with the IRS. They understand the options and can help steer you toward the best solution for your financial situation.

Here are some of the tax resolution options that can help you avoid a levy on your assets:

  • Installment Agreement: A monthly payment plan which allows you to pay off the tax liability over a certain number of years.
  • Offer in Compromise: This is where the IRS agrees to allow taxpayers that qualify to settle their tax bill for less than the full amount owed.
  • Currently Non-Collectable: The IRS will not require you to pay your tax bill if it causes severe economic hardship. To qualify for uncollectible status, you will need to prove to the IRS you cannot afford to pay both your living expenses and tax bill.

There are also other resolution options that we can discuss when you contact us. We help people deal with unpaid IRS and state taxes every day, and we would love to help you.

If you received IRS LT11 or are experiencing any other IRS or state tax problems, contact the team of tax attorneys at The W Tax Group for your free tax case review. We will evaluate your finances and situation to determine whether you qualify for an IRS program to settle your back taxes. Call us directly now at (877) 500-4930.