Receiving an LT11 letter from the IRS can be overwhelming. Officially titled the “Final Notice of Intent to Levy and Notice of Your Right to a Hearing,” this letter signals that the IRS is about to take serious action against you to collect unpaid taxes. If you’ve received an LT11, it’s crucial to understand what it means, what steps you need to take, and why acting quickly is in your best interest.
What Is the LT11 Letter?
The LT11 is one of the last warnings the IRS sends before initiating a levy on your assets. A levy allows the IRS to legally seize your property, wages, bank accounts, or other assets to settle your outstanding tax debt. The letter also informs you of your right to request a Collection Due Process (CDP) hearing, which is a critical opportunity to challenge the levy or negotiate an alternative resolution.
Why Did I Receive an LT11?
The IRS typically sends the LT11 after multiple attempts to contact you regarding unpaid taxes have gone unanswered or unresolved. It’s a signal that they’ve exhausted their initial communication efforts and are ready to escalate collection actions. Reasons you might receive this letter include:
- Failing to pay taxes owed after filing a return.
- Ignoring previous notices from the IRS.
- Accruing penalties and interest that remain unpaid.
What Happens If I Don’t Respond?
Ignoring an LT11 letter can lead to severe consequences. Once the IRS issues this notice, they are legally allowed to begin levying your assets after 30 days. This can result in:
- Wage garnishments.
- Bank account levies.
- Property seizures.
- Liens on your home or other assets.
Additionally, penalties and interest will continue to accumulate, making your financial situation even more challenging.
How Can I Respond to an LT11?
The LT11 letter provides a short window of opportunity to address your tax debt before the IRS takes action. Here’s what you can do:
- Request a CDP Hearing: Filing for a Collection Due Process hearing within 30 days of receiving the LT11 stops the levy process temporarily. During the hearing, you can present your case and explore alternative solutions, such as an installment agreement or offer in compromise.
- Pay the Debt in Full: While not always feasible, paying the amount owed outright will immediately resolve the issue and stop further IRS actions.
- Work with a Tax Professional: A tax resolution expert can analyze your situation, recommend the best course of action, and negotiate with the IRS on your behalf.
Why You Shouldn’t Go It Alone
Navigating the IRS system after receiving an LT11 letter can be complicated and overwhelming. Filing for a CDP hearing or negotiating a settlement requires a deep understanding of tax law and IRS procedures. Without professional help, you risk making costly mistakes or missing critical deadlines that could escalate your problems.
Take Action Today
If you’ve received an LT11 letter, time is of the essence. Ignoring it or delaying action will only make matters worse. A tax resolution expert can step in to protect your assets, stop the levy process, and help you resolve your debt in a way that works for you.
At ONeill Tax Resolution, we specialize in helping individuals and businesses facing serious IRS actions, including LT11 letters. Don’t let the IRS take control of your finances—call us today for a free consultation and let us help you take back control.
