LT11: Final Notice of Intent to Levy & Your Rights

Introduction

Receiving an LT11 notice from the IRS can be an intimidating experience. This "Final Notice of Intent to Levy and Notice of Your Right to a Hearing" signals that the IRS is poised to take collection action against you. Understanding the implications of this notice and knowing your rights can make a significant difference in resolving the issue. As a CPA and tax professional, I will guide you through the intricacies of the LT11 notice, the steps you need to take, and how to protect your rights.

Understanding the LT11 Notice

What is an LT11 Notice?

The LT11 is a critical communication from the IRS, indicating their intention to levy your assets. It is sent after prior attempts to collect taxes have failed. The notice informs you that the IRS plans to seize your property or rights to property to satisfy your tax debt. This might include garnishing wages, levying bank accounts, or seizing other assets.

Your Rights Under the LT11 Notice

According to IRS guidelines, you have the right to a Collection Due Process (CDP) hearing before the levy action is taken. This is a critical opportunity to present your case and explore alternatives to levy, such as installment agreements or offers in compromise.

IRS Procedures and Requirements

Responding to the LT11 Notice

Upon receiving an LT11 notice, you have 30 days to request a CDP hearing. This is done by submitting Form 12153, "Request for a Collection Due Process or Equivalent Hearing." During this hearing, you can challenge the levy and propose alternative payment arrangements.

Forms and Documentation

• Form 433-A: Collection Information Statement for Wage Earners and Self-Employed Individuals.
• Form 433-F: Collection Information Statement, simpler than Form 433-A, used for individuals with straightforward financial situations.
• Form 656: Offer in Compromise, a proposal to settle your tax debt for less than the full amount you owe.

These forms gather information about your financial situation, which the IRS will assess to determine your ability to pay.

Key IRS Publications and Tax Code Sections

• Publication 594: The IRS Collection Process.
• Publication 1660: Collection Appeal Rights.
• IRC Section 6330: Notice and opportunity for hearing before levy.

Specific Examples

Consider a taxpayer who owes $15,000 in back taxes. After receiving the LT11 notice, they request a CDP hearing and submit Form 433-A, showing a monthly income of $4,000 and expenses of $3,800. The IRS may determine that they can afford a partial payment installment agreement, allowing them to pay $200 per month.

Alternatively, a taxpayer with a $50,000 tax debt and limited assets might qualify for an offer in compromise, using Form 656, to settle the debt for $15,000.

Common Mistakes to Avoid

• Ignoring the LT11 Notice: Failing to respond can lead to immediate levy actions.
• Missing the CDP Hearing Request Deadline: You must submit Form 12153 within 30 days of the notice date.
• Inaccurate Financial Information: Ensure all forms are accurate to avoid delays or denials.

Frequently Asked Questions

FAQ Section

• What happens if I ignore the LT11 notice?

  If you ignore the notice, the IRS may proceed with levying your assets.

• How do I request a CDP hearing?

  Submit Form 12153 to request a Collection Due Process hearing within 30 days.

• Can I appeal the IRS decision after a CDP hearing?

  Yes, if you disagree with the outcome, you can appeal to the Tax Court.

• What is the difference between Form 433-A and 433-F?

  Form 433-A is more detailed and used for complex financial situations, while Form 433-F is simpler.

• Is an offer in compromise always accepted?

  No, the IRS evaluates offers based on your financial situation and ability to pay.

• How long does the IRS take to decide on a CDP hearing?

  It varies, but you should receive a decision within a few months.

• Can I handle the LT11 notice myself?

  While possible, consulting a tax professional is advisable for navigating complex IRS procedures.

• Where can I find more information?

  Visit the IRS Dashboard for resources and support.

Conclusion

Receiving an LT11 notice is a serious matter, but you have rights and options to address it. By understanding the process and taking prompt action, you can prevent the IRS from levying your assets. Ensure you respond promptly, provide accurate information, and consider professional assistance to navigate these complexities. For more guidance, visit our Dashboard for resources and tools.

If you're facing an LT11 notice, don't delay. Act now to protect your assets and explore your options with the IRS. Visit our Dashboard to get started today.