LT11: Final Notice of Intent to Levy & Your Rights
Understanding the LT11 Notice
The LT11 notice, also known as the 'Final Notice of Intent to Levy and Notice of Your Right to a Hearing', is a critical document sent by the Internal Revenue Service (IRS) signaling an advanced stage in tax collection efforts. Receiving this notice indicates that the IRS plans to levy your personal assets, including bank accounts, wages, or other property, to satisfy an outstanding tax debt.
What is the Purpose of an LT11 Notice?
The LT11 notice serves two primary purposes: it notifies taxpayers of the IRS's intent to levy and informs them of their right to a Collection Due Process (CDP) hearing. This step is part of the IRS's legal obligation to provide taxpayers a fair chance to resolve their tax issues before seizing assets.
Legal Foundations of LT11
According to IRS Code Section 6331(d), before a levy can take place, the IRS must provide a 30-day notice to the taxpayer. The LT11 fulfills this requirement by explaining both the impending levy and how to challenge it or arrange alternative solutions.
Your Rights Under the LT11 Notice
Right to a Collection Due Process Hearing
One of the most critical rights afforded by the LT11 notice is the right to request a Collection Due Process (CDP) hearing. This hearing allows you to present your case before an impartial officer and explore other payment arrangements, such as an Installment Agreement or Offer in Compromise.
Other Rights
Beyond the CDP hearing, taxpayers have the right to be represented by a qualified tax professional, the right to appeal any IRS decision, and the right to seek Taxpayer Advocate assistance.
Actionable Steps to Take After Receiving an LT11 Notice
1. Don’t Ignore the Notice
The stakes are high when it comes to an LT11 notice, and ignoring it will not make it go away. Inaction can lead to asset seizure, so addressing the notice promptly is crucial.
2. Review Your Tax Situation
Assess your financial situation and tax records. Ensure that the debt is accurate and consider potential reasons that might justify an appeal or defense.
3. Request a CDP Hearing
If you disagree with the levy, request a CDP hearing within 30 days of the notice date. Submit the request in writing using Form 12153, 'Request for a Collection Due Process or Equivalent Hearing'.
4. Explore Payment Options
- Installment Agreement: Arrange to pay your debt over time.
- Offer in Compromise: Settle your debt for less than the full amount.
- Currently Not Collectible Status: Temporarily delay collections if you can't pay.
5. Consult a Tax Professional
It’s advisable to consult a tax professional to guide you through the process, optimize your case, and possibly negotiate on your behalf.
Conclusion
The LT11 notice is a serious warning of the IRS's intent to levy your property. While it may seem daunting, understanding your rights and options can significantly alter the outcome. Prompt action, informed decisions, and professional assistance are key to resolving the situation efficiently.
For expert help in navigating LT11 issues or other IRS notices, visit our dashboard to connect with a professional.