Understanding LT11: Final Notice of Intent to Levy & Your Rights
Introduction
Receiving an IRS notice can be an unsettling experience, especially when it's the LT11: Final Notice of Intent to Levy. This notice indicates that the IRS plans to seize your property to satisfy a tax debt. While alarming, it’s crucial to understand what this notice means and what rights you have in responding to it.
What is LT11?
The LT11 notice, also known as the 'Final Notice of Intent to Levy and Notice of Your Right to a Hearing,' is a notification from the IRS indicating its intent to levy your assets. It’s not just a warning; it signifies that the IRS has completed the required protocol and is prepared to take action if the debt is not resolved.
This notice is typically issued after prior notices—such as CP504, which serves as a warning of an impending levy—have been ignored or unresolved. The LT11 is your final opportunity to address the debt voluntarily or to contest the levy effectively.
Your Rights When Receiving LT11
Upon receiving an LT11 notice, you have specific rights designed to protect you from unjust loss of property:
Right to a Collection Due Process Hearing (CDP)
You are entitled to request a Collection Due Process (CDP) hearing within 30 days from the date on the LT11 notice. During this hearing, you can work with a settlement officer to propose alternative solutions, contest the debt, or present a case for financial hardship.
Right to Appeal
If you disagree with the outcome of your CDP hearing, you can appeal the decision in Tax Court. This appeal must be filed in a timely manner to avoid enforced collection activities.
Right to Representation
Under the Taxpayer Bill of Rights, you have the right to be represented by a tax professional in dealing with the IRS. This can be particularly beneficial during the CDP process, as a tax professional can help navigate complex tax laws and negotiate effectively with the IRS.
Steps to Take Upon Receiving an LT11 Notice
Receiving an LT11 notice requires immediate action to prevent asset seizure. Here’s a step-by-step guide on how to proceed:
1. Review the Notice
Carefully read the LT11 notice and verify its details, including the amount owed and the deadline for response. Ensure that the information is accurate, and contact the IRS if there are discrepancies.
2. Request a CDP Hearing
To exercise your right to a hearing, submit Form 12153 (Request for a Collection Due Process or Equivalent Hearing) to the address specified on the notice. Ensure this is done within 30 days of the notice date to halt the levy process temporarily.
3. Explore Resolution Options
- Installment Agreement: Arranging a payment plan with the IRS can prevent the levy.
- Offer in Compromise: If you qualify, you may settle your debt for less than the full amount owed. This is subject to IRS approval.
- Currently Not Collectible Status: If you’re facing financial hardship, you may request to have your account placed in this status until your financial situation improves.
4. Pay the Balance (If Possible)
If you can pay the owed amount, either partially or in full, it’s advisable to do so to immediately stop any collection actions.
Additional Considerations
Beyond immediate resolution of the LT11 notice, it’s essential to address underlying tax issues to prevent future occurrences. Working with a tax professional can help ensure compliance with tax laws and help you develop a long-term tax strategy.
Conclusion
The LT11 notice is a serious communication from the IRS. However, by understanding your rights and taking prompt action, you can effectively manage and resolve your tax debt. For comprehensive assistance and to explore your options, visit our dashboard for personalized support from our team of tax experts.