Understanding IRS LT11: Important Information for Taxpayers

What is the IRS LT11 Notice?

The IRS LT11 notice, also known as the "Final Notice of Intent to Levy and Notice of Your Right to a Hearing," is a formal communication sent by the Internal Revenue Service to taxpayers who have unpaid tax debts. This notice is a critical step in the IRS collection process, indicating that the agency intends to levy your assets, including bank accounts, wages, or other property, if the tax debt remains unpaid.

Understanding the Significance of LT11

Receiving an LT11 notice is serious. It means that the IRS has already attempted to collect the debt through previous notices and has not received a satisfactory response. The LT11 serves two primary purposes:

Notification of Intent to Levy: The notice informs the taxpayer that the IRS plans to take enforced collection actions if the debt is not resolved.
Right to a Hearing: It also informs taxpayers of their right to request a hearing to contest the levy. This is an important opportunity for taxpayers to present their case and potentially negotiate terms with the IRS.

What Should You Do If You Receive an LT11?

Receiving an LT11 notice can be alarming, but it is crucial to take immediate action. Here are steps to consider:

Read the Notice Carefully: The LT11 will include details about the amount owed, previous notices sent, and the deadline for responding. Understanding these details is essential.
Determine Your Options: You typically have several options, including:

Paying the full amount owed
Setting up a payment plan with the IRS
Requesting an Offer in Compromise to settle for less than the full amount

Request a Hearing: If you believe there are valid reasons to contest the levy, you can request a hearing within 30 days of receiving the LT11. This request should be made in writing and sent to the IRS office specified in the notice.
Consult a Tax Professional: Navigating IRS notices can be complex. Consulting with a tax professional can help you understand your options and develop an effective response strategy.

Potential Consequences of Ignoring the LT11

Ignoring the LT11 notice can lead to severe consequences. If you do not respond, the IRS may proceed with the levy, which can result in the seizure of your wages, bank accounts, and other assets. Additionally, the IRS may file a Federal Tax Lien against your property, which can affect your credit score and ability to secure loans.

Preventive Measures and Future Considerations

To avoid receiving an LT11 notice in the future, consider the following preventive measures:

File Your Tax Returns on Time: Ensure that you file your tax returns by the deadline, even if you cannot pay the full amount owed.
Stay Informed: Regularly monitor your tax situation and stay informed about any notices from the IRS.
Communicate with the IRS: If you encounter financial difficulties, proactively communicate with the IRS to explore payment options.

Conclusion

The IRS LT11 notice is an important communication that requires immediate attention. Understanding its implications and taking appropriate action can help you navigate your tax obligations more effectively. By staying informed and proactive, you can manage your tax responsibilities and avoid the more severe consequences of enforced collection actions.