Understanding IRS LT11: The Notice of Intent to Levy

What is IRS LT11?

The IRS LT11, also known as the Notice of Intent to Levy, is a formal communication sent by the Internal Revenue Service to taxpayers who have outstanding tax liabilities. This notice serves as a warning that the IRS is planning to seize assets, including bank accounts, wages, and property, to satisfy unpaid taxes. It is part of the IRS's collection process and signifies that the agency is serious about recovering the debts owed to the federal government.

When is LT11 Issued?

The LT11 is typically issued after the IRS has attempted to collect unpaid taxes through various means, such as sending prior notices like the CP14 (Notice of Balance Due) and CP504 (Final Notice of Intent to Levy). If the taxpayer has not responded or made arrangements to pay the owed amount, the IRS escalates the situation by sending the LT11. This notice indicates that the taxpayer has a limited timeframe to address the situation before the IRS initiates asset seizure.

Contents of the LT11

The notice contains important information, including:

• The amount owed, including any penalties and interest
• Details about the assets that may be levied
• A deadline for taking action to prevent the levy
• Instructions on how to appeal or respond to the notice

Implications of Receiving an LT11

Receiving an LT11 is a serious matter. It indicates that the IRS is prepared to take aggressive measures to collect the debt. If the taxpayer does not respond adequately, the IRS can proceed with levying bank accounts, garnishing wages, or seizing property. This can lead to significant financial hardship and disruption in the taxpayer's life.

Steps to Take Upon Receiving an LT11

If you receive an IRS LT11, it is essential to take immediate action. Here are some steps to follow:

1. Review the Notice: Understand the amount owed and the details provided in the LT11.
2. Contact the IRS: Reach out to the IRS as soon as possible to discuss your account. You may be able to negotiate a payment plan or settle the debt.
3. Consider Professional Help: If the situation is complex or overwhelming, consider hiring a tax professional or attorney who specializes in tax issues.
4. File an Appeal: If you believe the levy is unjustified, you have the right to appeal the decision. Instructions for filing an appeal are included with the LT11.
5. Explore Payment Options: Look into options for paying off your tax debt, such as an Installment Agreement or Offer in Compromise.

Preventing Future Notices

Once you have addressed the immediate concerns of the LT11, it is crucial to take steps to prevent future tax issues. Here are some tips:

• Stay Informed: Regularly monitor your tax obligations and stay informed about deadlines.
• Budget for Taxes: Set aside funds to cover your tax liabilities to avoid falling behind.
• Communicate with the IRS: If you anticipate difficulties in meeting your tax obligations, proactively communicate with the IRS to discuss your options.

Conclusion

The IRS LT11 Notice of Intent to Levy is a critical document that signals the IRS’s intent to take action against unpaid tax debts. Understanding the contents and implications of this notice is essential for any taxpayer who receives it. By taking prompt action and exploring available options, taxpayers can mitigate the impact of a levy and work towards resolving their tax issues. Remember, communication with the IRS and seeking professional assistance can often lead to more favorable outcomes.