Letter LT11: Intent to Levy - Your Rights and Options

Understanding IRS Letter LT11: Intent to Levy

Receiving a Letter LT11 from the IRS can be daunting. This notice is an official notification that the IRS intends to levy your assets due to unpaid taxes. It is crucial to understand the implications of this notice and to know your rights and options.

What is a Levy?

A levy is a legal seizure of your property to satisfy a tax debt. Unlike a lien, which is a claim against your property, a levy means the IRS can take the property to pay your debt. This includes garnishing wages, taking money from your bank account, and seizing and selling your vehicle or real estate.

Key Aspects of Letter LT11

Letter LT11 informs you of the IRS’s intent to levy. Here's what it usually contains:

• The amount you owe, including penalties and interest.
• A deadline by which you must respond to the notice.
• Information about your right to a hearing.

Your Rights

Upon receiving Letter LT11, you have certain rights, including:

• The right to contest the levy by requesting a Collection Due Process (CDP) hearing within 30 days of the notice date.
• The right to propose an alternative payment plan, such as an installment agreement or an offer in compromise.
• The right to seek adjustment if you believe the levy is based on an incorrect assessment.

Steps to Take When You Receive Letter LT11

It's critical to take timely action upon receiving this notice. Below are the steps you can take:

• Review the Notice: Carefully read through the entire notice. Ensure that the details such as the amount owed and deadlines are correct.
• Assess Your Financial Situation: Gather all financial records, including tax filings, to ascertain if the IRS’s claims are accurate.
• Contact the IRS: If you agree with what you owe, you could discuss payment options with the IRS. Call the number provided on the notice for direct communication.
• Consider a CDP Hearing: If you disagree with the levy or need more time to make arrangements, request a CDP hearing using Form 12153. This needs to be filed within 30 days of receiving the letter.
• Settle the Debt: If possible, pay the amount in full to avoid further complications.
• Seek Professional Help: Tax professionals can provide guidance specific to your situation and help negotiate with the IRS.

Collection Due Process (CDP) Hearing

Requesting a CDP hearing is a vital step if you seek to contest the levy. During the hearing, you can discuss:

• Disputing the amount you owe.
• Proposing a payment plan.
• Claiming innocent spouse relief or other defenses.

Filing for a CDP hearing stops the levy until the hearing officer makes a decision.

Preventing Future Levies

To prevent further levies:

• File returns promptly. Even if you cannot pay, timely filing can prevent penalties.
• Pay taxes as due, or make payment arrangements proactively.
• Communicate with the IRS if you experience financial difficulties. The IRS can provide solutions.

Conclusion

Receiving Letter LT11 is serious but manageable. Understanding your rights and promptly taking action can mitigate the consequences. For personalized help, consider consulting with a tax professional who can provide expertise tailored to your situation.

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