Understanding IRS Letter LT11: Your Rights and Options

Understanding IRS Letter LT11: Your Rights and Options

Receiving a notice from the IRS can be a daunting experience, especially when it concerns a potential levy on your assets. The IRS Letter LT11, known as ‘Intent to Levy’, is a critical document that requires your immediate attention. This article aims to provide a thorough understanding of this notice, what your rights are, and the actions you can take to resolve the situation.

What is IRS Letter LT11?

The IRS Letter LT11 is an official notification indicating the IRS's intent to levy your property or assets. The notice is typically issued when you have unpaid taxes and previous efforts to collect the owed amounts have failed. This letter is not just a reminder; it's a serious warning that a levy could occur within 30 days if no action is taken.

Your Rights as a Taxpayer

As a taxpayer, you have specific rights when it comes to resolving tax issues, especially concerning levies. The IRS Taxpayer Bill of Rights outlines these which are detailed in IRS Publication 1. Key rights relevant to a levy include:

• The Right to Be Informed: The IRS must provide you clear explanations about the notices and your obligations.
• The Right to Challenge the IRS’s Position and Be Heard: You can object to a levy or request a hearing before it proceeds.
• The Right to Pay No More than the Correct Amount of Tax: Only the debt you owe, plus penalties and interest, can be collected.

Understanding the Levy Process

A levy allows the IRS to legally seize your property to satisfy a tax debt. The process involves several steps, starting with a notice and demand for payment, which escalates to the LT11 notice if unresolved. The IRS will then proceed to levy if no satisfactory arrangement is made within 30 days.

Options Available to You

Upon receiving a Letter LT11, you have several options:

• Pay the Full Amount: The simplest solution is paying the amount owed to avoid the levy entirely.
• Request a Payment Plan: You can negotiate an installment agreement with the IRS to pay in manageable portions over time.
• Submit an Offer in Compromise: This option allows you to settle your tax debt for less than the full amount if paying in full would cause financial hardship.
• File for a Collection Due Process (CDP) Hearing: Form 12153 must be submitted within 30 days to request a hearing, which halts the levy process until resolved.

Actionable Steps

Taking timely and effective action upon receiving an LT11 is crucial:

1. Review the Notice Carefully: Check the details for accuracy and understand your debt situation.
2. Contact the IRS: Reach out immediately to discuss options and indicate your intent to resolve the issue.
3. Seek Professional Help: Engage a tax professional or an attorney specializing in tax matters for guidance.
4. Submit Required Forms: Whether it's arranging payment plans or requesting a hearing, ensure all documentation is complete and submitted promptly.

Ignoring the LT11 notice can lead to severe consequences such as bank levies, wage garnishments, or property seizures. Acting swiftly enhances your chances of mitigating these outcomes.

Conclusion

Dealing with an IRS notice of intent to levy requires clarity, action, and often, professional guidance. By understanding your rights and knowing your options, you can work toward a resolution that offers financial stability and peace of mind.

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