What Is the LT11?
A taxpayer receives the LT11 after the IRS has sent a progression of increasingly threatening notices. It is the IRS’s declaration that the taxpayer is about to be levied. This could be done by seizing assets, freezing account funds, or garnishing income. The IRS is legally obligated to send the LT11 via certified mail 30 days before it can begin these aggressive debt collection tactics.
Toward the top of the LT11, you’ll see its title: Notice of Intent to Levy and Your Collection Due Process to a Hearing. That hearing gives you the opportunity to plead your case to the IRS and hopefully come to an agreement on resolving your tax debt.
In the top right corner of the LT11, it shows the notice date. You have 30 calendar days from that date to reach an agreement with the IRS before it levies you. Beneath that is the Case Reference Number and Taxpayer Identification Number (your Social Security Number), which are needed when speaking with the IRS about the LT11 you received.
The LT11 uses threatening language in order to scare the taxpayer into paying their entire tax bill immediately. However, further down the LT11, it does give you options to pay the tax bill over time.
You’ll also see a break down of your total tax debt on the LT11. It will give the years you owe for, the amount for each year, the interest on each year, and the penalties for each year.
At the very bottom of the LT11, the IRS provides a payment coupon to pay the tax bill immediately.
What is the LT11 threatening?
The IRS intends to seize your property or rights to your property if you don’t pay your full tax debt immediately or reach an agreement with them. This includes:
- Wages, real estate commissions, and other income
- Bank accounts
- Personal assets (such as your car or home)
- Social Security benefits
A seriously delinquent tax debt could also mean that your United States passport could be denied or revoked.
On the LT11, the IRS indicates that it can and will talk to others about your situation in an effort to learn more about any assets of yours they can levy. This includes your neighbors, employers, employees, and your bank’s employees.
What should you do if you receive the LT11?
The best thing you can do is to pay your entire tax liability immediately. Unfortunately, for many people, that is beyond their means. In that case, it’s time to request an appeals hearing in order to reach an agreement with the IRS for a payment plan or a settlement. This can be done by sending Form 12153 to the IRS.
However, if you owe more than $10,000, things can get more complicated and you could wind up in a situation that isn’t sustainable. We recommend that you hire a licensed tax professional to make sure you reach the best possible agreement with the IRS for your particular tax situation.
If you have received the LT11, we can help you. Justice Tax, LLC specializes in resolving taxpayer’s tax issues, including IRS and state levies, garnishments, unfiled tax returns, and more. By calling us at 888-545-6007, we can provide you with a completely free, no-obligation consultation to go over your tax concerns with you and help you achieve freedom from your tax situation.
Fill out the form for a free and confidential consultation.