Receiving an IRS LT11 notice can be alarming, especially if you are unsure about the implications and steps to take. This guide will help you understand what an LT11 notice means and provide clear instructions on how to respond effectively, ensuring you manage your tax obligations with confidence.

What is an LT11 Notice?

The IRS sends an LT11 notice, also known as a Final Notice of Intent to Levy and Notice of Your Right to a Hearing, when you have a seriously delinquent tax debt. This notice informs you that the IRS intends to levy (seize) your property or rights to property, including wages and bank accounts, to satisfy the tax debt unless you take action within 30 days.

Why Did I Receive an LT11 Notice?

You received an LT11 notice because you have an unpaid tax debt, and previous attempts by the IRS to collect the debt have been unsuccessful. This notice is a final warning before the IRS takes enforcement actions to collect the debt. The IRS sends this notice to prompt you to resolve your tax liability or request a Collection Due Process (CDP) hearing.

Key Information Included in the LT11 Notice

The notice specifies the total amount you owe, including any penalties and interest that have accrued since the original tax assessment. For example, if you owed $5,000 initially, the notice might now show a balance of $5,500 due to accrued interest and penalties. It includes a deadline by which you must take action to avoid the levy. The notice provides detailed instructions on how to pay your balance or request a CDP hearing. Additionally, it includes your taxpayer identification number, which is necessary for making payments or contacting the IRS.

Steps to Take After Receiving an LT11 Notice

First, review the notice carefully to understand the total amount you owe and the deadline for taking action. Compare the information provided by the IRS with your payment records and tax returns to ensure accuracy. If everything matches, proceed to make a payment or contact the IRS to discuss payment options.

You can pay the amount owed using several methods. The fastest and easiest way is through the IRS Direct Pay system, which allows you to pay directly from your bank account. Alternatively, you can use the Electronic Federal Tax Payment System (EFTPS) or send a check or money order to the address provided in the notice. Be sure to include the payment voucher attached to the notice and write your taxpayer identification number on the check or money order.

If you cannot pay the full amount, consider setting up an installment agreement with the IRS. Contact the IRS using the information provided in the notice to discuss your options and find a payment plan that works for you. You also have the right to request a Collection Due Process (CDP) hearing within 30 days to appeal the proposed levy action. This hearing allows you to present your case and seek alternative solutions to resolve your tax debt.

Payment Options

The IRS provides several payment options to settle your outstanding balance. The fastest and easiest is through the IRS Direct Pay system, which allows you to pay directly from your bank account. Alternatively, you can use the Electronic Federal Tax Payment System (EFTPS) or send a check or money order to the address provided in the notice. Be sure to include the payment voucher attached to the notice and write your taxpayer identification number on the check or money order. If you cannot pay the full amount, contact the IRS to discuss setting up an installment agreement.

What Happens If You Ignore the LT11 Notice?

Ignoring the LT11 notice can lead to severe consequences. The IRS will proceed with the levy, seizing your wages, bank accounts, or other assets to collect the debt. Additionally, a federal tax lien may be filed against your property, affecting your credit score and ability to sell or refinance. For more detailed information on the process and potential consequences, check out our article here. It’s crucial to respond promptly to avoid these escalating actions.

Summarizing Key Points

Receiving an LT11 notice means you have a seriously delinquent tax debt, and the IRS intends to levy your property unless you take immediate action. Review the notice, compare it with your records, and contact the IRS to discuss your options. Paying the amount due, setting up a payment plan, or requesting a CDP hearing are effective ways to manage your tax obligations. Ignoring the notice can lead to severe consequences, including additional penalties, interest, and enforcement actions by the IRS.

Don’t let a seriously delinquent tax debt with the IRS cause you stress. Take action today by reviewing your LT11 notice and exploring your payment options.