IRS LT11 Notice of Intent to Levy: What It Means and What to Do

If you’ve received Letter 11, that is the IRS’s notification that it plans to levy your property. Similar to CP297, & LT1058, this notification gives the IRS the legal right to seize your assets within 30 days. That includes levying your wages, bank accounts, and other assets if you don't address your outstanding tax balance or appeal the levy in 30 days. Here is an example of an IRS LT11 Notice. 

Key takeaways

• Respond in 30 days or the IRS will levy your assets.
• You can request a hearing, pay in full, or set up payments.
• If you ignore the notice, the IRS can garnish wages or seize assets.

How Long Do You Have to Respond to LT11?

The IRS gives you 30 days to respond from the date on the notice. The final date for a response is noted in the letter, under the "Amount Due Immediately" section. If you do not take action by that date, the IRS can start seizing your assets. The IRS considers your response on time if it is postmarked by the deadline, but to be on the safe side, you should contact the agency by phone or online before the deadline. 

What Are the Options With Letter 11?

The way you should respond to this IRS notice depends on whether you agree with the tax bill, can afford to pay in full, or can't afford to pay. Here is an overview of the main response options based on the situation.

You Don't Agree With the Tax Due Shown on the Notice

If you have not had a chance to dispute your tax balance yet, you may do so within 30 days by filing  Form 12153 to request a Collection Due Process hearing. If you've already had a chance to dispute the balance (for example, the tax due was assessed in an audit and you already appealed), you cannot appeal the tax debt in a CDP hearing. Instead, you may need to pay under protest and then request a refund. Disputing a tax balance can be very complicated, and to protect your interests, you should work with a tax pro.

You Agree With the Tax Due But Disagree With the Levy

In this case, you can also request a Collection Due Process hearing. LT11 often comes with Form 12153, so simply fill it out and send it to the IRS. Although a hearing sounds intimidating, it's really a straightforward process. When you request a CPD hearing, the IRS contacts you to set up a meeting that usually takes place over the phone. During the call, you explain why you don't want your assets seized. Then, you get to talk about payment plans or other alternatives.

The IRS will not move forward with a levy if you request a CDP hearing. If you don't agree with the results of the hearing, you can appeal to the Tax Court. The IRS will also not seize your assets or take any other unwanted collection actions during the appeal process. 

You Want to Pay the Tax Due and Avoid a Levy

You don't have to request a CDP hearing to avoid the IRS taking your assets. If you prefer, you can pay in full or set up payments. As long as you start the process by the deadline on the LT11, you should avoid any unwanted consequences. You can pay the bill in full through IRS Direct Pay (scan the QR code on the notice to get to the right part of the IRS's website) or you can explore one of the following payment options:

• IRS Online Payment Agreement - If you owe $50,000 or less, you can set up a payment plan online. The process doesn't take long, and you get an instant approval. If applicable, you can make a payment on Direct Pay to get your balance under 50k so that you can set up payments online.
• Installment Agreement - You can apply for an installment agreement using Form 9465 if you owe more than 50k. Don't mail in this form. To ensure the IRS gets the info on time, you need to call them.
• Offer in Compromise - Applying for an offer in compromise before the deadline will also allow you to avoid the levy. If you qualify, the IRS will let you settle for less than you owe, but you generally must prove that you are paying everything that you can afford. The IRS will essentially want all of the quick equity in your assets and your disposable monthly income for the next 12 to 24 months.
• Currently Not Collectible Status - Getting CNC status stops the IRS from seizing your assets or taking any other actions against you. However, to qualify, you need to prove that you don't have any accessible equity in your assets or disposable income. 
• Partial Payment Installment Agreement - With a PPIA, you pay small monthly payments based on your income, and when you get to the collection statute expiration date, the IRS waives the rest of the balance. 

Setting up arrangements with the IRS will allow you to avoid a levy, but again, you must do so before the deadline on the LT11. If you miss the deadline, the IRS can start garnishing your wages, freezing the funds in your bank account, or taking other assets. Once that process is in motion, applying for relief will not necessarily stop it.

You Missed the Deadline and You Don't Want the IRS to Take Your Assets

If you miss the deadline, you risk facing an asset seizure or a wage garnishment. However, you do still have some appeal rights. After the 30-day deadline, you can request an equivalent hearing. You can make your request using the same form as you do for the CDP hearing (Form 12153), just mark that it's an equivalent hearing.

The process will be similar--you'll talk with the IRS on the phone, explain why you don't want the levy, and talk about alternatives. Unfortunately, by the time you make this request, the levy may already be underway. You may not be able to stop the levy right away, but depending on the situation, you may be able to get your levied money or property back. Unfortunately, if you disagree with the results of an equivalent hearing, you do not get to appeal. 

You're Not Sure What to Do

Dealing with the IRS can be stressful and confusing at the best of times, but it's nearly unbearable when they're getting ready to take your assets. If you're not sure what to do, consider using TaxCure to contact a tax professional. You can find and assess experienced tax relief professionals (CPAs, EAs, or Tax Attorneys) in your area that meet the needs of your unique situation. Tax professionals can stop the levy process and help you deal with your taxes owed.

If you cannot afford a tax professional, remember as a Taxpayer you have rights under the Taxpayer Bill of Rights, which includes your right to a fair and just tax system. Therefore, if you cannot afford a tax professional you can contact the Taxpayer Advocate Service (but realize they may not be able to address the situation in time due to limited resources). 

What Happens If You Ignore Letter 11?

As indicated above and on the sample IRS notice provided, if you ignore this letter or refuse to pay, the IRS has the right to seize your assets, file a tax lien, and even revoke your passport if you owe more than $62,000. Under the Fixing America’s Surface Transportation (FAST) Act, the IRS can certify your tax debt to the State Department. Then, the State Department may take your passport if you refuse to pay taxes. If you don’t have a passport, the IRS can prevent you from getting one.

Note that the IRS doesn't have to send you an advance warning before taking your passport or issuing a federal tax lien. Generally, the IRS sends you a notice after it takes these actions. If you're worried about either of these actions, be aware that they are not tied to the deadline on the LT11. If you want to avoid these consequences, contact the IRS as fast as possible to set up payments or make other arrangements for your tax debt.

That said, the IRS does have to give you a 30-day warning before taking your wages or other assets. LT11 meets the IRS's legal requirement to notify you about asset seizure, and if you don't take action, the agency can (and will) move forward with a seizure.

FAQs About LT11 and IRS Tax Levies

How does the IRS send LT11?

The IRS must send LT11 by certified or registered mail to your last known address. Otherwise, they can give it to you in person or leave it at your dwelling or usual place of business. 

The law requires the IRS to ensure that levy notices reach their intended recipients. If the IRS does not deliver this letter correctly, you can use that as legal grounds to stop the levy. In fact, other than paying in full, proving that the IRS did not meet its legal obligation to notify you correctly is one of the most effective ways to stop an in-progress levy.

Is Letter 1058 the same as LT11?

The LT11 (leveraged by ACS) and Letter 1058 (leveraged by Revenue Officers/field) are two different notices that the IRS sends to taxpayers with unpaid bills. However, they both notify you that you have 30 days to pay, set up payments, or request a hearing, and if you don't, the agency can take your assets.

Why should I worry about this letter?

By the time you receive LT11, you have probably received several other notices, and some of them, like the CP504, also say that the IRS is going to seize your assets. The difference between the LT11 and a letter like the CP504 is that the LT11 notes your right to a hearing, and serves as a final notice of intent to levy. 

The IRS must give you a right to a hearing before seizing your assets. The CP504 says that the IRS will seize your assets, but it doesn't notify you of your right to a hearing. If you ignore a CP504, the IRS can seize your state tax refunds, but they won't seize any other assets until they send you another letter like the LT11. That's why you have to respond to LT11 even if you have ignored every other IRS letter.

How do you stop or release a tax levy?

If the IRS has already started to levy your assets there are a variety of ways that the levy can be stopped by arranging a payment plan, filing for an Offer in Compromise, or proving financial hardship (CNC status). Every person has a unique situation and there are a variety of methods that can be used depending on your situation. For more details on stopping a tax levy after it has already started, please refer to this guide on stopping an IRS tax levy.