LT11 Notice: Your Right to a Hearing Before IRS Levy
If you've received an LT11 notice from the IRS, you're facing a critical moment in the tax collection process. This letter, also called a "Final Notice of Intent to Levy," means the IRS is planning to take serious collection action against your property or assets. But here's the good news: the LT11 notice also gives you important rights to challenge this action before it happens.
Let's break down exactly what this notice means, your options for responding, and the steps you need to take right now to protect your rights and resolve your tax situation.
What This Notice Means
The LT11 notice is the IRS's official warning that they intend to levy (seize) your property to satisfy an unpaid tax debt. This is one of the most serious notices in the IRS collection process. However, it also grants you the right to request a Collection Due Process (CDP) hearing where you can challenge the levy or propose alternative payment arrangements.
Why You Got This Notice
The IRS sends an LT11 notice when previous attempts to collect your tax debt have been unsuccessful. There are several specific reasons you might receive this notice:
The LT11 is never the first notice you receive about a tax debt. It follows a sequence of less severe notices that escalate in seriousness.
What the IRS Is Asking For
The LT11 notice is direct about what the IRS wants from you:
The notice will include Form 12153 (Request for a Collection Due Process Hearing) that you can use to request a hearing with the IRS Independent Office of Appeals.
If your tax debt is substantial (typically over $50,000), the notice might also mention that the IRS can revoke your passport by certifying your debt to the State Department under Internal Revenue Code Section 7345.
Your Response Options
When you receive an LT11 notice, you have several options, each with different timelines and consequences:
Remember that the 30-day deadline for requesting a CDP hearing is strict. Missing this deadline significantly reduces your options and rights.
How to Respond to an LT11: Step by Step
Here's a detailed guide on how to respond to your LT11 notice properly:
Step 1: Review the Notice Carefully
Verify all information on the notice is correct, including:
If you find any errors, document them to discuss during your CDP hearing or when you call the IRS.
Step 2: Gather Your Financial Information
Before taking action, collect:
This information will help you determine which response option is best for your situation.
Step 3: Decide on Your Response Approach
Based on your financial situation, choose from the options mentioned above. If you're unsure, consider checking your status or consulting with a tax professional who specializes in IRS collection matters.
Step 4: Request a CDP Hearing (If Appropriate)
If you disagree with the levy or need time to arrange payment:
The IRS Independent Office of Appeals must receive your request within 30 days of the date on the LT11 notice.
Step 5: Prepare for Your CDP Hearing
If you've requested a hearing:
The CDP hearing is typically conducted by phone, though you can request a face-to-face meeting in some circumstances.
What Happens at a CDP Hearing
During your Collection Due Process hearing, you'll meet with a Settlement Officer from the IRS Independent Office of Appeals. This officer has not previously been involved in your case, providing a fresh perspective.
At the hearing, you can:
The Settlement Officer will consider whether the proposed levy balances efficient tax collection with your concern that the collection action be no more intrusive than necessary.
After your hearing, the officer will issue a determination with their decision. If you disagree with this determination, you have the right to challenge it in Tax Court within 30 days.
What Happens If You Ignore This Notice
Ignoring an LT11 notice has severe consequences. If you don't respond within 30 days, here's what happens:
The consequences of what happens if you ignore this notice can be financially devastating and take years to resolve.
How to Prevent This in the Future
To avoid receiving LT11 notices in the future:
Frequently Asked Questions About the LT11 Notice
How long do I have to respond to an LT11 notice?
You have exactly 30 days from the date on the notice (not the date you received it) to request a Collection Due Process hearing by filing Form 12153. Missing this deadline means you'll only qualify for an Equivalency Hearing, which provides fewer protections.
Can the IRS levy my assets while my CDP hearing request is pending?
No. Once you timely request a CDP hearing, the IRS must suspend levy actions while your case is being considered by Appeals. This is called a "collection hold" or "levy suspension" and is one of the key protections the CDP process provides.
What types of property can the IRS levy?
The IRS can levy almost any type of property, including:
However, certain property is exempt from levy under Internal Revenue Code Section 6334.
What happens after I request a CDP hearing?
After receiving your request, the IRS will transfer your case to the Independent Office of Appeals. You'll be assigned a Settlement Officer who will contact you to schedule the hearing. This typically happens within 60-90 days of your request, though it can take longer in complex cases.
Can I still set up a payment plan after receiving an LT11?
Yes. Even after receiving an LT11 notice, you can still request an installment agreement. You can do this by calling the number on your notice, applying online through the IRS Online Payment Agreement tool, or by submitting Form 9465.
What if I can't afford to pay anything right now?
If you're experiencing financial hardship, you can request Currently Not Collectible (CNC) status by completing Form 433-F and providing proof of your financial situation. The IRS may temporarily pause collection activities if they determine that collecting would create significant hardship.
Can I dispute the tax amount on the LT11 notice?
You can challenge the underlying tax liability during your CDP hearing, but only if you didn't receive a statutory notice of deficiency or didn't otherwise have an opportunity to dispute the amount. If you previously had a chance to challenge the amount and didn't, you typically can't dispute it during the CDP process.
What if I already have a payment plan with the IRS?
If you received an LT11 notice despite having a payment plan, it likely means your plan defaulted, perhaps due to missed payments or filing requirements. Contact the IRS immediately using the number on the notice to discuss reinstating your agreement.
What to Do Right Now
If you have an LT11 notice in hand, here are the immediate actions you should take:
Remember, the LT11 notice is serious, but it also provides important rights and protections. By taking prompt action, you can avoid levies and find a workable resolution to your tax debt.
For more information on how to handle IRS notices or to get your compliance report, visit Proof.tax for personalized guidance on your tax situation.
excerpt: The LT11 notice warns of impending IRS levies but grants your right to request a Collection Due Process hearing within 30 days to challenge the action or arrange payment. read_time: 12 minutes meta_title: LT11 Notice: Understanding Your CDP Hearing Rights Before IRS Levy meta_description: Received an LT11 notice? Learn how to respond within 30 days, request a CDP hearing, and protect your assets from IRS levies. Get step-by-step guidance here.