The bottom line with an IRS LT11 notice is this: if you wish to have an opportunity to ask for a Collection Due Process hearing you typically have 30 days in which to submit a request in the form of IRS Form 12153. It’s a big deadline, important deadline because it isn’t just a reminder, it’s an important reminder. This is the Final Notice of Intent to Levy, and Notice of Your Right to a Hearing. It is the IRS’s way of letting you know that if you don’t they will be putting a lien on your wages, bank account or other property.
How to Respond to IRS LT11 Notice (Step-by-Step Guide)
1. Read the Notice Date and Deadline
Start by checking the top section of your LT11 notice. Look for:
- Notice date
- Tax year or years involved
- Amount due
- Response deadline
- IRS address for hearing requests
- IRS phone number
- Payment instructions
- Appeal rights language
2. Confirm the Tax Debt
Before responding, confirm whether the IRS balance is correct. Check:
- IRS account transcript
- Filed tax returns
- Prior payments
- Estimated tax payments
- Refund offsets
- Penalty and interest charges
- Possible IRS posting errors
In cases of refunds, offsets and missing credits, information about IRS Tax Refunds might also be required.
3. Choose Your Response Option
Your response depends on your situation. Common options include:
- Pay the full amount
- Request a Collection Due Process hearing
- File Form 12153
- Request an installment agreement
- Submit an Offer in Compromise
- Request Currently Not Collectible status
- Dispute the tax balance
- Ask for penalty abatement
- Correct missing or unfiled tax returns
4. File Form 12153 Before the Deadline
A Collection Due Process / Equivalent Hearing is requested on Form 12153. IRS Form 12153 instructions state that they should be mailed to the address on the CDP notice to request a hearing (not the address on the CDP notice to pay), and that they should also include a copy of the CDP notice.
- Complete taxpayer information carefully
- List the tax years involved
- Check the correct box for levy notice
- Explain why you disagree or what resolution you want
- Include your proposed solution
- Attach helpful documents
- Sign and date the form
- Mail it to the correct address
- Use certified mail or another trackable method
- Keep a full copy for your records
5. Prepare for the IRS Appeals Office
Once you have requested a CDP hearing, the case could be appealed to the IRS Independent Office of Appeals. Be prepared to describe:
- Why the levy is inappropriate
- Whether the tax balance is correct
- Whether you can pay
- Whether you need a payment plan
- Whether you qualify for hardship relief
- Whether you have unfiled returns
- Whether penalties should be reduced
- What collection alternative you propose
What Is the IRS LT11 Response Deadline?
The IRS response time for LT11 is usually within 30 days of the date of the notice or date the notice is received (as stated on your notice) according to IRS instructions. You can appeal, during this time, to the IRS Independent Office of Appeals, by filing a Form 12153, for a Collection Due Process hearing.
You may be able to help yourself:
- To allow the IRS some time to catch its breath before they can levy your debts.
- Avoid having the IRS take you for a ride!
Avoid wage garnishment
Have IRS Appeals consider,
LT11 has set up a repayment plan
Provide a challenge to an erroneous tax assessment
Avoid IRS tax debt problems from escalating worse.
What Is an IRS LT11 Notice?
IRS LT11 notice is a crucial IRS collection notice. It notifies you that the IRS will seize the property or rights to the property if you don’t pay, appeal, or make a reasonable settlement with the IRS.
LT11 Notice Meaning in Simple Terms
The reasoning behind the receipt of the letters under the LT11 notice is quite straightforward: The IRS is contemplating some action. This may include garnishment of wages and/or banking levy or whatever collection needs to be made.
The LT11 is usually issued after all of the other tax debt notices. If notices are not realistic/ enforceable, and the IRS will not be as inclined to enforce if those notices are not being followed.
Is LT11 the Same as Letter 1058?
IRS LT11 letter is similar to IRS Letter 11.IRS LT11 letter is similar to Letter 1058 IRS. They are both final levy notices which will alert the taxpayer to the IRS’s intention to levy, and the taxpayer’s right to request a hearing.
In reality, there may be LT11, Letter 1058 or other similar terminology, like Final Notice of Intent to Levy. The IRS is conveying the message via the notice type, which can vary based on the method of IRS collection action, but the message is the same: If you don’t do something, IRS collection action may ensue.
Why This Notice Is More Serious Than a Regular IRS Bill
- IRS tax levy notice
- IRS collection notice
- IRS enforcement action
- Notice of your right to a hearing
- Federal tax levy rules
- IRS administrative appeal rights
What Happens After You Receive an IRS LT11 Notice?
If you are notified of an LT11 notice, don’t delay! The IRS is proffering you a short time to respond before it might take additional collection action.
The IRS Gives You Time to Act
In most cases, the IRS will provide you with 30 days to make a request for a CDP hearing after the receipt of an LT11 or Letter 1058. This is the most important deadline! You want to check the notice, verify the balance and determine if you want to submit Form 12153 during this time.
The reason 12153 is important is because if you make a request promptly, it could be more effective in defending your rights than if you were to do so later.
What the IRS Can Do If You Do Nothing
If you ignore the LT11 notice, the IRS may move forward with collection. Depending on your case, this may include:
- Bank account levy
- Wage garnishment
- Levy on certain income sources
- Seizure of certain property
- Continued penalties and interest
- Loss of full CDP hearing rights
- Loss of possible Tax Court review rights
What You Should Not Do
Don’t dismiss the notice! Never take chances on what the IRS will do. Please do not call the IRS until you have read and reviewed the tax year, amount due, notice and deadline information.
Some typical bad moves are:
- Ignoring the LT11 notice
- Waiting until the last day
- Sending Form 12153 to the wrong address
- Calling without documents
- Assuming a payment plan is automatic
- Thinking the IRS cannot levy wages or bank accounts
- Failing to keep proof of mailing
Documents You May Need to Respond to LT11
A pertinent answer is backed up with documents. Specific documents vary depending on whether they are contesting the balance, asking for a payment plan or for financial hardship.
Basic Documents
You may need:
- Copy of the LT11 notice
- Copy of Letter 1058, if applicable
- Tax returns for the years listed
- IRS account transcripts
- Proof of payments
- Prior IRS letters
- Proof of mailing
- Any previous appeal or agreement documents
Financial Documents
If you cannot pay in full, prepare financial records such as:
- Bank statements
- Pay stubs
- Profit and loss statement
- Business income records
- Monthly expense details
- Mortgage or rent proof
- Utility bills
- Medical bills
- Child support proof
- Dependent care expenses
- Loan statements
Self-employed taxpayers should be extra careful. A freelancer may need income records, 1099 forms, business expenses, and bank statements. A resource like Tax Advisors for Freelancer can be useful for taxpayers who need help organizing income and expense records before dealing with the IRS.
Tax Resolution Documents
Depending on your case, you may also need:
- Form 12153
- Form 433-A or Form 433-F
- Installment agreement request
- Offer in Compromise documents
- Penalty abatement statement
- Proof of financial hardship
- Missing tax returns
- Business financial reports
What If You Missed the LT11 Deadline?
Don’t give up if you missed the deadline to take the LT11. There might be choices available, but your rights might be more restricted.
Can You Still Appeal After Missing the Deadline?
In some cases, it may still be possible to make a CDP request, despite the deadline. If the IRS does not respond in a timely fashion (within a year of the notice date), then the taxpayer may request an Equivalent Hearing, and if the taxpayer disagrees with Appeals’ decision, then the taxpayer can appeal to court. A taxpayer may request an Equivalent Hearing from the Internal Revenue Service (IRS) within one year of the notice, but may not appeal to court if he or she doesn’t agree with the Appeals decision.
What Is an Equivalent Hearing?
Some aspects of an Equivalent Hearing are the same as a CDP hearing because it is possible that an IRS Appeals will hear your case. But it is not as binding as a timely CDP hearing.
Please make sure that a CDP request is made in a timely fashion to ensure judicial review rights are preserved. It is NOT a typical Equivalent Hearing. The Taxpayer Advocate Service will understand that an Equivalent Hearing is filed within one year of the CDP notice date, but if you disagree with the Appeals determination then you will not be able to present the case to Tax Court.
What to Do If the IRS Already Levied Your Bank Account or Wages
If the IRS already levied your bank account or started wage garnishment, act immediately.
You may need to:
- Call the IRS number on the notice
- Request a levy release
- Explain financial hardship
- Provide bank statements and expense proof
- Ask about an installment agreement
- Ask about Currently Not Collectible status
- Contact a tax professional quickly
Can Filing Form 12153 Stop an IRS Levy?
Appeals hearing may be able to stop levies on time, if a CDP request is made in time. This is certainly one of the primary reasons that taxpayers shouldn’t wait.
How a Timely CDP Request Can Pause Levy Action
When you file Form 12153 on time, you are formally asking for Appeals review. This may stop certain levy actions while the CDP hearing is pending.
This can give you time to:
- Review the balance
- Propose a payment plan
- Request penalty relief
- Submit financial documents
- Dispute the tax debt
- Negotiate a collection alternative
When Levy Action May Still Happen
There are exceptions. Levy action may still happen in certain situations, such as:
- Jeopardy collection cases
- Certain state refund levy situations
- Cases where the deadline was missed
- Cases involving other enforcement exceptions
- Cases where no valid appeal request was filed
Why Proof of Mailing Matters
Proof of mailing can protect you if the IRS later says your Form 12153 was late or not received.
Use:
- Certified mail
- Tracking number
- Postal receipt
- Copy of signed Form 12153
- Copy of LT11 notice
- Fax confirmation, if the IRS allows faxing
Do not rely on memory. Keep records.
IRS Payment Options After LT11
The IRS lets you pay its debt over a period of time with an installment agreement. This could benefit you if you have a debt but can’t pay it off in full.
Installment Agreement After LT11
If you receive a notice of tax Levy, you can offer in Compromise.
An Offer in Compromise might be an option for some taxpayers to resolve tax debt for less than the total amount. This does NOT happen automatically. The IRS takes income, assets, expenses and capacity to pay into account.
Currently Not Collectible Status
Making the payment to the IRS may cause serious financial hardship, and may be a status of Currently Not Collectible. It will not cancel the tax debt, but it could put a moratorium on action.
Penalty Abatement Possibility
If you qualify, some penalties could be lowered by the use of penalty abatement. This could be for “reasonable cause,” serious illness, natural disaster, incorrect advice, or the first time penalty.
Fees, Charges, Penalties, and Expected Costs
Failure to act early with respect to LT11 could be more costly than taking action early in the process.
IRS Penalties and Interest
Penalties and interest could continue to accrue if the tax balance does not get paid. This can make it more difficult to resolve the debt after.
Some of the collective expenses include:
- Failure-to-pay penalties
- Interest on unpaid tax
- Installment agreement setup fees
- Returned payment charges
- Professional representation fees
IRS Payment Plan Fees
The fees associated with IRS payment plans may differ depending on the payment plan, how it is derived and if direct debit is utilized. In certain situations, lower income tax filers may be exempt from paying fees.
Professional Help Costs
The cost of hiring a tax professional depends on:
- Number of tax years involved
- Amount owed
- Whether returns are missing
- Whether Appeals representation is needed
- Whether a levy release is urgent
- Whether business tax issues are involved
- Whether financial forms are required
Common LT11 Mistakes to Avoid
Far too many taxpayers exacerbate the problem by delaying or responding incorrectly.
1. Thinking LT11 Is Just Another Reminder
LT11 is no ordinary bill. This is a final warning of a levy. Treat it as urgent.
2. Missing the 30-Day Deadline
This is the worst thing to do. Failure to meet the deadline can diminish the chances of being able to appeal the case and can give the IRS the ability to keep enforcing.
3. Sending Form 12153 to the Wrong Address
If a notice does not indicate that the hearing request address is Form 12153, do not mail a Form 12153 to the payment address. IRS Form 12153 instructions require that you mail it to the address where you can request a hearing, as listed on the CDP notice.
4. Requesting a Hearing Without a Plan
A CDP hearing is not intended to be a “delay” device. Actually, there should be a concrete plan like an installment agreement, Offer in Compromise, hardship request, etc.
5. Ignoring Unfiled Tax Returns
Many options are available to resolve unfiled returns, but the IRS may only approve some until you come in compliance.
Common LT11 Problems and Solutions
1. IRS Says the Deadline Expired
Solution: Review the notice date, mailing history and proof of delivery. If the deadline for the CDP has passed, request if an Equivalent Hearing is still available.
2. IRS Already Levied Your Bank Account
Action: Ask for a levy release if it is a hardship. Have bank statements, bills and supporting documentation of how living expenses are to be covered.
3. You Cannot Pay the Full Balance
Solution: Request an installment agreement, offer in compromise or Currently Not Collectible status.
4. The Tax Balance Is Wrong
Solution: Collect tax returns, IRS transcripts, payment records, and records of offset of a tax refund. Next argue the balance, backed by evidence.
5. You Received LT11 but Never Got Earlier Notices
Solution: Check your IRS solution history and also address documents. Notices are typically sent to the last address of the IRS’ records. Be sure to let the IRS know if your address has changed.
Official IRS Guidance and Contact Options
Be guided by IRS guidance where possible. Avoid just anything that’s been posted on social media or given in the forums.
Where to Send Form 12153
Please mail Form 12153 to the address on your LT11 or CDP notice. Attach a copy of the notice, allowing the IRS to properly process your request.
Where to Call
Call the phone number on your LT11 notice. If you have any questions about the correct address or fax number to use on Form 12153, the instructions to the IRS form state you can call the phone number listed on the CDP notice or 1-800-829-1040.
IRS Online Account
Your IRS online account may help you check:
- Tax balance
- Payment history
- Notices
- Tax records
- Payment options
- Some transcript information
Key IRS Resources
Important IRS resources include:
- Form 12153
- Publication 594
- Publication 1660
- IRS Independent Office of Appeals
- Taxpayer Advocate Service
- IRS online account
When Should You Contact a Tax Lawyer?
While not all cases of LT11 need a lawyer, in cases where the deadline is near, or collection has begun, having a professional could be crucial.
You May Need Professional Help If:
- The LT11 deadline is close
- Your bank account is at risk
- Your wages may be garnished
- The IRS already levied your account
- You owe a large balance
- Multiple years are involved
- You have unfiled returns
- You disagree with the tax debt
- You need IRS Appeals representation
- You own a business
- You are self-employed
What a Tax Lawyer or Tax Resolution Professional Can Do
A tax professional may help you:
- Review the LT11 notice
- Confirm the deadline
- File Form 12153
- Request a CDP hearing
- Communicate with IRS Appeals
- Negotiate payment terms
- Request levy release
- Prepare financial forms
- Build a compliance plan
- Protect taxpayer rights after LT11
Real-Life LT11 Situations
Example 1: Taxpayer Responds Within 30 Days
Maria’s unpaid tax balance is sent to her in the form of an LT11 notice. She sees that the notice date has passed and files Form 12153, and applies for a CDP hearing. She has filed her action in advance of the deadline, which could mean that she is able to maintain better appeal rights during Appeal’s review.
Example 2: Taxpayer Misses the Deadline
David waits 45 days after receiving LT11. May no longer be eligible for timely CDP hearing. If he is still within the time limit, he will still be allowed to request an Equivalent Hearing. He’ll need to take immediate action as IRS levy action could still proceed.
Example 3: Taxpayer Cannot Pay in Full
A tax-payer has a debt of $18,000 which he cannot settle right now. They don’t accept LT11, but ask for an LT11 hearing and offer an installment agreement. This allows them to have a clear method to settle the balance.
Example 4: Taxpayer Believes the IRS Balance Is Wrong
A taxpayer is issued with LT11, but has evidence showing that the taxpayer did not pay earlier. They collect bank statements, IRS statements and payment verification. Thereafter, they dispute the balance using the hearing request.
Legal References Behind LT11
The main legal references behind LT11 include:
- IRC § 6331: IRS levy authority and notice requirement
- IRC § 6330: Collection Due Process hearing rights
- Form 12153: Request for Collection Due Process or Equivalent Hearing
- IRS Publication 594: The IRS Collection Process
- IRS Publication 1660: Collection Appeal Rights
- Tax Court review rights after a timely CDP determination
FAQs About IRS LT11 Response Deadline
How long do I have to respond to an IRS LT11 notice?
Be sure to look at the actual due date on the notice.
What is Form 12153 used for?
A request for a Collection Due Process hearing or an Equivalent Hearing with IRS Appeals is made on Form 12153.
What happens if I miss the LT11 deadline?
It is still possible to obtain an Equivalent Hearing within the time period.
Can the IRS levy my bank account after LT11?
Yes.
Does filing Form 12153 stop IRS levy action?
Your case may be placed on hold for some of the levy actions while the Appeals process is pending, if you submit a Form 12153 request in time.
Can I set up a payment plan after receiving LT11?
Yes. There are many taxpayers that can enter into an installment agreement after receiving LT11, however, they may have to be up to date on filing requirements.
Do I need a tax lawyer for an LT11 notice?
Not always. However, the tax lawyer or tax professional can be helpful if the deadline is soon, the amount of the balance is substantial, or the IRS has initiated levy action.
Is LT11 the same as Letter 1058?
These are very similar to the last notices issued. Both advise of the possibility of a tax lien by the IRS and both address the right to a hearing.
Conclusion
One of the deadlines in the IRS collection process is the IRS LT11 response. It’s best to move quickly, carefully read the notice, collect documents and select a clear resolution path. If you need a payment plan, hardship assistance, penalty relief or help preventing a levy against your wages or bank account, don’t wait for the IRS to take your wages or bank account!
