The IRS LT11 notice is a formal warning that the government intends to levy your assets due to unpaid taxes. This includes the potential seizure of wages, bank accounts, state tax refunds, and business or personal property. LT11 is one of the final notices issued by the IRS before enforced collection begins. It’s often sent by certified or registered mail, giving it legal weight.
What makes LT11 especially important is that it grants taxpayers the right to request a Collection Due Process (CDP) hearing. The IRS Independent Office of Appeals handles this hearing and provides a chance to dispute the debt or propose a resolution. However, this right is only available if you respond within 30 days of the notice date. Failing to act can result in aggressive collection efforts, including a federal tax lien filing or asset seizure.
This article explains what the LT11 notice means and how it fits into the IRS collection process. You'll learn how it differs from similar notices like CP504 and CP90. We’ll also review your available options to settle your tax liability or delay collection through installment agreements or innocent spouse relief programs. If you’re unsure where to begin, a qualified tax professional can help guide you in your next steps.
The IRS LT11 notice, officially titled Final Notice of Intent to Levy and Notice of Your Right to a Hearing, is one of the final warnings sent to taxpayers with unpaid taxes. It notifies the recipient that the IRS intends to collect a delinquent tax debt through a tax levy, including seizing wages, bank accounts, or other personal and business assets. This notice is legally required before the IRS can proceed with enforced collection actions. It also informs taxpayers of their right to request a Collection Due Process (CDP) hearing.
LT11 is issued after previous attempts to collect the debt have failed. Earlier notices, such as CP14 or CP504, alert the taxpayer of the unpaid balance but do not initiate legal levy rights. The LT11 notice, however, is sent by certified or registered mail and includes specific language stating the IRS will seize property unless the balance is paid or resolved. The taxpayer is given 30 days from the notice date to respond.
The LT11 also includes detailed instructions on how to request a CDP hearing using Form 12153. This hearing allows the taxpayer to dispute the debt, request an equivalent hearing, or propose collection alternatives such as a payment plan or Offer in Compromise. Suppose the taxpayer does not act within the 30-day window. In that case, the IRS may proceed with enforced collection, including federal tax lien filing, intercepting state income tax refunds, or garnishing Social Security benefits. Taxpayers are encouraged to respond promptly because of the strict deadline and serious consequences. Consulting a tax professional or attorney may help ensure compliance and protect your rights under the Internal Revenue Code.
The IRS LT11 notice is backed by legal authority under the Internal Revenue Code, primarily Sections 6331(d) and 6330. These sections outline the IRS’s responsibilities before enforcing a tax levy and provide essential protections for taxpayers. Section 6331(d) requires the IRS to give written notice at least 30 days before it seizes property to collect a delinquent tax debt. This notice must explain the IRS’s intent and give taxpayers time to respond or resolve the issue.
Section 6330 adds a critical safeguard: the right to request a Collection Due Process (CDP) hearing. This hearing allows the taxpayer to dispute the tax liability, propose collection alternatives, or raise defenses like innocent spouse relief. It is conducted by the IRS Independent Office of Appeals, separate from the IRS’s collections division. This ensures that a neutral third party reviews the enforcement action.
The LT11 notice is sent via certified or registered mail and must include details about your appeal rights and instructions for submitting Form 12153. If the IRS does not receive your hearing request within 30 days, it may move forward with enforced collection, such as a federal tax lien filing or levying business assets or bank accounts. Because this notice carries full legal weight, failing to act promptly can lead to serious consequences. Understanding your rights and responding quickly—preferably with help from a tax professional—can prevent unnecessary financial hardship and preserve your ability to challenge the IRS’s actions.
The IRS issues several notices before taking enforcement actions on unpaid taxes, each with its own purpose and legal authority. Among the most common are CP504, CP90, and LT11. While all three relate to unresolved tax liabilities, they represent different stages in the IRS collection process. Understanding the distinctions between them helps taxpayers avoid escalation and take appropriate action.
The CP504 notice is typically sent earlier in the process and serves as a final reminder before formal levy actions are initiated. It warns the taxpayer that the IRS may levy certain assets, most often a state tax refund, to cover the unpaid balance. However, CP504 does not grant the legal right to request a Collection Due Process (CDP) hearing, which limits a taxpayer’s ability to appeal formally. This notice is often a precursor to more serious actions, such as issuing LT11 or CP90.
Key facts about CP504:
The CP90 notice is a legally enforceable warning and offers full CDP hearing rights. It is typically sent to individual taxpayers and outlines the IRS’s intent to levy wages, bank accounts, or other assets. The notice includes instructions for submitting Form 12153 within 30 days to preserve appeal rights. It is one of the final steps before the IRS begins enforcing collection actions.
Key facts about CP90:
The LT11 notice provides the same legal protections and deadlines as CP90. It is used for individuals and businesses and must be addressed within 30 days. It clearly outlines how to submit Form 12153 and warns of serious consequences if ignored. Taxpayers who act quickly can propose collection alternatives, such as a payment plan or an Offer in Compromise, to avoid enforcement.
Key facts about LT11:
Receiving an IRS LT11 notice means the IRS is preparing to collect your delinquent tax debt by levying your assets. This could include your wages, bank accounts, business property, or other personal assets. The notice serves as a final warning, not just a reminder. Ignoring it can lead to serious consequences, such as federal tax lien filing, state refund interception, or wage garnishment.
The fastest way to stop enforcement is to pay your full balance. When you pay the entire amount listed on the notice, the IRS will close your case, and additional penalties or interest will stop accumulating. You can pay online through the IRS payment portal, by check or money order, or through electronic payment by phone. Full payment also prevents future levies and lien filings, eliminating the risk of losing bank funds or other assets.
If full payment is impossible, you can protect your rights by requesting a Collection Due Process (CDP) hearing. This is done by submitting Form 12153 to the IRS address listed on your notice within 30 days. A timely request allows you to dispute the debt, propose a collection alternative, or assert defenses such as innocent spouse relief. Submitting the form on time also temporarily halts levy action while reviewing your case.
You may also contact the IRS directly to explore available resolution programs. Depending on your financial situation, you could qualify for a payment plan, Offer in Compromise, or Currently Not Collectible status. Each option offers a way to manage your debt without immediate enforcement. For guidance, consider working with a licensed tax professional or tax attorney to protect your rights and respond appropriately.
When you receive an IRS LT11 notice, several ways exist to address your unpaid taxes and avoid enforced collection. Your response should be based on your financial situation and ability to pay. The IRS offers multiple resolution programs, each with specific eligibility criteria. Acting quickly, especially within the 30-day response window, can preserve your rights and prevent serious financial consequences.
Paying your full balance is the most direct and effective way to resolve the issue.
You can request a Collection Due Process (CDP) hearing by submitting Form 12153 within 30 days of the LT11 notice date.
An Installment Agreement allows you to make monthly payments toward your tax debt over time.
If you cannot pay your tax debt in full, you may qualify to settle for less through an Offer in Compromise.
Taxpayers experiencing financial hardship may request Currently Not Collectible status if they cannot pay even over time.
If penalties significantly increase your tax bill, the IRS may grant penalty relief under certain conditions.
Bankruptcy may provide protection or partial relief for certain tax liabilities, but strict rules apply.
Collection Due Process Hearings Explained
A Collection Due Process (CDP) hearing is a legal right granted to taxpayers who receive an IRS LT11 notice. Under Internal Revenue Code Section 6330, the IRS must allow you to appeal before it levies your assets, such as bank accounts, wages, or business property. The IRS Independent Office of Appeals conducts the hearing, which is separate from the collections division. This process helps ensure that levy actions are fair and legally justified.
To request a CDP hearing, you must complete and mail Form 12153 within 30 days of the date on your LT11 notice. The form asks for basic information about your tax period, reason for disagreement, and any proposed alternatives to collection. Timely submission of the form preserves your right to further appeal through the U.S. Tax Court if you disagree with the Appeals decision. The IRS generally requires that you send the hearing request to the address listed on your levy notice, using certified or registered mail for proof of delivery.
During the CDP hearing, you can present arguments against the levy, propose a payment plan, request innocent spouse relief, or dispute the tax liability. Depending on your circumstances, the hearing may be conducted by phone, in writing, or in person. While your hearing is pending, the IRS may not proceed with enforced collection, including levies or federal tax lien filings.
After reviewing your case, the settlement officer from Appeals will issue a Notice of Determination outlining the outcome. If you disagree with the determination, you have 30 days to petition the tax court. Requesting a CDP hearing is one of the most effective ways to protect your rights, gain time, and pursue a fair resolution with the IRS.
What Happens If You Ignore the LT11 Notice?
Failing to respond to an IRS LT11 notice within the 30-day window can lead to immediate and severe financial consequences. The notice serves as the IRS’s final warning before it begins enforcing the collection of your delinquent tax debt. If you do nothing, the IRS is legally authorized to seize your assets, intercept refunds, and file a federal tax lien. These actions can significantly affect your finances, credit, and legal standing.
When the 30-day deadline passes without a response, the IRS may proceed with a tax levy. This allows the agency to seize bank accounts, wages, business property, personal assets, and other current assets. The levy may include garnishment of income or liquidation of valuable property. These actions continue until your tax liability is resolved or the debt becomes legally uncollectible.
In addition to levying assets, the IRS may file a Notice of Federal Tax Lien. This public notice informs creditors of the government’s legal claim against your property. A lien can damage your credit, make it difficult to secure financing, and complicate the sale or transfer of real estate. The IRS is not required to notify you before filing a lien if other notices have already been sent.
If your seriously delinquent tax debt exceeds the federal threshold (currently $62,000), the IRS may notify the State Department under the Fixing America’s Surface Transportation (FAST) Act. This certification may result in your passport being denied, revoked, or limited. These restrictions remain in place until your balance is resolved or a satisfactory arrangement is made. Ignoring the LT11 notice risks triggering all of these enforcement mechanisms.
The LT11 is a final IRS notice that includes your right to a Collection Due Process (CDP) hearing, unlike CP504, which does not. CP504 is earlier in the process and warns of levies on state tax refunds or Alaska Permanent Fund Dividends. LT11 allows appeals through the IRS Independent Office of Appeals. If ignored, LT11 may lead to enforced collection actions and a federal tax lien after the collection statute expiration date is considered.
The IRS offers several payment arrangements if you cannot pay your full tax liability. These include Installment Agreements, Offer in Compromise, or Currently Not Collectible status. You may discuss these with the IRS or your tax professional to avoid asset seizure. Submitting Form 12153 may help delay enforcement and allow time to apply for relief. Responding to your LT11 notice quickly is essential to qualify for these resolution options.
You may still request an equivalent hearing through the equivalent hearing process by submitting Form 12153 after the 30-day deadline. While this option does not preserve your right to petition the tax court, it lets the IRS office review your case. You may still propose collection alternatives or raise defenses. An equivalent hearing can prevent enforcement, especially for those with overdue taxes and limited payment ability.
When filing Form 12153, include your details, the applicable tax form number, and the period involved. Clearly state your disagreement with the proposed levy and request a CDP or equivalent hearing. Mail the completed form to the IRS address on your LT11 notice, preferably using certified or registered mail. This submission ensures your case is reviewed before any IRS office initiates collection actions like levies or liens.
If you ignore your LT11 notice, the IRS may levy bank accounts, wages, real property, Alaska Permanent Fund Dividends, and other personal assets. They may also issue a disqualified employment tax levy for certain unpaid business payroll taxes. These actions continue until the tax debt is resolved or the collection statute expiration date passes. Timely response helps prevent these seizures and allows you to propose alternative resolutions.
Under the Act, legislation like the Fixing America’s Surface Transportation (FAST) Act, the IRS may notify the State Department if you owe seriously delinquent tax debt. This certification generally prohibits the issuance or renewal of your passport. If you receive such a notification, resolving your debt or entering a payment arrangement may remove the restriction. This action often follows ignored notices like LT11 and indicates an urgent need for resolution.
To avoid enforced collection, act within 30 days of the LT11 notice. Submit Form 12153 for a CDP hearing, apply for a payment arrangement, or pay in full. Contacting the IRS office directly or working with a tax professional can help you evaluate your best options. The LT11 is a final notice, and ignoring it may lead to levies, liens, or seizure of assets—even before the collection statute expires.
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