IRS LT11 Notice – Intent to Levy & Right to Hearing

Receiving an IRS LT11 Notice can be overwhelming, especially if you are unsure what it means. This letter is often the final notice before the IRS begins collection actions for unpaid taxes. It signals that your case has reached a serious point in the IRS collection process.

The notice warns that the IRS may proceed with levying wages, bank accounts, or even Social Security benefits. Additionally, the IRS may file a federal tax lien, turning it into a public record and establishing a legal claim against your property. This can also raise the risk of losing state tax refunds or other assets for many taxpayers.

While the consequences are significant, you still have rights and options. The LT11 explains your right to a Collection Due Process hearing, which can stop collection activity while reviewing your case. Acting quickly—through payment arrangements, appeals, or professional guidance—can help prevent further financial hardship.

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What Is the IRS LT11 Notice?

The IRS LT11 Notice, or a final notice, is a letter sent to taxpayers with unpaid taxes. It warns that the IRS intends to levy wages, bank accounts, or property if the debt is unresolved. The letter also explains your right to request a Collection Due Process hearing, which allows you to dispute the debt or set up payment arrangements before collection begins.

This notice is different from earlier reminders such as CP14 or CP501. By the time the LT11 arrives, the IRS has already sent several notices about your balance. It is one of the last steps in the IRS collection process before taking more decisive actions, like seizing assets or filing a federal tax lien.

The LT11 Notice is vital because it shows the IRS's plans and your rights. Acting quickly after receiving the notice can help you avoid garnishments, levies, and further financial stress.

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What Is the IRS LT11 Notice?

The IRS LT11 Notice, sometimes called a final notice, is a formal warning that the IRS intends to begin collection actions if overdue taxes are unresolved. It also informs you of your right to request a Collection Due Process hearing, which can temporarily stop collection activity while your case is reviewed.

Key Points About the LT11 Notice

• Purpose: The LT11 explains that the IRS plans to levy wages, bank accounts, Social Security benefits, or other property if the debt is not addressed.
  
  
• Final stage: This notice is sent only after the IRS mailed several earlier notices without receiving a response.
  
  
• Legal requirement: The LT11 is issued under the Internal Revenue Code to provide taxpayers both a warning and an opportunity to appeal.
  
  
• Serious consequences: Ignoring this notice may lead to a federal tax lien, which becomes a public record and creates a legal claim against your property.

How It Differs From Other Notices

• CP14 or CP501: These earlier reminders alert taxpayers about unpaid taxes and request prompt payment.
  
  
• CP504: The CP504 notice is a stronger warning that explains that the IRS may intercept state tax refunds if the balance remains unresolved.
  
  
• LT11: This is the final step before the IRS moves forward with wage garnishments, bank levies, or property seizures.

Understanding this notice matters because it shows that your account has reached a critical point. Taking action quickly helps preserve your rights and prevents more aggressive collection measures.

Why the IRS Sends an LT11 Notice

The IRS issues an LT11 Notice when a taxpayer has not resolved outstanding tax balances despite earlier reminders. By the time this letter arrives, the IRS has made multiple attempts to collect payment or receive a response. The LT11 represents the agency’s intent to take more decisive action under the Internal Revenue Code.

Common Reasons for Receiving an LT11 Notice

1. Unpaid taxes: The notice is sent when a taxpayer has one or more unpaid balances after earlier bills and reminders.
   
   
2. Seriously delinquent tax debt: The IRS may classify the balance as seriously delinquent, which can also trigger passport restrictions through the State Department.
   
   
3. Ignored notices: The LT11 follows several previous letters that were not acted upon, including CP14, CP501, and CP504.
   
   
4. Legal requirements: The Internal Revenue Code requires the IRS to provide a final written warning before levy actions begin, and the LT11 fulfills that requirement.

Understanding why the IRS sends this notice is important because it confirms that your account is in danger of enforced collection. Taking action at this stage can prevent the IRS from seizing wages, bank accounts, or other assets.

Consequences of Ignoring the LT11 Notice

Failing to respond to an LT11 Notice gives the IRS the authority to move forward with collection actions. These measures can affect your income, property, and financial security. Ignoring the letter does not make the debt disappear; instead, it increases the risk of more severe enforcement.

What Can Happen If You Do Not Respond

• Wage garnishment: The IRS can contact your employer and require that a portion of your wages be withheld until the balance is paid.
  
  
• Bank account levy: The IRS can freeze and remove funds from your bank accounts to cover unpaid taxes.
  
  
• Social Security benefits: The IRS can withhold a significant portion of your monthly Social Security payments.
  
  
• Personal property and business assets: The IRS can seize vehicles, equipment, or other property to satisfy the debt.
  
  
• State tax refunds: The IRS can intercept state tax refunds, including the Alaska Permanent Fund Dividend, and apply them to your balance.
  
  
• Federal tax lien: The IRS can file a lien that becomes a public record and establishes a legal claim against your property.
  
  
• Open bankruptcy proceeding: The IRS must pause levy actions if you are in bankruptcy, but the debt will remain and may be pursued once the case is closed.

Why Immediate Action Matters

The longer you wait, the fewer options you may have to resolve the debt on favorable terms. Responding quickly protects your rights and improves your chances of setting up manageable payment arrangements or other relief.

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Your Rights: Collection Due Process Hearing

When the IRS sends an LT11 Notice, it must also explain your right to request a Collection Due Process hearing. This hearing is one of taxpayers' most essential protections during the IRS collection process. It allows you to review the tax debt, propose payment options, or challenge the IRS before collection actions begin.

How the Hearing Works

• Timeframe to act: You have 30 days from the date the IRS sends the notice by certified mail or registered mail to request a hearing.
  
  
• Independent review: The IRS Independent Office of Appeals handles the hearing, which reviews your situation separately from the collection staff.
  
  
• What you can present: You may provide financial information, propose payment arrangements, or explain why the IRS should delay or adjust enforcement.
  
  
• Effect on collection actions: Once your request is filed, most collection actions, including levies on wages, bank accounts, or personal property, are paused until the process hearing is completed.

Why the Hearing Is Important

Requesting a Collection Due Process hearing protects your legal right to challenge IRS actions before they move forward. It can also provide time to set up an installment agreement, negotiate other payment arrangements, or seek professional help to reduce the risk of losing wages, property, or state tax refunds.

Options to Resolve IRS LT11 Notice

If you receive an LT11 Notice, the IRS expects you to take action. Fortunately, several payment options and relief programs are available to help taxpayers manage their tax liability. Choosing the right approach depends on your financial information, ability to make payments, and whether you qualify for special programs.

Payment Plans and Installment Agreements

• Monthly payments: You can set up an installment agreement that allows you to pay your tax debt in smaller, more manageable amounts each month.
  
  
• Other payment arrangements: Sometimes, the IRS may allow short-term extensions or partial payment plans. These options require regular payments but can be adjusted based on financial hardship.
  
  
• Apply online: Many taxpayers can use their IRS online account to apply directly for installment agreements or other payment arrangements.

Offer in Compromise

• Lump sum settlement: If you cannot pay the full balance, you may qualify for an Offer in Compromise. This program allows you to settle your IRS tax debt for less than the total amount owed.
  
  
• Best interest consideration: The IRS will only approve this option if it believes the amount offered is the most it can reasonably collect given your financial situation.

Currently Not Collectible Status

• Financial hardship relief: If making payments would cause severe economic hardship, you can request Currently Not Collectible status. This does not erase your overdue taxes, but it does pause collection actions such as levies on wages or bank accounts.

Penalty Abatement

• Relief from added costs: If you can show reasonable cause, the IRS may remove penalties in certain situations. Penalty abatement can reduce your overall balance and make payment options more manageable.
  
  

When to Seek Professional Guidance

• Tax professional or attorney: Complex cases, such as those involving business assets, an open bankruptcy proceeding, or multiple federal tax liens, may require a tax professional or tax attorney. By accurately presenting your Collection Information Statement and financial information, professional help can increase the likelihood of relief approval.

Taking action on one of these options can prevent the IRS from seizing assets, garnishing wages, or filing new liens. Addressing the notice quickly gives you the best chance to resolve your account in a way that protects your property and income.

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Steps to Take Immediately After Receiving an LT11 Notice

Taking immediate action is the best way to protect your income, property, and financial security. The LT11 Notice is not a letter to ignore, because it is the final warning before the IRS begins levy and lien enforcement.

What You Should Do Right Away

1. Read the notice carefully: Confirm that the information is accurate and that your account reflects the correct balance due.
   
   
2. Check IRS requirements and deadlines: The notice explains when to respond and how to request a Collection Due Process hearing if needed.
   
   
3. Review your online account: Your IRS online account can show updated balances, previous payments, and whether your account is already at risk for enforcement.
   
   
4. Gather financial information: If you want to request an installment agreement, other payment arrangements, or a Currently Not Collectible status, be prepared to complete a Collection Information Statement.
   
   
5. Contact the IRS promptly: Calling the number on the notice or responding by certified mail can help prevent immediate collection actions.
   
   
6. Seek professional help if necessary: If your tax debt involves multiple years, a federal tax lien, or the risk that the IRS seizes assets, consider working with a tax professional or attorney.

Acting quickly protects your legal rights and gives you more payment options, including monthly payments, lump sum settlements, or relief programs based on financial hardship.

Professional Help vs. Handling It Yourself

Not every taxpayer needs outside assistance to respond to an LT11 Notice. Sometimes, it is possible to resolve the matter directly with the IRS. In others, professional guidance is the safer choice.

When You May Handle It Yourself

• Smaller balances: Taxpayers with limited overdue taxes may be able to set up installment agreements or other payment arrangements online without difficulty.
  
  
• Straightforward situations: If the account reflects the correct balance and you can begin making payments, direct contact with the IRS may be enough.
  
  
• Willingness to communicate: Some taxpayers feel comfortable calling the IRS, sending documents by certified mail, and keeping track of deadlines.

When to Consider Professional Help

• Complex debts: Cases involving multiple years, large balances, or a federal tax lien often require specialized knowledge.
  
  
• Risk of asset seizure: If the IRS threatens to seize assets, levy bank accounts, or garnish wages, a tax professional or attorney can negotiate on your behalf.
  
  
• Special programs: Professionals are often more effective in preparing a Collection Information Statement, applying for an Offer in Compromise, or proving financial hardship.

Professional guidance can make the process less stressful and help protect your rights while navigating the IRS collection process.

Disclaimers

The information on this page is provided for educational purposes only. It is not intended as legal or financial advice and should not replace guidance from a qualified professional.

Tax matters can be complex, and every taxpayer’s situation is different. Before making decisions about payment plans, installment agreements, or other IRS requirements, consult a licensed tax professional or tax attorney who can review your specific circumstances.

Frequently Asked Questions

What does the IRS LT11 Notice mean?

The LT11 Notice is the IRS’s final warning before levy action. It explains that the IRS may seize wages, bank accounts, or Social Security benefits if the tax debt is unresolved. It also informs taxpayers of their legal right to request a Collection Due Process hearing to dispute or resolve the balance.

How much time do I have to respond?

Taxpayers generally have 30 days from receiving the notice by certified or registered mail. Responding within this timeframe preserves your rights and pauses most collection activity. If you miss the deadline, the IRS may move forward with wage garnishments, bank levies, or other collection actions against your property.

Can the IRS levy both wages and bank accounts?

The IRS has the authority to levy multiple sources of income or assets simultaneously. This can include wages, bank accounts, and even Social Security benefits. In more serious cases, the IRS may pursue business assets, personal property, or state tax refunds until they address the overdue taxes.

What distinguishes an LT11 from a CP90 notice?

LT11 and CP90 notices are final warnings granting taxpayers the right to a Collection Due Process hearing. The difference is mainly in format and mailing procedures. In either case, ignoring the notice can result in enforcement actions such as federal tax liens, wage garnishments, or property seizures.

Can a federal tax lien be removed?

A federal tax lien may be withdrawn, released, or subordinated if specific IRS requirements are met. Paying the tax liability in full or entering into approved payment plans are common ways to qualify. Until removed, the lien remains a public record representing a legal claim on the taxpayer’s property.

Will the IRS take my state tax refunds?

The IRS can intercept state tax refunds, including the Alaska Permanent Fund Dividend, and apply them toward delinquent tax debt. The IRS often pursues this action until they resolve the balance through monthly payments, an Offer in Compromise, or other payment arrangements. Acting quickly helps taxpayers protect their state refunds and reduce penalties.

Do I need a tax professional or an attorney?

Some taxpayers can manage the LT11 Notice by arranging payments directly with the IRS. However, cases involving large balances, federal tax liens, or risk of asset seizure often benefit from professional help. A tax professional or attorney can prepare financial information, file appeals, and negotiate payment options that protect your best interests.