Receiving an Intent to Levy Letter (LT11) from the IRS can be alarming, but rest assured, there are steps you can take to stop it. This notice means the IRS is planning to seize your property due to unpaid taxes, but by acting quickly and understanding your options, you can prevent this from happening. We’ll provide clear and actionable advice on how to address an LT11 notice and protect your assets.
If you’ve received an LT11 notice and need immediate assistance, don’t wait. Contact Silver Tax Group today at 866-812-6504. Our experienced tax attorneys are ready to help you with this challenging situation and find the best solution for your tax issues. Call now to secure your financial future and get the support you need.
Understanding the IRS LT11 Notice
The IRS LT11 Notice also referred to as the Final Notice of Intent to Levy, is a vital communication from the Internal Revenue Service. It signifies the agency’s intent to seize property or rights to the property if a tax debt remains unresolved. For example, you might receive an LT11 notice if you failed to pay your taxes after receiving multiple reminders from the IRS, ignored previous notices, or defaulted on an agreed-upon payment plan.
Receiving this notice indicates a significant stage in the tax collection process, requiring immediate steps to avoid a tax levy. This alert serves as the final warning before potential enforcement actions such as asset levies affecting your bank accounts, paychecks, or other property.
An LT11 Notice provides comprehensive details about your tax condition, including:
- The original unpaid tax amount
- Accumulated interest
- Penalties
- Your current tax balance
It also specifies the potential personal assets the IRS could seize to reconcile your unpaid taxes. These assets can include:
- Bank accounts
- Wages
- Real estate
- Vehicles
- Personal property
- Retirement accounts (with certain protections and limitations)
You need to scrutinize this information and confirm its correctness. Should you identify any discrepancies or mistakes, swift action is required. You should either contact the IRS directly or seek professional help from Silver Tax Group to safeguard your rights.
Difference Between LT11 and Letter 1058
While both the LT11 Notice and Letter 1058 serve similar purposes, there are some key differences between these two IRS communications.
- Similarities:
- Both LT11 and Letter 1058 serve as final notices from the IRS before a levy.
- Both documents signal the IRS’s intent to seize property or rights to property.
- They both provide details about the unpaid tax amount, interest, penalties, and current tax balance.
- Examples: Bank accounts, wages, real estate, vehicles, personal property, and retirement accounts can be levied.
- Differences:
- LT11 is a shorter version of Letter 1058.
- It is typically generated and sent by the IRS’s Automated Collection Systems.
- Example: An LT11 notice might be received if you have defaulted on a payment plan managed by the Automated Collection Systems.
- Example: A Letter 1058 might be received if you have ignored multiple previous notices and the case has been escalated to a Revenue Officer.
Despite these differences, both documents carry the same weight and urgency, signaling the IRS’s intent to levy your assets if the tax debt remains unresolved.
Why the IRS Sends LT11 Notices
The IRS sends LT11 Notices when there is an unpaid balance on a taxpayer’s account, and previous attempts to collect the debt have been unsuccessful. This notice is not the first communication you’ll receive from the IRS regarding your tax debt. It typically follows a series of prior notices and collection attempts.
The LT11 Notice indicates that the IRS is prepared to take more severe actions to recover the unpaid taxes. Ignoring an LT11 Notice can lead to serious consequences, including wage garnishment, bank account levies, or seizures of other assets making it imperative to take immediate action upon receiving this notice to protect your financial interests and resolve your tax issues.
Immediate Actions After Receiving an LT11 Notice
Once you receive an LT11 Notice, immediate measures are necessary to handle your tax situation and prevent the IRS from appropriating your property. The initial step involves promptly contacting the IRS to effectively manage the situation. Apart from financial reasons, this immediate communication is also psychologically significant as it exhibits your readiness to handle the issue, possibly averting more drastic collection actions.
If you’re unable to pay the full amount, try to pay as much as you can to reduce interest and penalties by considering alternatives for negotiating an agreement with the IRS to avoid liens, levies, or seizures if full payment isn’t feasible. Address the situation proactively and demonstrate to the IRS your dedication to resolving the tax debt.
Contacting the IRS
When contacting the IRS regarding an LT11 notice, follow these steps:
- Use the phone number listed on your LT11 notice. This ensures that you’re directed to the appropriate department familiar with your case.
- Be prepared to discuss your financial situation in detail.
- Explore suitable arrangements to address the notice.
If you can’t pay the full amount immediately, inform the IRS representative and be ready to discuss partial payment options or alternative arrangements. Remember, the IRS’s primary goal is to collect the taxes owed, and they are often willing to work with taxpayers who demonstrate a genuine effort to resolve their tax debt.
Consulting a Tax Professional
Considering the complexity and possible implications of an LT11 notice, seeking professional assistance from a tax attorney or certified public accountant is strongly recommended. At Silver Tax Group, we’re well-versed in the nuances of IRS negotiations and can safeguard your rights throughout the process. Our team of seasoned tax professionals offers guidance customized to your specific circumstances.
We can help you understand your tax problem, talk to the IRS on your behalf, and find the best solution for you.
Responding Within 30 Days
Taxpayers have just 30 days from the date of the notice to take action, whether that’s paying the debt in full, setting up an installment agreement, or requesting a Collection Due Process (CDP) hearing. A Collection Due Process (CDP) hearing is a legal procedure that allows taxpayers to dispute the IRS’s intent to levy their property or to challenge a lien. During a CDP hearing, you can present your case, propose alternative payment arrangements, and address any errors in the IRS’s assessment. It is a crucial opportunity to resolve tax issues before the IRS takes enforcement actions.
Failing to respond within this timeframe can have serious consequences. The IRS may file a Notice of Federal Tax Lien and/or issue a levy against your wages, bank accounts, or other assets if you miss this deadline. At Silver Tax Group, we emphasize the importance of this deadline and can help you take appropriate action within the required timeframe to protect your rights and assets.
Legal Rights and Due Process
The LT11 notice not only informs you of the IRS’s intent to levy your property but also outlines your legal rights and the due process involved in the potential seizure of your assets. It’s important to note that the IRS must follow certain procedures before taking any levy action. These procedures include:
- Issuing a formal Notice of Intent to Levy and Your Right to a Hearing
- Providing written notification to the taxpayer
- Allowing the taxpayer the opportunity to address the issue before any property seizure occurs.
These procedures ensure that taxpayers are aware of the situation and have a chance to resolve it before any drastic actions are taken, especially when it comes to tax refunds.
Upon receiving an LT11 notice, you have several options:
- Dispute the amount
- Request a CDP hearing
- Pay the amount in full within 30 days
- Work out a payment plan or offer-in-compromise
Failing to act within the 30-day window may result in the IRS beginning to seize your property, and you may waive your ability to challenge these seizures.
Requesting a Collection Due Process Hearing
If you disagree with the IRS’s levy actions or wish to discuss alternative payment options, requesting a Collection Due Process (CDP) hearing is a crucial step. To initiate this process, you must file IRS Form 12153, Request for a Collection Due Process or Equivalent Hearing. It’s important to file this request within 30 days of receiving the LT11 notice to ensure your right to a hearing is secured.
A CDP hearing provides an opportunity to discuss payment alternatives with the IRS and can potentially prevent the escalation of collection actions. Examples of payment alternatives include setting up an installment agreement, which allows you to pay your debt over time, or applying for an Offer in Compromise, where you may settle your debt for less than the full amount owed. Additionally, you might discuss the possibility of a temporary delay in collection if you’re experiencing significant financial hardship.
At Silver Tax Group, our experienced tax attorneys can assist you in requesting a CDP hearing, ensuring that your rights are protected and that you have the best possible chance of reaching a favorable resolution. We understand the complexities of the appeal process and can guide you through each step, making it easier and more effective.
Understanding I.R.C. § 6331
I.R.C. § 6331 provides the IRS with the authority to levy property or property rights if taxes are not paid. Specifically, it grants the IRS the power to levy on all property and rights to property belonging to a taxpayer who owes back taxes. As the IRS intends to enforce tax collection, understanding this legislation is essential for taxpayers.
It’s important to note that this authority is not unlimited. The IRS is required to wait at least 10 days after issuing a notice and demand for payment before they can proceed with a levy. Understanding these provisions can help you gauge the timeline of potential IRS actions and emphasize the importance of prompt action when dealing with tax debts.
At Silver Tax Group, we can help you navigate the implications of I.R.C. § 6331, ensuring that you understand your rights and the IRS’s limitations in the collection process.
Payment Options to Resolve Your Tax Debt
The Internal Revenue Service provides several avenues for taxpayers to settle their outstanding balances, each with its own advantages and considerations. It’s important to carefully evaluate these options in light of your financial situation to determine the best course of action.
Paying the Full Balance
If you have the means to do so, paying the full balance is often the most advantageous option when dealing with an LT11 notice. By settling your tax debt in full, you immediately stop the accumulation of interest and penalties, which can significantly increase your overall liability over time. The IRS provides convenient online payment options, making it quick and easy to settle your balance in full. If you’re a business owner facing tax debt, you might consider exploring small business loan options to facilitate full payment.
At Silver Tax Group, we can help you:
- Evaluate your financial situation
- Determine if paying the full balance is a viable option for you
- Potentially save you money in the long run by avoiding additional interest and penalties.
Setting Up an Installment Agreement
If paying the full amount isn’t feasible, one of the most straightforward options is to set up an installment agreement, which allows you to manage your tax debt over time. This can be particularly beneficial for taxpayers who are current on their tax filings and have balances under $50,000. The IRS’s Online Payment Agreement tool offers a quick and efficient way to establish such an arrangement. While an installment agreement can provide relief from immediate payment pressure, interest and penalties may continue to accrue on the unpaid balance.
The IRS’s Online Payment Agreement tool is the fastest way to apply for and receive approval for an installment plan. However, if you’re unable to apply online or prefer alternative methods, you can also request an installment agreement by calling the number provided on your LT11 notice or by mailing in a request.
It’s important to note that setting up an installment agreement can help mitigate the risk of receiving future LT11 notices, as it demonstrates your commitment to resolving your tax debt. At Silver Tax Group, we can assist you in navigating the installment agreement process, ensuring that you select a payment plan that aligns with your financial capabilities while satisfying the IRS’s requirements.
Exploring Offer in Compromise
For taxpayers facing significant financial hardship, an Offer in Compromise (OIC) may be a viable option. This program allows qualified individuals to settle their tax debt for less than the full amount owed. The OIC program has strict eligibility requirements, and not all taxpayers will qualify.
The IRS carefully evaluates your ability to pay, income, expenses, and asset equity to determine if you’re eligible for an OIC. At Silver Tax Group, our experienced professionals can provide invaluable assistance in setting up tax relief options, including Offers in Compromise. We can help you assess your eligibility, prepare a compelling offer, and handle the OIC process, potentially allowing you to resolve your tax debt for a fraction of the original amount owed.
Preventing Future LT11 Notices
While it’s vital to address your current LT11 notice, it’s equally important to implement measures to avoid future tax complications. Keeping precise financial records plays a major role in preventing future IRS LT11 notices. By maintaining thorough and orderly records of your income, expenses, and tax-related transactions, you can ensure your tax returns are accurate and comprehensive, thereby reducing the chances of discrepancies that could attract IRS scrutiny.
Another successful tactic involves frequent review and updating of your tax information, including your tax return. This proactive method enables you to spot and tackle potential issues before they develop into major problems. You might consider configuring automatic payments for your tax duties to prevent missed payments, which could result in penalties and amplified IRS scrutiny.
Additionally, implementing tax planning strategies throughout the year can help you manage your tax liabilities more efficiently, reducing the risk of unexpected tax debts that could result in future LT11 notices.
Timely Tax Payments
One of the most efficient methods to avoid future LT11 notices is to guarantee punctual tax payments. Late tax payments can lead to accruing interest and penalties from the IRS, rapidly transforming a manageable tax debt into a considerable financial load. By maintaining a habit of prompt payments, you not only sidestep these extra charges but also foster a positive compliance history with the IRS. This favorable record could be priceless if you ever need to negotiate with the IRS down the line.
Timely tax payments help you avoid more severe consequences such as wage garnishments or property liens, which the IRS may impose on delinquent taxpayers with seriously delinquent tax debt. At Silver Tax Group, we can help you develop a strategy to ensure your tax obligations are met on time, protecting you from potential IRS enforcement actions and preserving your financial stability.
Regular Communication with the IRS
Keeping communication channels open with the Internal Revenue Service is critical in preventing tax problems from getting worse. Swift responses to IRS notices guarantee that potential issues are tackled before they result in harsher actions like levies. Proactively handling IRS inquiries and concerns demonstrates your dedication to settling any tax-related issues, which often results in more positive outcomes.
It’s also important to keep the IRS informed of any significant changes in your financial situation that may affect your ability to meet your tax obligations. This transparency can lead to more flexible payment options and help you avoid unexpected enforcement actions. Regular updates with the IRS also provide an opportunity to correct any errors or misunderstandings promptly, preventing minor issues from snowballing into major problems.
At Silver Tax Group, we can help you maintain effective communication with the IRS, ensuring that your tax matters are handled efficiently and professionally.
Utilizing Professional Tax Services
Employing professional tax services can significantly alter the management of your overall tax situation and prevent future LT11 notices. Tax professionals, such as those at Silver Tax Group, bring years of experience in intricate tax situations, guaranteeing compliance with IRS standards and regulations. Our team can identify deductions and credits that you might miss on your own, potentially lowering your tax liability and the likelihood of underpayment.
Professional tax services can save you time and significantly reduce the stress associated with tax filing and compliance. At Silver Tax Group, we offer comprehensive tax consulting services to help individuals and businesses resolve tax-related issues while providing valuable guidance on future tax planning. By leveraging our skill set, you can stay ahead of potential tax problems, ensure accurate filings, and maintain a positive standing with the IRS, effectively minimizing the risk of receiving future LT11 notices.
How Silver Tax Group Can Help
At Silver Tax Group, we understand the stress and complexity that comes with receiving an LT11 notice. Our mission is to provide assertive, nationwide tax representation and resolve tax issues efficiently. With over four decades of collective experience in handling tax-related issues, our team, led by Attorney Chad Silver, is well-equipped to tackle even the most difficult tax problems.
We are dedicated to helping our clients resolve their tax problems effectively. We understand the emotional and financial toll that tax issues can take, and we strive to connect with our clients on a personal level, ensuring that their concerns are addressed promptly and professionally. Our client-focused approach sets us apart in the field of tax resolution. We communicate professionally and use a first-person point of view to create a personalized experience for each of our clients.
Professional Representation
Choosing Silver Tax Group means more than just acquiring a tax service; it means securing a team of seasoned tax attorneys who will champion your interests in all interactions with the IRS. Our professionals excel at maneuvering through the intricacies of the IRS system, safeguarding your rights throughout the proceedings. Whether you’re facing a simple tax dispute or a complex case involving:
- Criminal tax matters
- IRS revenue officers
- US Tax Court cases
- Tax appeals
With Silver Tax Group, you can be confident that you have a knowledgeable and experienced advocate working tirelessly to secure the best possible outcome for your unique financial situation.
Customized Tax Solutions
At Silver Tax Group, we acknowledge that every tax situation is distinctive. As such, we offer tailored tax solutions that resonate with each client’s individual business and financial objectives, ensuring adherence to the most recent tax laws. Our tailored tax planning strategies encompass a wide range of services, including maximizing deductions, credits, and retirement planning, all aimed at reducing your overall tax liability. We work with businesses across various industries nationwide, helping them achieve their financial objectives while dealing with difficult tax situations.
We handle intricate cases involving criminal tax matters, ERC Defense, tax audits, and participation in programs like the IRS Fresh Start Program. Beyond tax representation, we offer a comprehensive suite of services, including accounting, tax preparation, virtual CFO services, and business consulting, providing a one-stop solution for all your tax and financial needs.
Silver Tax Group: Nationwide Reach
Although our main office is in Austin, Silver Tax Group extends its services nationwide, leveraging our experience to address IRS issues all over the United States. Our national reach enables us to cater to clients from coast to coast, providing an array of tax services customized to meet the distinct needs of individuals and businesses across the country.
Whether you’re dealing with state-specific tax issues or federal tax matters, our team has the knowledge and resources to provide effective solutions. Our nationwide reach ensures that no matter where you are located, you can benefit from our comprehensive tax services and dedicated representation.
At Silver Tax Group, we’re committed to helping clients across the United States navigate their tax challenges and achieve optimal outcomes. If you’re facing tax issues or have received an LT11 Notice, don’t wait. Contact us today for assistance and personalized solutions. Call us at 866-812-6504 to speak with a tax professional and take the first step toward resolving your tax problems.
Frequently Asked Questions
What should I do if I cannot afford to pay my tax debt?
If you cannot afford to pay your tax debt, it’s important to communicate with the IRS as soon as possible. You may be eligible for an installment agreement, which allows you to pay off your debt over time. Additionally, the IRS offers an Offer in Compromise program for those who qualify, which can settle your tax debt for less than the full amount owed.
Can the IRS levy my property without warning?
No, the IRS cannot levy your property without warning. Before taking such action, the IRS must issue a formal Notice of Intent to Levy and allow you to address the issue. This notice provides you with 30 days to respond, during which you can pay the debt, set up a payment plan, or request a Collection Due Process hearing.
What types of property can the IRS seize?
The IRS has the authority to seize various types of property to satisfy unpaid tax debts. This includes bank accounts, wages, real estate, vehicles, and other personal property. Even retirement accounts can be levied, although certain protections and limitations apply.
How can I dispute the amount the IRS claims I owe?
To dispute the amount the IRS claims you owe, you should request a Collection Due Process hearing by filing IRS Form 12153 within 30 days of receiving the LT11 notice. During this hearing, you can present evidence and arguments to challenge the IRS’s assessment. It’s advisable to have documentation and, if possible, professional representation to strengthen your case.
What happens if I ignore the LT11 Notice?
Ignoring an LT11 Notice can lead to severe consequences, including wage garnishment, bank account levies, and the seizure of other assets. The IRS may also file a Notice of Federal Tax Lien, which can damage your credit score and hinder your ability to obtain loans or other forms of credit. Prompt action is crucial to avoid these detrimental outcomes and to explore possible resolutions.
