IRS LT11 Notice: What It Is and How to Respond
Learn how to navigate the formal process initiated by an IRS LT11 notice. Understand your taxpayer rights and the steps for a timely, effective response.
An LT11 notice, formally titled “Final Notice of Intent to Levy and Notice of Your Right to a Hearing,” is the IRS’s final warning before it can legally seize your assets to satisfy an unpaid tax debt. It is not the first attempt to contact you; it follows a series of other notices that have gone unaddressed. The most important detail on this notice is the date, as it starts a 30-day period during which you must respond to protect your assets from seizure.
Understanding the Notice and Its Implications
An IRS levy is the legal seizure of property to pay a tax debt. The LT11 notice confirms the IRS has the authority to execute a levy if you do not respond. This is an administrative action, not a court order, and its scope is broad. A levy can include garnishing a portion of your wages directly from your employer or seizing funds from your bank accounts. If the IRS levies a bank account, the bank must hold the funds for 21 days before sending them, offering a brief period to resolve the issue.
The notice outlines your right to request a Collection Due Process (CDP) hearing with the IRS Independent Office of Appeals. Requesting this hearing within the 30-day timeframe legally prevents the IRS from levying your property while your appeal is considered. The hearing is an opportunity to discuss alternatives to the levy based on your financial circumstances.
Information and Documents for Your Response
To support a request for a payment alternative, you must gather documents that verify your financial situation. This includes proof of income, such as recent pay stubs or profit and loss statements. You also need to document monthly living expenses with bank statements, rent or mortgage statements, utility bills, and car payment records.
Two IRS forms are part of the response process. Form 12153, “Request for a Collection Due Process or Equivalent Hearing,” is used to formally request the hearing. Form 433-F, “Collection Information Statement,” is a detailed financial disclosure the IRS uses to evaluate your ability to pay, requiring you to list all assets and liabilities. Both forms can be downloaded from the IRS website.
Available Resolution Options
The most direct option is to pay the tax debt in full by the deadline on the notice. The LT11 includes instructions for making a payment, either online or by mailing a check with the provided voucher. This action completely resolves the issue and stops all collection activity.
An Installment Agreement is a common alternative for those unable to pay the full amount. This is a structured monthly payment plan to pay off the tax debt over time. The IRS may streamline approval for taxpayers whose total liability is below a certain threshold, but interest and penalties continue to accrue until the balance is paid in full.
An Offer in Compromise (OIC) allows certain taxpayers in significant financial hardship to resolve their tax liability for less than the full amount owed. The IRS evaluates an OIC application using Form 433-F to determine a taxpayer’s reasonable collection potential. The process involves a non-refundable application fee and an initial payment, which may be waived for low-income individuals.
Taxpayers who cannot afford basic living expenses due to severe economic hardship may request Currently Not Collectible (CNC) status. This is a temporary suspension of collection actions, though the tax debt remains and continues to accumulate penalties and interest. The IRS will periodically review the taxpayer’s financial situation to determine if their ability to pay has improved.
How to Formally Respond to the IRS
The formal process to request a CDP hearing begins by mailing Form 12153. This form must be sent within the 30-day window specified on your LT11 notice.
The mailing address for submitting your request is printed on the LT11 notice. Sending your response via certified mail with a return receipt is recommended, as it provides dated proof of mailing that you met the 30-day deadline.
After the IRS receives your timely CDP hearing request, it will pause any planned levy action. You will receive a letter acknowledging your request. Your case will then be forwarded to the IRS Independent Office of Appeals, and an officer will contact you to schedule the hearing, which is often conducted over the phone.