• IRS Letter LT11 is a final notice of intent to levy assets due to unpaid taxes.
• Taxpayers have 30 days to request a Collection Due Process (CDP) hearing to avoid asset seizures.
• Ignoring an LT11 notice can lead to bank levies, wage garnishments, or property liens.
• Consulting a tax professional can help navigate IRS processes and protect personal assets.

Receiving a notice from the IRS is stressful for anyone, but things are dire when it’s Letter LT11. This letter, officially titled the “Final Notice of Intent to Levy and Notice of Your Right to a Hearing,” signals that the IRS is preparing to seize your assets due to unpaid taxes. Understanding what this letter means and, more importantly, how to respond before your bank accounts, wages, or other valuable assets are affected is crucial.

Let’s break down the key points about Letter LT11 and how to protect your financial future if you receive one.

Understanding IRS Letter LT11

Letter LT11 is not just another reminder to pay overdue taxes. It’s the final warning from the IRS before they take action to collect on your debt by seizing assets. If you’ve received this letter, the IRS has likely made several prior attempts to resolve the issue. But now, they’re preparing to escalate matters, which could result in wage garnishments, levies on your bank accounts, or other severe actions.

What’s important to note is that this letter allows you to stop these actions — if you act quickly. Along with the notice of intent to levy, the LT11 also informs you of your right to a Collection Due Process (CDP) hearing, where you can dispute the debt, negotiate a payment plan, or explore other options before any levy occurs. The catch? You only have 30 days from the date of the letter to request this hearing. If you miss that window, the IRS can proceed with taking your assets.

Immediate Steps You Should Take

If an LT11 letter lands in your mailbox, time is of the essence. The first thing you should do is carefully read the letter. Make sure you understand the details: how much you owe, what actions the IRS intends to take, and when the 30-day response window will close. Missing this deadline can have serious consequences, so it’s crucial to be aware of these timelines.

Next, you’ll want to request a CDP hearing. This hearing is your opportunity to negotiate with the IRS and explore alternatives like installment agreements or offers in compromise. It’s important to file your request for the hearing within the 30-day window provided in the letter — doing so will temporarily halt any collection efforts, giving you time to resolve the situation.

Navigating these waters on your own can be tricky. The IRS has specific rules and procedures; making the wrong move could lead to asset seizures. That’s when a tax professional becomes invaluable. With their experience, they can guide you through the process, ensuring you don’t miss critical deadlines or make decisions that hurt your case.

Payment Plans and Alternatives

When you owe back taxes, it’s essential to know that the IRS does offer various options for resolving your debt. The most common approach is to set up an installment agreement, allowing you to pay the amount owed over time. It can be a viable solution if you’re financially stable but unable to pay the debt in full immediately.

However, if you’re facing significant financial hardship, you might qualify for an offer in compromise (OIC), which allows you to settle your tax debt for less than the total amount owed. This option requires detailed financial disclosures to prove you can’t realistically pay the total debt. While it’s difficult to qualify, it can be a lifesaver for those in severe financial distress.

Another possibility is requesting “Currently Not Collectible” (CNC) status, temporarily halting IRS collection actions. This doesn’t erase your debt but gives you some breathing room until your financial situation improves. It’s worth noting that even with CNC status, interest and penalties will continue to accrue.

Avoiding Common Pitfalls

One of the biggest mistakes people make when they receive a letter like the LT11 is ignoring it. The IRS isn’t going to forget about your debt, and ignoring their final notice will only make things worse. If you don’t act within 30 days, the IRS can levy your assets, often without further warning.

Another common error is trying to handle everything yourself without fully understanding the process. While you might be able to call the IRS and arrange a payment plan, the rules surrounding offers in compromise, CNC status, and the statute of limitations on collections are complex. A misstep can lead to more severe consequences, such as levies or wage garnishments. Consulting with a tax professional can help you avoid these pitfalls and ensure that you take the most effective steps toward resolving your debt.

How a Tax Professional Can Help

Receiving an LT11 is serious, but you don’t have to navigate the IRS alone. A tax professional can assess your financial situation, explain your options, and handle the process of requesting a CDP hearing. They’ll work directly with the IRS to negotiate a payment plan, secure an OIC, or determine if you qualify for uncollectible status — all with the goal of protecting your assets.

With prompt action and the right guidance, you can avoid the worst-case outcomes and move toward a solution that safeguards your financial future. The sooner you act, the better your chances of reaching a favorable resolution.