En esta noticia
The Internal Revenue Service (IRS) sends LT11 letters to certain taxpayers who owe federal taxes and whose cases have moved further along in the collection process. This final notice warns that the agency intends to seize property or income to collect the tax debt.
The warning matters because a levy can reach wages, bank accounts and other assets until the correct amount is covered.
The notice also explains the right to request a collection due process hearing. In general, there is a 30-day window from receipt of the LT11 or Letter 1058 to request it, although it is essential to check the deadline and instructions in the notice received.
What Is the IRS LT11 Letter and Who Gets It?
The LT11 letter is a final notice of intent to levy that the IRS sends when a tax debt remains unresolved. The agency has already told the taxpayer there is an outstanding balance, and if it is not paid or a resolution is not reached, it can move forward with collection actions.
The letter can be sent to taxpayers with unpaid federal taxes, including employees, self-employed workers, and business owners, and includes information about the amount claimed, the intent to levy, and the options available to respond.
Why Can the IRS Garnish Wages and Bank Accounts After Sending LT11?
The IRS can use a levy to take certain assets or income and apply them to a tax debt. The measure can affect wages, bank accounts, business income, personal property, and certain state tax refunds.
In some cases, it can also affect other assets, including vehicles, real estate, and Social Security benefits, subject to the applicable legal exceptions.
In addition, the agency may file a federal tax lien, which is a legal claim against the taxpayer’s property and rights to property and can make it harder to get credit.
If the taxpayer does not respond to the LT11 letter or resolve the tax debt, the IRS can move ahead with a levy on wages, bank accounts, and other property. The LT11 also explains the right to request a collection due process hearing before the IRS Independent Office of Appeals.
What Should Taxpayers Do If They Receive an IRS LT11 Letter?
Those who receive an LT11 letter should review the amount claimed, check the deadline, and follow the IRS instructions. Depending on their situation, they may want to consider the following options:
- Verify the debt: Check that the balance is correct and that previous payments are recorded. If they have already paid, they should provide the corresponding proof.
- Request a hearing: If they do not agree with the debt or the collection action, they can request a collection due process hearing using IRS Form 12153. The general deadline is 30 days from receipt of the notice, so they should check the deadline listed in the letter.
- Ask about a payment plan: Those who acknowledge the debt but cannot pay it all at once may request an installment agreement if they qualify. Depending on the circumstances, this may affect the collection actions the IRS can take.
- Seek help: Those who have trouble resolving the issue can turn to the Taxpayer Advocate Service, which helps resolve certain tax problems.
It is worth noting that ignoring the letter does not eliminate the debt or guarantee that collection actions will stop, which is why the taxpayer should review the available options and act within the applicable deadlines.