By Pedro Bianco
En esta noticia
When a tax debt is not resolved, the IRS does not go directly to the seizure: before that, it sends a series of letters, and there is one in particular that works as the last warning sign.
It is the Final Notice of Intent to Levy, known as Notice LT11 (or Letter 1058), and its arrival marks the moment when the clock really starts ticking. From that point on, the taxpayer has a limited time to act before the agency can take their money.
The IRS’s last warning before seizing
The LT11 is the formal notice with which the IRS communicates its intention to levy to collect an unpaid debt, and it also informs the taxpayer of the right to request a hearing. It is not the first letter that arrives: it is usually the last link in a chain of prior notices (such as CP14 and later reminders). That is why it is considered the final warning: after this, the IRS is authorized to move against assets.
The agency sends it by mail to the taxpayer’s last known address and, according to its own rules, is not required to confirm that the person received it.
One by one: what property can the IRS seize
Seizure is a legal seizure of property to settle the debt. Once the deadline passes without a response, the IRS can move against different assets, including:
- The money in bank accounts.
- Wages, through a withholding applied to each payment until the debt is paid off or the levy is lifted.
- Social Security benefits.
- State tax refunds.
- Other property, such as vehicles and even a home.
To levy, the IRS does not need a court order. That is why ignoring the letter is the worst path.
How much time there is to solve the problem and when it starts to run
The deadline to act is until the date indicated in the notice, generally 30 days, but that period starts to run from the date printed on the letter, not from the day one opens or reads it. If the notice sat in the mailbox for several days, those days are already counted. And there is one detail that the IRS itself emphasizes: that deadline cannot be extended for any reason.
That is why, as soon as the LT11 arrives, the wisest thing is to count the days from the date of the letter and not let time go by, because every day lost reduces the room to maneuver.
How to stop the IRS levy
Within that 30-day period, there are several ways to stop or avoid the levy:
- Request a Collection Due Process hearing (Collection Due Process or CDP). It is the main remedy offered by the letter: filed on time, with Form 12153, it suspends collection action while the case is under review by the IRS Independent Office of Appeals. At that stage, payment alternatives can be proposed, the account can be requested to be declared not collectible, or other defenses can be raised.
- Pay the debt in full, if possible.
- Agree to an installment payment plan (installment agreement), which once in effect can stop the levy.
- Submit an offer in compromise for those who qualify to settle for less than the total amount.
- Request “currently not collectible” status if paying would create a real economic hardship, which suspends collection while that situation lasts.