What to Do When You Receive an IRS LT11 Notice of Intent to Levy

Summary

• An LT11 Notice of Intent to Levy is sent by the IRS to taxpayers to inform them of their unpaid tax balance and the potential seizure of their assets.
• This notice is usually preceded by other letters and notices, and it contains detailed information about the tax owed, penalties, interest, and possible consequences.
• Taxpayers have 30 days to respond to an LT11 notice. They can either pay the tax bill in full, request a payment plan, apply for an offer in compromise, or request a Collection Due Process (CDP) hearing to appeal the levy.
• Ignoring the LT11 notice can result in the IRS levying wages, bank accounts, state tax refunds, Social Security benefits, and other assets.
• It is recommended to seek professional tax help if you disagree with the IRS’s decision or need assistance with the CDP hearing process.

Everything You Need to Know About IRS LT11 Notice of Intent to Levy

The IRS has a multitude of tools to collect back taxes from taxpayers. One of the most feared is the tax levy, which is the physical taking of property to pay off a tax debt. Because this is a drastic action, the IRS has to jump through a series of hoops before it can levy your property if you have an unpaid tax balance.

One such “hoop” is sending you an LT11 Notice of Intent to Levy and Notice of Your Rights to a Hearing (LT11). Let’s find out more about this dreaded notice and what you can do if you receive one.

Getting an IRS LT11 Notice in the Mail

According to the Internal Revenue Code (IRC) § 6331(d), the IRS must provide sufficient written notice before levying a taxpayer’s property. In practice, this often means a series of letters and notices sent by mail to the taxpayer’s last known mailing address.

As a result, an LT11 isn’t going to be the first notice you receive from the IRS informing you about an unpaid tax or the potential for a tax levy.

The first letter you get will often be CP14, which tells you that you have a tax bill and what you can do to pay it. If you ignore this notice, you’ll get a series of reminder letters and notices, such as CP501 followed by CP503. Ignoring both of these will usually result in CP504, which is the IRS emphasizing that continuing to ignore them could result in a tax levy. Only after sending these notices (and not getting a response from you) will the IRS mail out LT11.

If you’ve been ignoring previous notices, now is the time to pay attention and take action. The other notices contained warnings, but the LT11 means that the IRS may seize your assets if you don’t respond in 30 days.

What Does the LT11 Notice Mean?

If you get an LT11, you need to take the time to carefully read it. You can get an idea of how much information it contains by seeing a sample LT11 Notice on the IRS’ website. At a minimum, the LT11 will contain the following information:

• The tax amount owed
• Penalties and interest added to the unpaid tax
• The total amount due that includes the tax owed, plus penalties and interest
• An explanation of how you can pay the amount owed, whether paying it in full or over time.
• An explanation of your right to appeal the proposed levy action by requesting a Collection Due Process (CDP) hearing
• An explanation of the penalties and interest added to your tax balance
• An explanation of how you may ask the IRS to remove or reduce the penalties
• The possibility of a tax lien in addition to the tax levy
• The possibility of having your passport revoked or your passport application denied
• A summary of your tax billing history
• Pending deadlines to take action to respond to LT11

If you want to stop the levy, you’ll need to act promptly. This is particularly true if you wish to appeal the levy by requesting a CDP hearing.

How to Respond to an LT11 Notice from the IRS

If you agree that you owe the amount due, you can pay off your tax balance in full by writing out a check or purchasing a money order and mailing it to the IRS with the payment stub provided with LT11. If you want to pay off your tax bill over time, you can request a (short-term) payment plan or a (long-term) installment agreement with the IRS.

Depending on your situation, you may get the IRS to settle your tax debt for less than what you owe. One way to do this is to submit an offer in compromise, or OIC. You can also ask that the IRS reduce or abate some of the penalties.

If your financial situation is especially dire, Currently Not Collectible (CNC) status could be an option. This is where the IRS agrees to pause any collection actions against you due to your significant financial hardship. CNC status is a great way to buy time to figure out what you need to do to deal with your tax debt. But keep in mind that penalties and interest will continue to accrue even though the IRS grants your CNC status request.

But what if you disagree with the IRS concerning the LT11? Maybe you admit to the owed tax, but disagree with the amount. Or perhaps you feel the IRS didn’t properly follow the law before trying to levy your property. Either way, you can choose to file an appeal by requesting a CDP hearing.

Appealing an LT11 Notice

If you want to appeal the LT11 letter, you can do so by completing IRS Form 12153, Request for a Collection Due Process or Equivalent Hearing. To request a CDP hearing, you must complete and file this form with the IRS within 30 days of the date of your LT11 Notice. The IRS Independent Office of Appeals (Office of Appeals) will oversee your appeal, with the hearing taking place over the phone or in person.

The CDP hearing is fairly informal in that no one is sworn in under oath when giving information to the Office of Appeals and no formal records of the proceeding are created. If you disagree with the Office of Appeals’ decision following the CDP hearing, you have 30 days to further appeal your case to the U.S. Tax Court.

Filing your Form 12153 outside the 30-day window (but within one year of the date on your LT11 Notice) means you can still file an appeal, but instead of getting a CDP hearing, you’ll get an Equivalent Hearing. There are two drawbacks that come with an Equivalent Hearing (compared to a CDP hearing).

First, the IRS doesn’t have to stop moving forward with the levy while your appeal gets decided. One of the biggest benefits of filing a CDP hearing is halting the IRS levy, even if it’s just a temporary pause. Second, if you aren’t happy with the results from the Equivalent Hearing, you don’t have the right to a second appeal before the U.S. Tax Court as you would with a CDP hearing.

Ignoring an IRS LT11 Notice

This is the last thing you should do, even if you believe the IRS is wrong or you can’t afford to pay the full amount of your tax debt. If you ignore LT11, any penalties and interest will continue to add up. Then within weeks, you can expect the IRS to levy your:

• Wages;
• Bank account;
• State tax refund;
• Social Security benefits; and/or
• Your business and/or personal assets

In addition to taking your property with a levy, the IRS might also encumber your property with a tax lien. This lien is part of the public record, which can negatively affect your credit history.

If you’re seriously delinquent with the IRS (owe more than $64,000 in taxes, interest, and penalties as of 2025), then the IRS may report you to the U.S. State Department. If the IRS certifies to the U.S. State Department that you’re seriously delinquent with your taxes, the U.S. State Department may refuse to issue you a new or renewed passport. If you already have a current passport, they could revoke it.

The Benefit of Professional Tax Help When Responding to LT11

If you’re okay with the IRS levying your property or have contacted the IRS to pay off your tax bill (in full or gradually over time), then you probably don’t need to talk to a tax professional. However, if you believe the IRS is wrong in trying to levy your property or is trying to collect a tax you don’t owe, then it’s recommended that you get the help of a tax pro.

One reason why you should consider hiring a tax professional when contesting the levy is that the CDP hearing process can be complicated and involve the presentation of detailed and/or complex arguments to the IRS. Having the assistance of someone with experience appealing IRS collection action can dramatically increase the chances of succeeding on appeal.

Even if you don’t want to appeal the IRS’ levy, hiring a tax professional can help you in other respects, such as negotiating with the IRS to settle your tax debt. Having someone to help can save time and money when setting up a payment plan or installment agreement. They might also be able to help you settle your tax debt for less than what you owe, such as when submitting an OIC to the IRS.

Finally, there’s the peace of mind that comes with using someone with years of experience dealing with the IRS. You can sleep better at night knowing every option and possibility is being examined and not have to worry about missing or forgetting something if you were to handle your case by yourself. Also, having a tax professional is convenient because they can respond to letters, make phone calls, and appear at in-person conferences on your behalf so you can focus on your work and family.

Need Help Responding to LT11 Notice of Intent to Levy?

By the time you receive LT11 in the mail, the IRS is well on its way to levying your property. This is why you must act quickly to stop the IRS from freezing your bank account, garnishing your wages, or taking your home. Talk to a tax pro from the Timothy S. Hart Law Group, P.C. to learn what your options are.

This could include challenging the legal basis for the IRS’ collection action or finding a way to give you more time to pay off your tax balance (or even lower it). You can schedule a free consultation by contacting us at 917-382-5142 (New York City) or 518-213-3445 (Albany).