If you’ve received an IRS Notice of Intent to Levy, like Letters 1058 or LT11, you’re likely feeling the weight of unresolved tax issues pressing down. These notices aren’t just another piece of mail—they’re a clear signal that the IRS is about to take serious action against your assets. Whether it’s the possibility of losing your wages, freezing your bank accounts, or even seizing your property, the stakes are incredibly high.
It’s common to feel overwhelmed in this situation, especially if you’ve already ignored previous warnings from the IRS. Now, with your future on the line, the pressure to act has never been more urgent. Understanding exactly what these notices mean and how to respond is the first step in protecting your assets and avoiding severe consequences.
This guide will help you understand your options at this crucial time. Whether it’s paying off the debt, negotiating with the IRS, or requesting a hearing, you can take control of the situation. Professional help can make a big difference. Hopkins CPA Firm has the expertise to guide you through this process, protecting your rights and helping to restore your financial stability.
What is a Notice of Levy?
An IRS Notice of Intent to Levy is a serious warning from the IRS about unpaid taxes. If you receive a letter like Notice LT11, it means the IRS is notifying you that you owe taxes and giving you a deadline to resolve the debt. If you don’t take action by that date, the IRS has the right to seize your property or assets to cover the debt.
Another type of notice you might receive is IRS Letter 1058. This letter is the final warning before the IRS starts taking your assets. It’s crucial to address this letter immediately, either by paying the taxes you owe, setting up a payment plan, or requesting a hearing if you think there’s been a mistake. Ignoring this notice can lead to serious consequences, like having your wages garnished, your bank accounts frozen, or even your property seized.
Understanding IRS Letters 1058 and LT11, Are They Same?
Yes, IRS Letters 1058 and LT11 are essentially the same. Both of these letters are sent by the IRS to warn you that if you don’t pay your overdue taxes, they plan to take your assets.
The main difference is that LT11 is a more concise version of Letter 1058.
Both letters also inform you of your right to request a hearing to discuss your situation before the IRS takes further action. You typically have 30 days to respond to these notices. If you don’t act within that time, the IRS may move forward with actions like placing a lien on your property or seizing your assets.
If you need assistance with a tax lien release, we’re here to help at Hopkins CPA Firm.
Reasons You May Receive a Notice of Intent to Levy
If you receive a Notice of Intent to Levy from the IRS, it’s a serious indication that they plan to take your property or assets because of unpaid taxes. Here’s why you might get this notice:
- Unpaid Tax Debt: The most common reason is that you have taxes that haven’t been paid. The IRS sends this notice after they’ve tried other ways to collect the money you owe.
- Ignoring Previous IRS Notices: Before sending this notice, the IRS usually sends several reminders asking you to pay your taxes, like notice CP501, notice CP502, and notice CP503. If you don’t respond to these, the IRS takes more serious steps.
- No Response to the Final Warning: If you ignored the CP504 notice, which is the last reminder before the IRS takes action, they might send you a Notice of Intent to Levy, such as LT11 or Letter 1058, to let you know they are about to seize your assets.
- Not Setting Up a Payment Plan: If you haven’t made arrangements to pay your debt, like a payment plan, the IRS might send this notice as a final step before taking your property.
- Large Outstanding Tax Debt: If you owe a significant amount of money (over $52,000), the situation becomes more critical. Along with the Notice of Intent to Levy, the IRS might also work with the U.S. State Department to deny or revoke your passport.
Getting a Notice of Intent to Levy means the IRS has already tried to get you to pay your taxes several times, and now they’re preparing to take more drastic action. It’s important to act quickly to prevent your property or assets from being taken.
If you need IRS tax debt settlement help, act quickly to explore your options and avoid losing your property or assets. Hopkins CPA Firm can help guide you through this process, ensuring you take the right steps to protect your financial future.
Steps the IRS Takes Before Issuing a Notice
Before the IRS sends out a levy notice, such as an LT11 or Letter 1058, they follow a series of steps to collect unpaid taxes. Here’s how the process typically unfolds:
- First Notice (CP501):
The IRS begins by sending a reminder notice to inform you that you owe taxes. This initial letter outlines the amount due and provides instructions on how to pay it. - Second Notice (CP502):
If no action is taken after the first reminder, the IRS will send a follow-up notice. This second letter is more pressing and includes the updated amount you owe, with additional IRS penalties & interest. - Third Notice (CP503):
Should the previous notices go unanswered, the IRS will send a third letter. This notice increases the urgency, as it reflects further penalties and interest, highlighting the importance of addressing the unpaid taxes. - Final Warning (CP504):
The last step before a levy notice is issued involves a final warning. This letter indicates that the IRS may take more serious actions, such as seizing your state tax refunds or other assets if the debt is not resolved within a given timeframe.
By the time you receive an LT11 or Letter 1058, the IRS has made multiple attempts to settle the debt. Respond to these earlier notices promptly to avoid more severe consequences.
If you’re facing an IRS bank levy, Hopkins CPA Firm can provide the guidance and support needed to address the situation and help you navigate the process effectively.
Consequences of Ignoring the IRS Notice
If you ignore the LT11 notice, the IRS will move forward with levying your assets. You won’t know which asset they will target, and interest and penalties will continue to add up. If you’re unsure how to proceed, it’s a good idea to consult with a tax professional for guidance.
How to Respond to an IRS Notice of Intent to Levy?
This section will help you through the steps of addressing an IRS LT11 Notice. It’s important to be aware of your choices so you can make decisions that protect your assets and effectively resolve any tax issues.
Actions to Take When You Receive an LT11 Notice
When you receive an LT11 Notice from the IRS, it’s crucial to act promptly to avoid having your assets seized. Here’s what you can do:
- Pay the debt in full to resolve the issue immediately.
- Request a hearing to discuss the matter with the IRS.
- Contact the IRS to arrange a payment plan.
If you’re unsure about the best course of action or if you need help negotiating a payment plan or disputing the notice, consult someone who knows the drill. CPAs and tax attorneys can review your situation and guide you on your rights and options.
If You Agree with the IRS and Can Pay in Full
If you accept the IRS’s assessment and can pay the full amount, doing so will clear your debt and stop the IRS from taking further action. Even if you can pay, consulting a tax attorney might still be beneficial to ensure all matters are handled correctly and to address any remaining tax issues.
If You Agree but Can’t Pay the Full Amount
If you agree with the IRS but cannot pay the full amount at once, you can set up a payment plan. Some possible options include:
- Paying in installments
- Setting up automatic payments from your bank account
- Making payments through payroll deductions
- Using a credit card to pay
You might also explore an offer in compromise, which could allow you to settle your debt for much less.
If You Disagree with the IRS
If you don’t agree with the LT11 Notice, you have the right to request a hearing to present your case. You can request this hearing if, for example:
- You believe your spouse should be responsible for the debt.
- You think certain penalties are unfair.
- You believe you’ve already paid part or all of the amount owed.
End Note!
Dealing with an IRS LT11 or Letter 1058 can be stressful, but understanding your options is paramount. When you receive these notices, it’s important to know what is a notice of levy entails, carefully review your tax situation, and consider the best steps to take. Acting quickly and being well-informed can help you avoid serious consequences.
If the situation becomes more complicated or you need to deal directly with the IRS, getting professional help can be a smart move. Having someone who knows the process can greatly impact the outcome.
That’s where Hopkins CPA Firm’s best IRS consultant can help. With our expertise in tax laws, we’re ready to guide you through each step, making sure your rights are protected and your situation is resolved as smoothly as possible.
In addition to handling notices like these, we also assist with IRS tax audit defense and IRS tax fraud cases, ensuring comprehensive support for all your tax-related needs.
