If you receive IRS Letter LT11, it means you are experiencing some trouble with Uncle Sam. Don’t panic. As long as you respond in a satisfactory manner, you can resolve the problem without having your property seized. What are your options for responding? Here are four you should know.
How to respond to IRS Letter LT11
Be sure to open your letter promptly and to read it in full. It will outline how much you owe and how to respond depending on your situation. The four possible responses are:
1. Pay immediately
If you have money to pay the tax debt you owe and agree with the amount shown due on the notice, pay it as soon as possible. You can pay online or can mail a check or money order with the payment slip provided on the notice. If it is not paid in time, the IRS can seize your property.
2. Make arrangements
If you don’t have the money to pay the tax debt in full, call the number listed on your notice right away to discuss your options. You can also visit the IRS page to apply for a payment plan. See if you qualify for an offer in compromise, or request a temporary delay of the collection until your financial situation improves. Once arrangements are made, the IRS usually will not take further collection actions.
3. Send proof of payment
If you have already paid the balance, you will need to send proof of the payment as soon as possible. It’s also a good idea to call the IRS and inform them you have already paid and have sent the proof.
4. File an appeal
If you don’t agree with the amount the notice says you owe, you have the right to a hearing. In this case, you will need to file an appeal before the deadline listed on the notice. You can do so by filling out Form 12153, which is a Request for a Collection Due Process or Equivalent Hearing. Send it in along with any other supporting documents which are requested. Note that the government can still file a Notice of a Federal Tax Lien even if you request a hearing.
If you don’t respond to the notice before the deadline, the IRS can seize your property or the rights to your property. ‘Property’ can include social security benefits, personal assets such as your car and home, business assets, bank accounts, and wages or other income. Not fun! Avoid this action by staying in touch.
Read the definitive guide to IRS notices and letters.
Overwhelmed? Hire expert tax help
Dealing with tax debt can be very stressful. The federal government is not a debtor you want to owe. However, it helps to know the laws and how they can help you. Tax debt relief firms specialize in assisting taxpayers so they can resolve their tax debt. Oftentimes, firms can prevent criminal charges, save time, and cut down on the amount owed. They know the programs the IRS has available and can inform you about those which will be most beneficial for you.
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Jessica Walrack is a personal finance writer at SuperMoney, The Simple Dollar, Interest.com, Commonbond, Bankrate, NextAdvisor, Guardian, Personalloans.org and many others. She specializes in taking personal finance topics like loans, credit cards, and budgeting, and making them accessible and fun.