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LT11A Notice: How to Respond and Protect your Assets

Silas Bamigbola avatar image
Last updated 10/30/2024 by
Silas Bamigbola
Fact checked by
Ante Mazalin
Summary:
The LT11A IRS notice, or Letter 1058, is a final warning from the IRS that informs you of their intent to seize your property or rights to property due to unpaid taxes. Receiving this notice is serious, as it signals that the IRS may levy your wages, bank accounts, or other assets if the debt remains unpaid. In this article, we will guide you through understanding the LT11A notice, what actions you need to take, and how you can resolve your tax debt efficiently.
Receiving an IRS notice can be alarming, especially when it threatens to seize your assets or property. The LT11A notice, also known as IRS Letter 1058, is a formal warning that the IRS plans to levy your property due to unpaid taxes. This notice serves as the final communication before the IRS takes action, such as garnishing wages or freezing bank accounts. Understanding what this letter means, how to respond, and what your options are can prevent significant financial stress. In this comprehensive guide, we’ll break down each aspect of the LT11A IRS notice to help you resolve your tax debt promptly and avoid any further penalties or enforcement actions.
Struggling with IRS notices? If you’ve received an IRS letter and aren’t sure how to handle it, you might want to explore professional tax relief options. Optima Tax Relief has helped thousands of people resolve their tax issues and get back on track with the IRS. Learn more about how they can assist you with your situation.

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What is LT11A IRS notice?

The LT11A IRS notice, also called the “Final Notice of Intent to Levy,” is a notification that the IRS plans to take collection actions if you do not pay your overdue taxes. This notice is part of the IRS’s collection process and is sent when previous attempts to collect taxes have been unsuccessful.
When you receive an LT11A notice, it means the IRS has not received payment for the taxes you owe and they are now preparing to seize your assets to satisfy the debt. The notice also serves as a warning that the IRS can file a Notice of Federal Tax Lien, which can affect your credit score and your ability to sell or refinance property.

Pro Tip

Set up IRS account alerts online to get real-time notifications on any changes to your tax return or account. This helps you stay updated on adjustments and due dates.

Why does the IRS issue the LT11A notice?

The IRS sends the LT11A notice after multiple previous warnings. By this stage, the IRS is authorized to seize your property to settle your tax debt. This process typically begins if you have unpaid taxes for a significant period, and you have not responded to previous notices or failed to arrange a payment plan. The LT11A notice is the IRS’s final attempt to collect the debt before taking legal action.

What should you do when you receive the LT11A notice?

When you receive the LT11A notice, it is critical to act immediately. Ignoring the notice can lead to serious financial consequences, including wage garnishment, levies on bank accounts, or the seizure of personal property. Here’s what you need to do:
  • Review the notice carefully: The LT11A notice will detail the amount you owe, including taxes, interest, and penalties. It will also provide a deadline by which you must respond to avoid further enforcement actions.
  • Pay the balance due: If you can, paying the amount in full will stop the IRS from proceeding with collection efforts. You can make payments online, by phone, or by mailing a check. It’s important to settle the debt as quickly as possible to avoid accruing additional interest and penalties.
  • Request an installment agreement: If you cannot pay the full amount, the IRS allows you to set up an installment plan. If you owe less than $50,000, you can apply for a payment plan online, which is the fastest way to secure an installment agreement. This will halt collection actions while you make monthly payments.
  • Consider an Offer in Compromise: If paying the full amount or entering a payment plan is financially impossible, you may qualify for an Offer in Compromise (OIC). This agreement allows you to settle your tax debt for less than the full amount if you can demonstrate financial hardship.
  • Contact the IRS immediately: If you cannot pay the full amount or set up an installment plan, it is essential to call the IRS at the number provided in your notice. The IRS may be able to offer other payment options or provide you with more time to resolve the debt.

Pro Tip

If you can’t pay the full amount, pay as much as possible to reduce interest and penalties. Even partial payments show good faith and may prevent enforcement actions.

How to appeal an LT11A notice

If you believe the IRS has made a mistake or you disagree with the amount owed, you have the right to appeal the LT11A notice. The IRS provides taxpayers with an opportunity to request a Collection Due Process (CDP) hearing.

Steps to request a CDP hearing

  1. Submit Form 12153: You need to file Form 12153 with the IRS within 30 days of receiving your LT11A notice. This form requests a hearing with the IRS Office of Appeals, giving you a chance to present your case.
  2. Provide supporting documentation: During the CDP hearing, you can challenge the amount the IRS claims you owe, offer alternative payment options, or dispute the levy. Make sure to provide any documentation that supports your claim.
  3. Understand the potential outcomes: If the appeal is successful, the IRS may agree to reduce the amount owed, accept an installment plan, or remove the levy threat. However, if the appeal fails, the IRS will proceed with the levy as outlined in the notice.

Consequences of ignoring the LT11A notice

Failing to respond to the LT11A notice has significant repercussions. The IRS has broad powers to collect unpaid taxes, and if you do not take action, they can:
  • Levy your wages or bank accounts: The IRS can garnish a portion of your wages or withdraw funds directly from your bank account until the tax debt is paid in full.
  • Seize your property: This includes personal assets such as your home, vehicle, or business property. The IRS can also take other financial assets, like retirement accounts or investment portfolios.
  • File a Notice of Federal Tax Lien: This lien is a public record and notifies creditors that the IRS has a legal right to your property. A tax lien can severely impact your credit score and limit your ability to sell assets.
  • Passports and the FAST Act: Under the FAST Act, taxpayers with “seriously delinquent” tax debt may have their passports revoked or denied for renewal by the U.S. State Department. If you plan to travel internationally, it is especially important to resolve your tax debt quickly.

Pro Tip

Consult a tax professional if you are unsure how to proceed. They can help you negotiate with the IRS and explore options like Offer in Compromise or Currently Not Collectible status.

Payment options for settling your tax debt

The IRS offers several payment options to help taxpayers manage their outstanding debt:

1. Pay in full

Paying the entire balance is the most straightforward way to resolve your tax debt. When the full amount is paid, the IRS will stop adding interest and penalties. You can make payments through the IRS website, over the phone, or by mailing a check or money order.

2. Installment agreement

An installment agreement allows you to pay your debt over time. The Online Payment Agreement tool on the IRS website is the quickest way to apply. This option is available for taxpayers who owe less than $50,000.

3. Offer in compromise (OIC)

If you cannot pay the full amount, an OIC allows you to settle for less than what you owe. However, approval for an OIC is rare, and you must prove that paying the full amount would cause financial hardship.

4. Currently not collectible (CNC) status

If you are facing extreme financial difficulty, you may qualify for CNC status, which temporarily stops the IRS from attempting to collect the debt. However, interest and penalties will continue to accrue, and the IRS may re-evaluate your financial situation in the future.
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Frequently asked questions

What should I do if I cannot afford to pay the full amount on the LT11A notice?

If you cannot pay the full amount owed, you should still make a partial payment to reduce the accruing interest and penalties. Then, consider applying for an installment agreement, which allows you to pay the remaining balance over time. If your financial situation is especially difficult, you may qualify for an Offer in Compromise (OIC) to settle the debt for less than what you owe. Additionally, you can request “Currently Not Collectible” (CNC) status if you are facing extreme financial hardship, which temporarily halts collection efforts.

Can the IRS seize my Social Security benefits?

Yes, the IRS has the authority to levy certain government payments, including Social Security benefits, to collect unpaid tax debts. However, they can only garnish a portion of your benefits, not the entire amount. If your Social Security benefits are your primary source of income, it is essential to reach out to the IRS immediately to discuss payment options and prevent a levy from being placed on your benefits.

How can I stop the IRS from issuing a tax lien after receiving an LT11A notice?

To prevent a tax lien from being filed, you need to take prompt action after receiving the LT11A notice. Pay the amount in full or set up an installment agreement with the IRS. If you cannot pay the full balance, even a partial payment can demonstrate your effort to resolve the debt, potentially preventing a lien. If a lien is already in place, you can request a withdrawal after you have paid the debt or entered a payment agreement.

Can I continue to negotiate with the IRS if they have already levied my bank account or wages?

Yes, you can still negotiate with the IRS even if they have already levied your bank account or wages. You should contact the IRS immediately to discuss payment options, such as an installment agreement or Offer in Compromise. You can also request a Collection Due Process (CDP) hearing if you believe the levy was issued in error or if you were not given a chance to dispute the amount owed. Acting quickly is crucial to minimize the impact of the levy.

What happens if I miss the deadline to request a Collection Due Process hearing?

If you miss the 30-day deadline to request a CDP hearing, you can still request an “Equivalent Hearing” within one year of the date on the LT11A notice. While an Equivalent Hearing does not provide the same protections as a CDP hearing, it still allows you to dispute the tax debt, propose alternative payment arrangements, and potentially prevent future collection actions. However, the IRS may continue with certain collection activities during the Equivalent Hearing process.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
IRS Letter or Notice Number
Notice Description
CP01The IRS verified your claim of identity theft and will monitor your account.
CP01HThe IRS received a tax return with a social security number that belongs to a dead person.
CP02HMoney is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma.
CP03CYou received the First-Time Homebuyer Credit for a house you purchased.
CP04You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice.
CP08You may be entitled to additional money due to the Additional Child Tax Credit.
CP10Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed.
CP10AYour tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed.
CP11You owe money because the IRS amended your return due to a miscalculation.
CP11AYour tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed.
CP11MYour tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed.
CP12You are due a bigger refund because the IRS corrected one or more mistakes on your tax return.
CP12AThe IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return.
CP12E or CP12FThe IRS corrected a miscalculation on your return.
CP12MThe IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return.
CP12RThe IRS made changes to the computation of the Rebate Recovery Credit on your return.
CP13The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero.
CP13AThe IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero.
CP13MThe IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero.
CP13RThe IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero.
CP14You owe money on unpaid taxes.
CP16The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts.
CP21AYou owe money due to the changes you requested that the IRS make on your tax returns.
CP21BYou are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks.
CP21CThe IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero.
CP21EAs a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes.
CP21IThe IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes.
CP22AThe IRS made the changes you requested, and you owe money as a result.
CP22EAs a result of your recent audit, the IRS changed your tax return, and you now owe money.
CP22IThe IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes.
CP23The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes.
CP24The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes.
CP24EThe IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes.
CP25The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero.
CP31You need to update your address because your refund check was returned to the IRS.
CP45The IRS was unable to apply your overpayment to your estimated tax as you requested.
CP49The IRS used all or part of your refund to pay a tax debt.
CP53Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit.
CP57The bank declined your payment, so the IRS was unable to draft funds from your bank account.
CP71A reminder of the amount you owe in tax, penalty, and interest.
CP71AA reminder of the amount you owe in tax, penalty, and interest.
CP71CA reminder of the amount you owe in tax, penalty, and interest.
CP71DA reminder of the amount you owe in tax, penalty, and interest.
CP88The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax.
CP90The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing.
CP91The IRS will levy up to 15% of your social security benefits for unpaid taxes.
CP120The IRS needs documentation of your tax-exempt status.
CP120AYour organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years.
CP130You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed.
CP152The IRS received your return.
CP153The IRS will send your refund by mail because your direct deposit did not go through.
CP161You have an unpaid balance due to the IRS.
CP166Your monthly payment to the IRS did not go through due to insufficient funds in your bank account.
CP178You may no longer owe excise tax because your tax return filing requirements changed.
CP231You need to update your address because your refund was returned to the IRS.
CP259You did not file the business tax return identified in the notice.
CP259AYou should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard).
CP259BThe IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation.
CP259CThe IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation.
CP259DYou must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return.
CP259EYou should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax.
CP259FThe IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return.
CP259GThe IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations.
CP259HAs a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax.
CP276AYou submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time.
CP276BThe IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time.
CP297The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing.
CP297AThe IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing.
CP298The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes.
CP501You have a balance due on one of your tax accounts.
CP503You have an unpaid balance on one of your accounts, and the IRS has not heard from you.
CP504You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe.
CP504BYou have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe.
CP521A reminder that you have an installment agreement payment due.
CP523You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets.
CP601Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas.
CP603No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas.
CP604Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda.
CP604BUsted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda.
CP621Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente.
CP623Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo.
CP711Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones.
CP721Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos.
CP722Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos.
CP771Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP772Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP773Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP774Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP959Usted no radicó su planilla de contribución de negocios identificada en este aviso.
CP2000The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due.
CP3219AThe IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax.
CP3219NThe IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days.
Letter 0012CThe IRS needs additional information to process your tax return.
Letter 0484CThe IRS wants a completed
Letter 0525Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed.
Letter 531IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return.
Letter 0668D(LP 68)The IRS released their levy.
Letter 0549CYour tax bill was paid.
Letter 0681CThe IRS accepted your payment proposal. However, this is not a formal Installment Agreement.
Letter 0757CYou did not adhere to the terms of your Installment Agreement.
Letter LT 11The IRS plans to seize your property or rights to property.
Letter 1058The IRS has not received your payment. It plans to seize your property or rights to property.
Letter 1615 (LT 18)You must respond to the IRS within 10 days of this notice regarding past due tax returns.
Letter 1737 (LT 27)Complete and sign Form 433F, Collection Information Statement.
Letter 1961CYour application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify.
Letter 1962CYour application for a
Letter 2050 (LT 16)The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed.
Letter 2257CThe IRS is providing the payoff amount that you requested.
Letter 226-JAn IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP).
Letter 2271CA request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information.
Letter 2272CAn IRS letter explaining why your request to pay the balance due in installments was declined.
Letter 2273CA confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included.
Letter 2318CA response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged.
Letter 2357CThe IRS is admitting that it did not send you the balance due notices that it should have.
Letter 2603CThe IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property.
Letter 2604CThe IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction.
Letter 2761CThe IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer.
Letter 2789CAn annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid.
Letter 2840CConfirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify).
Letter 3030CProvides an explanation of the tax, penalty, and interest still due on your account.
Letter 3127CA confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities.
Letter 3174A reminder of taxes due after the IRS has sent a Notice of Intent to Levy.
Letter 3217CThe IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify).
Letter 3228 (LT 39)A request to pay the balance due within 10 days using the envelope provided.
Letter 3500The IRS has received your documents, and it needs additional time to review them.
Letter 3572Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment.
Letter 4883CThe IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately.
Letter 4903 (LT 26)You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response.
Letter LP 47The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address.
Letter LP 59The IRS has not received a response to the notice of levy it previously sent.
Audit Letter 2205The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit).
Letter 915You recently underwent an audit, and the IRS informs you that you now owe taxes.

Key takeaways

  • The LT11A notice is a final warning before the IRS takes action to collect unpaid taxes.
  • Ignoring the notice can lead to wage garnishment, asset seizures, and tax liens.
  • You can appeal the notice by requesting a Collection Due Process (CDP) hearing.
  • Payment options include paying in full, setting up an installment agreement, or negotiating an Offer in Compromise.
  • It’s important to act quickly to avoid severe financial penalties and asset seizures.

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