When you’re on a hiking trip, the last thing you want to do is get to the trail and find out it’s been closed. Or maybe the trail is still open, but the park where it’s located now charges a fee to enter or otherwise enjoy the park amenities. Or worse yet, you needed a reservation to hike or get into the park.
However, none of these unpleasant surprises can compare to getting an LT11 letter. Learning about tax delinquency this way can make you start to dread future trips to the mailbox. If you’re unfortunate enough to open one of these letters from the IRS, the Highland Tax Group is here for you.
What Is an LT11 Letter?
An LT11 letter is a notice from the IRS that because you are delinquent on your taxes, the Agency intends to seize your property or the rights to your property. In practice, the IRS can garner wages, seize bank accounts, or pursue gaining rights to property such as your home. Ignoring an LT11 will not make the problem disappear; it can worsen everything. Failure to respond can result in various issues, including a Notice of Federal Tax Lien and a public notice that the government has a right to your assets and can damage your credit.
Your LT11 letter will include information on how to respond to the letter. You have a few different options that can include, but are not limited to:
- Challenging the levy at a hearing (called a Collection Due Process (CDP) hearing)
- Paying your debt in full
- Establishing an installment agreement (repayment plan)
- Making a partial payment and establishing an installment agreement for the remainder
What Can You Do if You Disagree With the LT11 Letter?
If you can’t afford to pay your tax debt or disagree with the IRS, filing an appeal may be your best option. You should consider filing an appeal if:
- If the amount of tax the IRS says you owe is incorrect
- You were not given sufficient notice before receiving the LT11 letter
- You have already paid your tax debt
How Do You Appeal an LT11 Letter?
The details on how to appeal your case are included in your LT11 letter, but a qualified tax professional at the Highland Tax Group will walk you through the process in detail. Your tax professional will request a Collection Due Process (CDP) hearing by filing a Form 12153. The form must be filed within 30 days of receiving the LT11 letter. Filing the request for a CDP hearing stops any action the IRS is taking against you, including any liens or levies of your property.
If you have missed the 30-day deadline, you may still be able to request an Equivalent Hearing. This alternative will not stop any liens, levies, or collection actions.
What Is a CDP Hearing?
The CDP hearing allows you to share your financial situation with the IRS and submit any documentation supporting your assertion that the IRS is incorrect in its LT11 letter. During the hearing, you can negotiate a settlement that allows you to pay your debt in a manageable way.
Getting Help Responding to an LT11 Letter
Learning that the IRS thinks you owe back taxes and wants to take your property can be an unsettling experience. It’s never easy dealing with the IRS, but this task can be that much harder when you’re trying to convince them that they’re making a mistake.
You should consult with a qualified tax professional to increase your chances of successfully appealing an LT11 letter. The tax professionals at Highland Tax Group have years of experience challenging the IRS. They can help confirm if filing an appeal is the right thing to do and, if so, how to achieve the best possible outcome.