Receiving an LT11 letter from the Internal Revenue Service (IRS) can be upsetting. You are most likely not delinquent on your taxes by choice but have fallen on hard times. Unexpected situations that derail our finances happen to the best of us. Unfortunately, the IRS rarely understands the hardships of taxpayers. It may be tempting to ignore an LT11 letter, but its consequences are severe. Below is a brief description of what may happen if you fail to respond to an LT11 letter. When you work with Highland Tax Group, we will walk you through your options and work with the IRS to find a manageable solution.
Asset Levy
When you are delinquent on your taxes and fail to respond to the LT11 letter, the IRS has the authority to seize your assets. What this looks like in practice can be:
- Freezing your bank account
- Seizing funds from your bank account
- Garnering your wages
- Taking a portion of your Social Security benefits
- Placing a lien or seizing your real property, such as your car, home, or other high-value assets
Federal Tax Lien
A Federal tax lien is a lien against your property; it applies to all property you have, including your home and cars. A federal tax lien prevents you from selling the properties and is a public notice that you owe money to the federal government. The lien will also cause considerable damage to your credit score and remain on your report for years, even after the debt is paid.
Waiver of Your Right to Appeal
Your LT11 letter includes information on exercising your right to appeal by requesting a Collection Due Process (CDP) hearing. A CDP hearing is the best way to get a more palatable solution in your case. You do not want to lose your right to an appeal. Your Highland Tax Group tax professional can represent you at this hearing and can negotiate an alternative solution that works for you and satisfies the IRS.
How Highland Tax Group Can Help
At Highland Tax Group, all our tax professionals have years of experience responding to LT11 letters on behalf of our clients. Our goal is to minimize your stress and get you a financially feasible outcome while minimizing the short—and long-term consequences of your tax debt. Don’t ignore your LT11 letter; contact us and let us help today.