There are few things that are more intimidating than getting a letter from the IRS. When you see that envelope, you may be worried about an impending audit or that something is wrong with your taxes. If you owe back taxes, then the letter that you receive may be a notice that your property will be seized.

IRS Notice LT-11 informs taxpayers that the IRS will seize their property or assets if they do not pay their overdue taxes. You must respond immediately to this notice, or risk the IRS taking money directly from your paycheck or bank account. There are three options for responding: make payment in full, make arrangements to settle or pay over time, or request a hearing.

If you have received Notice LT-11, your first call should be to an experienced New Jersey tax attorney. Your lawyer can analyze the notice and help you determine the best course of action based on the facts of your case and your financial situation.

What Is an IRS Notice LT-11?

A Notice LT-11 is a letter sent by the Internal Revenue Service (IRS), notifying a taxpayer that they have overdue taxes and the IRS has not received payment for those taxes. This letter serves as a notice that the IRS may seize either your property or your right to property if payment is not made by a certain date. It also informs the taxpayer of their right to a Collection Due Process hearing.

This notice sets out the amount of taxes due immediately. It also provides a chart with billing details, listing the tax year, form number, amount due, plus interest and penalties. You should review this chart closely to determine if there are any inaccuracies.

If a taxpayer does not respond to this notice, then the IRS may seize or levy the individual’s:

  • Wages and other income
  • Bank accounts
  • Business assets
  • Personal assets (including your car
    and home)
  • Social Security benefits

In addition, under the Fixing America’s Surface Transportation (FAST) Act, taxpayers with “seriously delinquent” tax debt may have their United States passport denied or revoked. Per the IRS, a seriously delinquent tax debt is when a person is individually liable for $52,000 or more and has not made payments or arrangements to pay this debt.

What Should I Do If I Receive a Notice LT-11?

If you receive an LT-11 notice in the mail, you must respond immediately, or your assets (including your wages, bank accounts, business, and personal assets and Social Security benefits) may be seized by the IRS. You have three options for responding to this notice:

  1. Make an immediate payment.
  2. Contact the IRS to make payment arrangements.
  3. Request a Collections Due Process Hearing.

Whatever action you choose, you must make a decision and respond to the IRS by the date listed in the notice, or face seizure of your property. A seasoned New Jersey tax attorney can counsel you on the best course of action if you have received an LT-11 notice.

After reviewing the amount due, if you agree with the IRS’ assessment, you may choose to make payment in full. If you are able to do so, making a payment in full will clear the liability and help you avoid asset seizure. It may still be wise to consult with a tax lawyer to make sure that the assessment is correct and to avoid any future tax issues.

If you agree with the assessment, but cannot pay the full amount due, you can make arrangements with the IRS to pay off your tax debt over time. You must contact the IRS to make a payment arrangement. After making an installment agreement, the payments may be made through automatic deductions, payroll deductions, or credit card payments.

Alternatively, you may be able to negotiate an offer in compromise to reduce your tax liability. This type of agreement allows you to settle your tax debt by paying an amount that is less than the total amount due. The IRS will only accept offers in compromise in limited situations; your tax attorney can help you determine if you may qualify for this type of agreement.

However, if you disagree with the assessment, then you can request a Collection Due Process hearing by filing Form 12153 with the IRS. To request a hearing, you will need to provide a basis, such as your spouse is responsible for the tax debt, you believe that you already paid part of the tax liability, or that you believe that you should not be responsible for the assessed penalties. Importantly, even if you request a Collections Due Process Hearing, the IRS can still file a federal tax lien against your property. 

The LT-11 Notice is the Most Important IRS Notice You’ll Recieve.

The LT-11 notice is the most important IRS tax notice you will ever receive. Why? Because it gives you important collection due process rights that can be used to successfully resolve your case. Unfortunately, less than 5% of taxpayers take advantage of this right — mostly because they are representing themselves and are completely unaware of their rights.

A collection due process hearing gives you an opportunity to speak with a real living, breathing IRS employee, rather than dealing with endless back and forth letters. The IRS employee is usually better trained and more experienced than most. They are part of the IRS Office of Appeals and they are specially trained to resolve cases. Often, this is the best chance to resolve a tax case successfully. So don’t let this opportunity go to waste!

Have You Received a Notice LT-11? Reach Out to a New Jersey Tax Attorney for Help.

Receiving any type of notice from the IRS can be scary — especially if that notice informs you that your property can be seized and your passport can be revoked. If this happens to you, don’t panic. Contact a New Jersey tax attorney as soon as possible for advice on how to resolve your outstanding tax liability.

At Paladini Law, we offer compassion and top-notch advocacy for people who are experiencing tax issues. We offer consultations 7 days a week, by phone, Skype, or at our Morristown or Jersey City offices. Contact us today at 862-217-6967 or reach out online to schedule a confidential consultation.