IRS Notice LT11 (Letter 1058): What It Means and What to Do

Why did I get an LT11?

Common reasons include:

• Earlier balance-due and intent-to-levy notices were not paid or resolved
• No payment plan or other arrangement is in place for the balance
• An installment agreement defaulted or was not set up
• Your case was assigned to the Automated Collection System (LT11) or to a revenue officer (Letter 1058)

What should I do?

1. Read the letter carefully and note the date by which you must request a hearing.
2. If you can, pay the balance in full. The IRS says this stops more interest and applicable penalties. Check your balance in your IRS Online Account.
3. If you can't pay in full, pay what you can and request an installment agreement. If you owe less than $50,000, the Online Payment Agreement tool may work. You need to be current on your tax filings.
4. If you already paid or think a payment wasn't credited, send proof of payment to the address at the top of the letter.
5. If you can't pay, call the number on the letter to discuss your options.
6. If you disagree with the levy, or want Appeals to consider a payment alternative, file Form 12153 by the date on the letter.

What documents do I need?

• The LT11 or Letter 1058, including the envelope (it shows how the letter was mailed)
• Proof of any payments made on the balance
• Form 12153, if you plan to request a hearing
• A financial statement (Form 433-A for individuals, Form 433-B for businesses), if you want Appeals to consider a payment plan or other alternative
• Your tax returns for the years listed, and any earlier IRS notices

What should I avoid?

• Don't miss the hearing deadline on the letter. A late request gets only an equivalent hearing, with no right to go to Tax Court.
• Don't assume a third party (such as your employer or bank) can stop a levy for you. Resolving it generally means dealing directly with the IRS using the contact information on the letter.
• Don't send a hearing request without explaining your reasons. Appeals generally considers only issues raised at the hearing.

What if I disagree with an LT11?

Request a Collection Due Process (CDP) hearing with the IRS Independent Office of Appeals. Send Form 12153, Request for a Collection Due Process or Equivalent Hearing (or a written request with the same information), to the address on your letter by the date shown. For proposed levies, that is 30 days from the date of the letter. A timely request generally stops levy action for the periods involved while the hearing is pending. After the hearing, you have 30 days after Appeals' determination to seek review in the U.S. Tax Court. If you miss the deadline, you can still request an equivalent hearing within one year after the date of the levy notice, but you can't go to court over the decision. In a CDP hearing you can usually dispute the amount owed only if you had no earlier opportunity to do so. If Appeals can't consider it, the IRS lists paying and filing a claim for refund, audit reconsideration, or an Offer in Compromise (Doubt as to Liability). The Collection Appeals Program (Form 9423) is another option, but it has no court review.

What happens if I ignore an LT11?

The IRS can levy your wages or bank accounts up to the amount owed. Property it can levy includes wages and other income, bank accounts, business and personal assets (including your car and home), Alaska Permanent Fund dividends, state tax refunds and Social Security benefits. It may also file a Notice of Federal Tax Lien, which can affect your credit. Seriously delinquent tax debt may lead to passport denial or revocation.

What else should I know about LT11?

LT11 and Letter 1058 are the same legal notice (the IRC 6330 pre-levy Collection Due Process notice) from two parts of the IRS. The Automated Collection System sends the LT11, and a revenue officer assigned to your case sends Letter 1058. The date that matters is the one printed on the letter. Publication 594 and Publication 1660 count the 30 days from the date of the notice, while the IRS's CDP FAQ page says "30 days from receipt", so the safest approach is to go by the date on the letter. A timely Form 12153 is the main protection this letter gives. It generally stops the levy for those periods during the hearing, lets Appeals consider alternatives such as installment agreements or offers, and keeps your right to Tax Court review. You are entitled to only one CDP levy hearing for each tax period, so this letter is usually your one chance at a levy hearing with court review.