The IRS Letter 11 is a final notice of intent to levy assets to collect unpaid tax debt. This letter is also known as a “Final Notice of Intent to Levy and Notice of Your Right to a Hearing.” The letter informs taxpayers that the IRS is prepared to levy their assets but provides them with an opportunity to request a Collection Due Process (CDP) hearing to dispute or resolve the debt before the levy occurs.
Key aspects of IRS Letter 11 include:
- Explanation of Intent to Levy
Letter 11 notifies the taxpayer that the IRS plans to seize assets, such as bank accounts, wages, or other property, to satisfy the tax debt. A levy allows the IRS to collect the owed amount directly, bypassing the need for taxpayer consent. - Right to Request a CDP Hearing
Taxpayers have 30 days from the date of the letter to request a CDP hearing. This hearing allows them to:- Dispute the levy: Challenge the IRS’s determination or the amount of the debt.
- Propose alternative payment options: Suggest an installment agreement or offer in compromise as an alternative to the levy.
- Steps for Payment or Appeal
Taxpayers who wish to avoid the levy may pay the debt in full, establish a payment plan, or apply for other relief options. If they request a CDP hearing, they must follow the procedures outlined in the letter. - Consequences of Ignoring the Notice
If the taxpayer does not respond within the specified timeframe, the IRS may proceed with the levy, which can impact finances, access to assets, and financial stability. - Importance to Tax Debt Resolution
Responding to IRS Letter 11 promptly is essential for taxpayers facing levy actions. By requesting a CDP hearing, taxpayers can protect their rights, explore alternative payment solutions, and prevent immediate asset seizure, which helps maintain financial stability.
Letter 11 is a critical communication from the IRS, serving as a last chance for taxpayers to resolve their debt before the IRS initiates asset levies.