IRS Final Notice of Intent to Levy (LT11 Notice or Letter 1058)

Opening that envelope from the IRS to find an IRS Final Notice of Intent to Levy can make your heart sink. This isn’t just another reminder—it’s the IRS’s final warning before they can legally seize your assets, freeze your bank accounts, or garnish your wages. When this notice arrives, you have a narrow 30-day window to respond before the IRS can begin collection activities. Understanding what this document means and taking immediate action can save you from severe financial consequences and protect your rights.

Understanding the Notice of Intent to Levy

The Final Notice of Intent to Levy is authorized under Internal Revenue Code Section 6330, which require the IRS to notify you before seizing property and inform you of your right to a hearing. You can identify a legitimate notice by looking for “Final Notice. Notice of Intent to Levy and Notice of Your Right to a Hearing” in the letter heading.

Authentic notices arrive via certified mail and generally include either Letter 1058 or LT11 in the upper corner. The notice contains:

• The amount of unpaid taxes
• Accrued penalties and interest
• Your right to request a Collection Due Process (CDP) hearing
• The 30-day deadline for requesting this hearing
• Information about potential levy actions

This notice is different from previous communications like CP14 (initial unpaid tax notice), CP501 and CP503 (reminders), and CP504 (which threatens levy but doesn’t provide collection due process appeal rights). The typical sequence follows:

1. CP14 – Initial notice of unpaid taxes
2. CP501 – First reminder notice
3. CP503 – Second reminder notice
4. CP504 – Notice of Intent to Levy (may seize state tax refunds)
5. Letter 1058/LT11 – Final notice with appeal rights

This notice represents the final warning before the IRS can legally begin seizing assets.

The Critical 30-Day Window for Response

From the date you receive the notice, you have exactly 30 calendar days to request a Collection Due Process (CDP) hearing by filing Form 12153, “Request for a Collection Due Process or Equivalent Hearing.” This deadline isn’t flexible—the IRS counts from the day after you receive the notice, and only extends the deadline if the 30th day falls on a weekend or holiday.

If you miss this deadline, on day 31, the IRS gains legal authority to begin seizing your assets without further notice. While you may still request an “equivalent hearing” within one year, it won’t stop collection activities that have already begun.

The IRS rarely grants extensions except in extraordinary circumstances like military service in a combat zone, serious illness, or natural disasters. When submitting your hearing request, use certified mail with return receipt requested so you have proof of timely filing.

Your Legal Rights and Options

When facing a levy notice, you have several important protections:

• You can request a Collection Due Process hearing, which puts collection activities on hold while your case is reviewed. During this hearing, you can propose payment alternatives or challenge the levy’s procedural basis.
• In some cases, you can challenge the underlying tax liability itself—if you never received a statutory notice of deficiency or didn’t have a previous opportunity to dispute the tax.
• If you disagree with the CDP hearing outcome, you can appeal to the U.S. Tax Court for judicial review—an important safeguard against improper collection actions.
• For married couples, if the tax debt belongs primarily to your spouse, Innocent Spouse Relief might offer protection from responsibility for the debt.
• In extreme situations, bankruptcy might be worth considering, as it can sometimes discharge certain tax debts or create a court-supervised payment plan.

Throughout this process, you have the right to professional representation. In particularly complex cases, it can be beneficial to consult with a qualified tax levy lawyer who can help navigate the intricate IRS procedures while you focus on managing your finances.

Immediate Action Steps to Take

When you receive a Final Notice, it’s crucial to act promptly—take these steps right away:

1. Verify the notice’s authenticity by checking for the “Final Notice of Intent to Levy” language and Letter 1058 or LT11 designation.
2. Confirm the tax debt amount against your records. If you’ve already paid, gather proof immediately.
3. Organize all relevant tax and financial documents, including past returns and payment records.
4. File any missing tax returns—the IRS typically won’t consider alternatives until all required returns are submitted.The scope and lookback period for lengthy non-compliance should be discussed with a qualified professional.
5. Submit Form 12153 within the 30-day deadline, specifying which alternatives you want to discuss.
6. Consider making a partial payment to show good faith, but clearly note it’s not acceptance of the full amount if you dispute the debt.
7. Begin preparing financial disclosure forms (Form 433-A for individuals or 433-B for businesses).
8. Document all IRS communications with detailed notes including dates, times, and employee IDs.
9. Avoid common mistakes like sending your request to the wrong address or missing deadlines by even a single day.

Taking immediate action—even if imperfect—is more effective than a delayed response after the deadline has passed.

Resolution Options to Propose

You have several ways to potentially resolve your tax debt:

Installment Agreements let you pay over time. The IRS offers guaranteed agreements for debts under $10,000, streamlined agreements for debts under $50,000, and non-streamlined agreements for larger amounts.

Offer in Compromise (OIC) may allow you to settle for less than the full amount if you can demonstrate inability to pay, doubt about the liability, or that full payment would create economic hardship. Think of this as a financial life raft—not easily obtained, but potentially lifesaving.

Currently Not Collectible status temporarily halts collection if paying would leave you unable to meet basic living expenses. This doesn’t erase the debt but gives you breathing room to improve your finances.

Penalty abatement might reduce your overall debt if you can show reasonable cause for your failure to pay or file on time, such as serious illness or natural disasters.

Discharge of business assets may be available if you can show that seizing them would prevent you from generating income to pay the tax debt.

Each option has specific requirements that must be met. The right path depends on your unique financial situation and the nature of your tax debt.

When and Why to Hire a Tax Professional

While you might handle a simple tax notice yourself, a Final Notice of Intent to Levy often requires professional help, especially if:

• Your tax debt exceeds $10,000
• You have multiple years of unfiled returns
• You dispute the underlying liability
• You need a complex resolution like an Offer in Compromise
• You’re facing a business-related tax issue
• Previous resolution attempts have failed

Different professionals offer varying expertise: Tax attorneys provide legal representation and attorney-client privilege; CPAs and Enrolled Agents offer accounting expertise and some tax resolution representation. A skilled professional can analyze your situation, handle IRS communications, navigate complex procedures, apply their knowledge to negotiate better terms, and represent you at hearings. In many cases, consulting with a dedicated tax levy attorney can provide the focused expertise you need. While professional representation involves costs, the investment often leads to better outcomes and considerable peace of mind.

Consequences of Ignoring the Notice

Ignoring a Final Notice leads to severe consequences. After the 30-day period, the IRS can take action without further warning:

Bank account levies freeze your accounts for 21 days before transferring funds to the IRS, potentially causing bounced checks and missed bill payments.

Wage garnishments can claim a significant portion of your income, depending on exemptions and income levels, often exceeding the 25% maximum for most other creditors.

Asset seizures can include tax refunds, partial Social Security benefits, retirement accounts, and other payments. Note that some of these payments may already be subject to levy prior to the issuance of the Final Notice of Intent to Levy, reflecting the importance of early intervention.

Business asset seizures may include accounts receivable, equipment, and inventory, potentially forcing your business to close.

Property liens damage your credit score and make it difficult to sell assets or obtain financing.

Real property seizures occur when the IRS obtains a court order to auction your home or other real estate.

These enforcement actions can quickly transform a manageable tax issue into a serious financial crisis affecting multiple aspects of your life.

After You’ve Responded: Next Steps

After requesting a CDP hearing, your case will be assigned to a Settlement Officer from the IRS Independent Office of Appeals, who will schedule your hearing.

Before the hearing, prepare thoroughly by completing financial disclosure forms, gathering documentation of your finances, preparing a specific resolution proposal, and organizing any evidence for challenging the liability or procedures.

During the hearing, present your case clearly and factually. Afterward, you’ll receive a determination letter outlining the officer’s decision.

If your proposed resolution is accepted, follow through meticulously with all requirements. If rejected, you generally have 30 days to file a petition with the U.S. Tax Court.

Throughout this process, maintain detailed records of all communications and documents—they provide important evidence of your compliance efforts.

Preventing Future Collection Actions

Once you’ve resolved your immediate crisis, take these preventive steps:

• W-2 employees should review their withholding using the IRS Tax Withholding Estimator and adjust W-4 forms if necessary.
• Self-employed individuals should establish a system for quarterly estimated tax payments through the Electronic Federal Tax Payment System.
• Create a reliable recordkeeping system for tax documents. Digital solutions with secure backups can ensure you have documentation when needed.
• Consider working with a tax professional for annual preparation and planning, especially with complex finances or business ownership.
• Business owners should separate business and personal finances completely and consider using payroll services that automatically handle tax deposits.
• Set calendar reminders for important tax deadlines, including estimated payments and response deadlines for any IRS notices.
• Address tax notices immediately when received, rather than letting them escalate to the levy stage. Tax problems are like small leaks—much easier to fix when you address them early.

By implementing these measures, you can avoid the stress and financial damage that comes with advanced IRS collection actions and keep your financial house in good order.

Facing a Tax Problem? We’re Here to Help.

At Hughes Noff Tax Law, we know how overwhelming it can feel when the IRS or state tax authorities get involved. Whether you’re dealing with an IRS audit or tax dispute, international tax compliance, or tax debt resolution, we’re here to give you relief and bring down that anxiety. Let us deal with the federal government—so you don’t have to.

We approach every client with empathy and provide the advocacy, direction, service, and resolution they deserve. We have over 25 years of experience resolving complex tax controversy and understand the unique and sensitive nature of these matters. As both attorneys and CPAs, we understand the law and the numbers. Our clients appreciate the clarity and peace of mind we help restore—read their stories here.

Contact us today or call 410-694-7758 to schedule your consultation.