I represent taxpayers in Bucks and Montgomery county PA who have tax issues. This week we will discuss LT11.
What is LT11 (IRS notice Letter 11) ?
LT11 is an IRS notice you cannot ignore. LT11 says to the taxpayer that the IRS is going to levy your bank account or wages. LT11 usually arrives via certified mail. (Most very important notices from the IRS arrive via cerified mail).
Inside LT11 is your Appeals Rights! It is critial that you or your representative files the CDP (Collection Due Process) request within 30 days from the date of the letter. In doing so, we can stop any enforced collection action against them (i.e. levy) and preserve the taxpayers right to go to Appeals to work out a resolution.
What does the IRS really want from their notices? Communication from the taxpayer or taxpayer's representative. The IRS does not want your sob story, but want information on how you plan to resolve the tax issue.
How to avoid an IRS levy? The first step is to contact the IRS and see what it needs. Step 2 is to get the taxpayer incompliance, which means file all of your returns that are due and begin making estimated payments for the current year. The third step is to requestion a collection alternative based upon the taxpayer's financial situation. Finally, the last step is provide the IRS the documentation needed to confirm the taxpayer's financial situation.
If the taxpayer has already been levied, there are steps to take to deal with the situation. Again, the key is communicating with the IRS and providing an acceptable collection alternative. The IRS does not want to levy. It essentially wants communication from the taxpayer.
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