Between stimulus check letters and late refund letters, the IRS sends out a wide variety of notices that can be sometimes difficult to understand and rarely welcome.
But there is a notice in particular, the LT11, which can become any taxpayer's nightmare, as it has the purpose of informing that your assets could be seized if you do not pay your back taxes.
Given this, if you are one of the people who received this notice, we tell you everything you need to know about what to do with it and what it means:
What is this notice about?
Generally, this letter is sent to those who have not paid back taxes to the IRS.
The letter usually has this text in English:
"Final Notice—Notice of Intent to Levy and Notice of Your Rights to a Hearing."
On the first page of the notice, the IRS writes what the notice is about, what would happen if the recipient does not respond, and what type of property could be seized.
What happens if I do not respond to this notice or do not pay?
In the notice, the IRS lists that it can place a lien on your wages or bank accounts up to the amount owed.
In addition, the agency may also file a Notice of Federal Tax Lien, which could affect your ability to obtain credit.
But if your tax debt is high, you could be subject to the Fixing America's Surface Transportation (FAST) Act legislation, which generally prohibits the Department of State from issuing or renewing a passport to a taxpayer with a high tax debt.
What type of property can the IRS tax?
Property can include wages and other income, bank accounts, business assets, personal assets (including your car and home), state tax refunds, and Social Security.
What can I do if I receive this letter?
According to LT11, the seizure actions can be stopped.
For example, you can look into certain collection alternatives, such as installment agreements and offers in compromise.
While such installment agreements and offers are pending, the IRS cannot take lien actions against you.
However, taxpayers can also request a hearing. These collection due process hearings are crucial for taxpayers. Taxpayers are entitled to a hearing with the IRS Independent Office of Appeals before garnishment action is taken.