If you live or operate a business in Washington, receiving IRS Notice LT11 or Letter 1058 means the IRS intends to collect unpaid federal taxes through a levy, or the legal seizure of your money or property. This is generally its final warning before it can seize bank funds, garnish wages or collect payments your customers owe you (accounts receivable).
Request a hearing before the 30-day deadline
A Collection Due Process (CDP) hearing lets you challenge the proposed levy or request other payment options. To preserve your hearing rights:
- Check the deadline: You generally have 30 days from when the IRS mails or delivers your notice. Check the deadline stated in your letter and confirm any discrepancy with the IRS.
- Complete Form 12153: Explain your objections to the levy or identify the alternatives you want considered.
- Submit your request: Send the form and a copy of your IRS notice to the hearing-request address listed on the letter. Consider using USPS Certified Mail with Return Receipt Requested and keep copies for your records.
A timely CDP hearing request stops the proposed levy for the tax periods covered by your notice during the hearing and any court proceedings.
Certain exceptions apply, including jeopardy levies and levies involving state tax refunds, some employment taxes or federal contractors. This gives you time to discuss alternatives but does not erase your debt or prevent every collection measure.
If you miss the deadline, you can generally request an equivalent hearing, a similar IRS review, within one year. However, it does not automatically stop collection or provide the same right to appeal to the U.S. Tax Court.
Explore ways to resolve your tax debt
If you cannot pay in full, consider these alternatives:
- Installment agreement: Request monthly payments based on your financial circumstances and IRS requirements.
- Currently not collectible status: Ask the IRS to temporarily delay collection if paying would prevent you from meeting basic living expenses. Interest and penalties may continue.
- Offer in compromise: Propose settling your debt for less than the full balance, subject to IRS approval.
The IRS may request Form 433-A, 433-B or 433-F, along with records of your expenses, income, assets and debts.
Your options depend on acting in time
If you cannot pay your tax debt in full, an installment agreement or currently not collectible status may offer a way forward. Reviewing your notice and gathering financial records can help you prepare for the IRS hearing process. Before the 30-day deadline passes, a tax attorney who handles federal tax levies can help you evaluate your options and prepare your CDP request.