LT11 and Letter 1058: Final Notice Before IRS Levy

The LT11 (Letter 11) and Letter 1058 are the IRS's letter versions of a final notice of intent to levy. The IRS states plainly on its explainer page that it intends to seize your property or rights to property and that you must contact it immediately. Both letters also tell you of your right to a Collection Due Process hearing, and the time to request one is short.

What the letters say

The letters identify the tax periods and amount, say that the IRS has not received payment, and state its intent to levy. The IRS's explainer lists what a levy can reach: wages, bank accounts, business and personal assets (including a car or a home), Alaska Permanent Fund Dividends, state tax refunds, and Social Security benefits. A Notice of Federal Tax Lien may also be filed, and seriously delinquent tax debt can affect passport issuance or renewal.

A levy, unlike a lien, actually takes property. The IRS explains that a bank levy holds funds for 21 days before sending them to the IRS, which gives you a short window to act if one is served. See IRS liens and levies.

Your options

1. Pay the balance. Pay online, and check your Online Account for the current balance.
2. Pay what you can. Partial payments reduce future interest and penalties.
3. Request an installment agreement, if you are current on your filings. If you owe less than $50,000, the IRS says you may be able to apply through the Online Payment Agreement tool, which it describes as the fastest route. Otherwise call the number on the letter or mail Form 9465. See installment agreements.
4. Send proof of payment if you already paid in full or believe a payment was not credited. Use the address at the top of the letter.
5. Request a CDP hearing. File Form 12153. Include Form 433-A for individuals or 433-B for businesses if you propose a payment alternative. See collection due process hearing.
6. Call the number on the letter if you cannot pay. Individuals can also use IRS live chat during published hours; businesses should call the number on the letter.

What a CDP hearing can cover

According to the IRS: payment alternatives such as an installment agreement; whether the lien or levy is appropriate; spousal defenses; and the underlying tax, but only if you did not receive a notice of deficiency or otherwise have an earlier chance to dispute it. Where Appeals cannot consider the liability, other routes exist, including paying and claiming a refund, audit reconsideration with new information, or an offer in compromise based on doubt as to liability.

Publication 1660 says a timely request generally stops levy for the periods involved while the hearing is pending, and that you can petition the U.S. Tax Court if you disagree with Appeals' determination.

If you miss the deadline

You may request an equivalent hearing within one year of the date of the levy notice, but levy is not prohibited during it, the collection period is not suspended, and you cannot go to court. See CP90 and CP297.

Interest and penalties

Interest keeps running on the unpaid balance, and the failure-to-pay penalty rate rises after a notice of intent to levy. See failure-to-pay penalty and IRS interest on unpaid taxes.

Common mistakes

• Treating the letter as a negotiating invitation with no deadline.
• Calling to arrange a plan and assuming that stops the 30-day clock.
• Not updating your address with the IRS (Form 8822), so notices reach you late.

When to involve a CPA

This is the stage where professional help matters most. A CPA can file the hearing request, prepare financial statements, negotiate with collection, and request penalty relief. With a signed Form 2848, we can deal with the IRS directly.

How we can help

We can calendar the 30 days, prepare the Form 12153, and work toward an agreement that stops the levy. See our IRS representation services or contact us.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.