IRS Letter 11 Survival Guide: Your Step-by-Step Action Plan

What Is IRS Letter 11?

IRS Letter 11 (also known as LT11 or “Final Notice of Intent to Levy and Notice of Your Right to a Hearing”) is the IRS’s last warning before they begin seizing your property and assets to collect unpaid taxes. This is not a bill or a request for payment—it is a legal notice that the IRS intends to take immediate action against your wages, bank accounts, and personal property.

Unlike other IRS notices, Letter 11 means the IRS has exhausted their normal collection procedures and is now prepared to use their most aggressive enforcement powers. Once this 30-day notice period expires, the IRS can legally garnish your wages, freeze your bank accounts, and seize your property without further warning.

Why You Received This Letter

You received IRS Letter 11 because:

You have overdue tax debt that remains unpaid
The IRS previously sent you multiple notices requesting payment (CP501, CP503, CP504)
You did not respond to previous notices or make payment arrangements
The IRS has now escalated to their final collection step before seizing assets
Your account has been referred to the IRS Collection Division for enforcement action

CRITICAL: This letter gives you exactly 30 days from the date it was issued to respond or request a hearing. Missing this deadline will result in immediate collection actions.

The Serious Consequences of Ignoring This Letter

If you ignore IRS Letter 11 or fail to respond within 30 days, the IRS will immediately begin aggressive collection actions:

Wage Garnishment: The IRS can seize a large portion of your paycheck—often leaving you with only basic living allowances.
Bank Account Levy: Your bank accounts can be frozen immediately, and after 21 days, all funds will be sent to the IRS.
Property Seizure: The IRS can seize and sell your home, car, business assets, and other valuable property to satisfy the tax debt.
Federal Tax Lien: A public record that damages your credit score and makes it difficult to obtain new credit or loans.
Passport Revocation: If your tax debt exceeds $62,000, the IRS can revoke or deny your passport.
Mounting Penalties and Interest: Debt grows at 0.5% per month plus daily compounding interest.
Loss of Future Tax Refunds: Future federal and state tax refunds will be seized and applied to your debt.

Your Legal Rights

Despite the serious nature of Letter 11, you still have important legal rights and protections:

30-Day Response Period: You have exactly 30 days from the notice date to respond, make payment arrangements, or request a hearing.
Right to a Collection Due Process (CDP) Hearing: You can request an independent hearing to dispute the debt or propose alternatives.
Right to Dispute the Amount: If you believe the tax assessment is incorrect, you can challenge the amount owed.
Right to Propose Payment Alternatives: You can request installment plans, an offer in compromise, or currently not collectible status based on your financial situation.

Available Solutions to Stop the IRS

Pay in Full

If you can access funds through savings, loans, or asset sales, paying the full amount (including penalties and interest) immediately stops all collection actions.

Installment Agreement (Payment Plan)

Allows you to pay the balance over time. If you owe less than $50,000, you can apply online at IRS.gov. The IRS halts collection actions while payments are made.

Offer in Compromise

Settle your debt for less than you owe. The IRS may accept a reduced settlement if you can prove financial hardship.

Currently Not Collectible (CNC) Status

If you can’t afford basic living expenses, the IRS may temporarily pause collection activities.

Collection Due Process Hearing

File Form 12153 within 30 days to appeal and negotiate. This stops collection actions while your case is reviewed.

What Property Can the IRS Seize?

The IRS has broad authority to seize almost any asset or income source, including:

Wages and income
Bank accounts
Business assets
Personal property (vehicles, real estate, jewelry)
Social Security benefits (up to 15%)
Tax refunds
Retirement account distributions

Immediate Action Steps — What You Must Do Now

Time is critical. Follow these steps immediately:

Don’t ignore this letter. The 30-day deadline is absolute.
Read the notice carefully and note the exact amount owed and date.
Verify the debt amount via your IRS Online Account.
Gather financial documents (pay stubs, bank statements, bills, expenses).
Contact the IRS immediately to discuss payment options.
Explore payment solutions such as an installment agreement or offer in compromise.
Consider professional help from a tax attorney or enrolled agent.

Timeline: What Happens Next

Days	Action Steps
1–5	Review notice, verify debt, gather documents
6–15	Contact IRS, explore options, consult with a professional
16–25	Submit payment plan, CDP hearing request (Form 12153), or payment
30	Final deadline to respond
After 30	IRS can garnish wages, levy bank accounts, or seize property

Warning Signs You Need Professional Help

You should seek assistance if:

You owe more than $10,000 in back taxes
You can’t afford to pay the debt in full
You disagree with the amount owed
You’re facing wage garnishment or a bank levy
You need to submit an Offer in Compromise
You’re overwhelmed by the IRS process or deadlines

Take Action Today — Don’t Wait

Every day you wait increases your risk of losing wages, bank accounts, and property. The IRS is serious about collecting this debt, but you have options—if you act within 30 days. Waiting limits your choices and can lead to severe financial harm.

Professional tax resolution specialists understand IRS procedures, can protect your rights, and often negotiate better outcomes. The cost of professional help is typically far less than the financial damage caused by IRS enforcement actions.

IRS Letter 11 Action Checklist

Immediate Actions (Days 1–7)

Locate your IRS Letter 11 notice and note the issue date.
Calculate your 30-day deadline.
Read the entire notice carefully.
Verify the debt amount online.
Gather tax and financial documents.

Contact & Communication (Days 8–15)

Call the IRS number listed on your notice.
Request a detailed breakdown of the debt.
Document all calls and correspondence.

Evaluate Your Options (Days 8–20)

Determine if you can pay in full.
Explore installment agreement or offer in compromise eligibility.
Consider requesting currently not collectible status.
Consult a tax professional.

Take Action (Days 15–30)

Submit payment or apply for a payment plan.
File Form 12153 for a CDP hearing if needed.
Confirm the IRS received your response.

Ongoing Protection

Keep copies of all documents.
Monitor your IRS account for updates.
Stay compliant with all future filings and payments.
Respond promptly to additional IRS notices.

Important Deadlines to Remember

30-day deadline to respond or request CDP hearing
First payment due date (if payment plan approved)
CDP hearing request deadline

Get Help With IRS Letter 11

If you’ve received IRS Letter 11, time is not on your side. The IRS will begin levying wages and bank accounts if you don’t respond within 30 days. Whether you need help requesting a Collection Due Process hearing, negotiating a payment plan, or exploring an offer in compromise, professional guidance is essential.

The Law Offices of Stephen B. Kass, P.C. can help you understand your options and represent you before the IRS to stop levies and protect your assets. Our team has extensive experience resolving complex IRS tax matters and can help you achieve the best possible outcome.

Contact us today to schedule a consultation and discuss your case. Acting quickly can make the difference between resolving your tax issue and facing serious enforcement actions.