Final Notice of Intent to Levy (LT11, Letter 1058): Your 30 Days

The letter says "Final Notice" and "Notice of Intent to Levy and Notice of Your Right to a Hearing." It might be an LT11, or a Letter 1058 from a revenue officer. It probably came by certified mail. It means the IRS is preparing to take your bank account, your wages or other property.

It also hands you one of the most valuable rights in the tax system: a Collection Due Process hearing. Request it within 30 days and the IRS generally has to hold off on levies for those tax periods while an independent appeals officer reviews your case. Here is what to do.

What this notice is

Section 6330 of the Internal Revenue Code says the IRS cannot levy until it has notified you in writing of your right to a hearing. The notice must be given in person, left at your home or business, or sent by certified or registered mail to your last known address, at least 30 days before the first levy for that tax period. You get this notice once per tax period.

The IRS uses different letters for this notice depending on which part of the agency has your case. The Internal Revenue Manual (IRM 5.11.7) identifies the LT11 as issued by the Automated Collection System and Letter 1058 as issued by field collection, meaning a revenue officer. The automated federal payment program uses a CP90. Whatever the number, look for the words "Notice of Your Right to a Hearing."

How this differs from a CP504

A CP504 is usually the letter before this one, and the two are easy to confuse. The IRS manual (IRM 5.11.1) describes the CP504 as the notice of intent to levy required by Section 6331(d). It is not your Collection Due Process notice. After a CP504, Section 6330(f) still lets the IRS levy a state tax refund before offering a hearing, but for most other levies the IRS still needs to send the LT11 or Letter 1058 first. A Letter 1058 can serve as both notices at once.

Either notice has a cost if you do nothing. Under Section 6651(d), the failure-to-pay penalty rate rises from 0.5% to 1% per month beginning 10 days after a notice of intent to levy under Section 6331(d). See what to do about a CP504 if that is the letter you have.

Your 30 days, step by step

1. Find the date on the letter. Under Treasury Regulation 301.6330-1, you must submit a written request within the 30-day period that begins the day after the date of the notice. Count from the date printed on the letter, not the day you opened it.
2. Complete Form 12153. Under Treasury Regulation 301.6330-1, Form 12153 is included with the notice. Section 6330(b)(1) requires the request to be in writing and to state your grounds. Check the box for the issue you are raising and explain your reasons.
3. Send it to the address on the notice. The regulation requires the request to go to the IRS office and address shown on the notice. The timely mailing rules of Section 7502 apply when the request is properly addressed, so use certified mail with a receipt and keep a copy.
4. Think about the alternative you want. The hearing works best when you come in with a proposal, not just an objection. Gather your recent returns, pay stubs, bank statements and a list of monthly expenses.
5. File any missing returns. Unfiled returns can stand in the way of a payment plan or an offer in compromise.

What you can raise at the hearing

Under Section 6330(c), the hearing is held by the IRS Independent Office of Appeals, before an officer with no prior involvement in the unpaid tax. You can raise any relevant issue about the unpaid tax or the proposed levy, including:

• Collection alternatives, such as an installment agreement, an offer in compromise, a bond, or substituting other assets.
• Whether the levy is appropriate, for example because it would cause hardship or because another approach would work.
• Spousal defenses, such as innocent spouse relief.
• The underlying tax itself, but only if you did not receive a notice of deficiency for it and did not otherwise have an opportunity to dispute it.

The appeals officer must also verify that the IRS met every applicable legal and procedural requirement, and must weigh whether the proposed levy balances efficient collection against your legitimate concern that collection be no more intrusive than necessary.

The hearing is usually informal. Treasury Regulation 301.6330-1 explains that it can take place by phone, by correspondence or in person.

What happens while the hearing is pending

Under Section 6330(e)(1), a timely hearing request suspends the levy actions that are the subject of the hearing while the hearing and any appeals are pending. The ten-year collection statute is also suspended during that time. That pause is often the main benefit: it gives you time to put a real resolution in place without your bank account being frozen.

After the hearing, Appeals issues a Notice of Determination. If you disagree, Section 6330(d)(1) gives you 30 days to petition the United States Tax Court. The regulation adds that the court will consider only issues you properly raised at the hearing, so put everything on the table with Appeals.

There are exceptions. Under Section 6330(f), the IRS can levy first and offer a hearing afterward in jeopardy situations, for state tax refunds, for certain repeat employment tax cases and for federal contractors.

Timely hearing vs. equivalent hearing

	CDP hearing (timely)	Equivalent hearing (late)
When to request	Within 30 days, starting the day after the notice date	Within one year, starting the day after the notice date
Levy suspended?	Yes, under Section 6330(e)	Not required, decided case by case
Collection statute suspended?	Yes	No
Tax Court review?	Yes, petition within 30 days of the determination	Generally no
Issues considered	Same issues	Same issues

If you missed the 30 days, an equivalent hearing is still worth requesting. Treasury Regulation 301.6330-1 accepts a dated, signed written request in any form if it includes the required information, such as the tax type, the periods and your reasons for disagreeing. You just lose the automatic levy protection and the right to go to court.

What not to do

• Do not call the IRS and assume the call counts. The hearing request must be in writing.
• Do not file a request with frivolous arguments. Section 6330(g) lets the IRS disregard any portion of a request that raises positions it has identified as frivolous.
• Do not wait until day 29. Mail early, by certified mail, to the address on the notice.
• Do not treat the hearing as only a delay. Use the time to build a real resolution. The suspension ends when the hearing ends.
• Do not move money around once you get the notice. It can hurt your credibility with Appeals and does not solve the debt.

Getting help

The 30 days after a final notice are some of the most useful days in an IRS case. A well-prepared hearing request can stop levies and lead to an arrangement you can live with. If you have an LT11 or Letter 1058 on your desk, our office can review it and help you decide what to raise. Reach us through GetIRSHelp.com or call (813) 229-7100. For every other date that matters, see IRS deadlines you cannot miss, and if a levy has already hit your bank, read the 21-day bank levy hold.