If you’ve received a letter titled “LT11” or “Letter 1058 — Final Notice of Intent to Levy and Notice of Your Right to a Hearing,” the IRS is no longer warning you — it’s preparing to take your property. This notice is the final legal step before the IRS begins enforced collection, which may include:
- Wage garnishment
- Bank account levies
- Seizure of assets or business property
Unlike earlier CP letters (CP14, CP501, CP503, CP504), the LT11/1058 gives you a final 30-day legal window to act before enforcement begins.
📘 Official IRS References:
What the LT11 / Letter 1058 Really Means?
The LT11 / Letter 1058 is the IRS’s most serious collection notice. It fulfills the government’s legal requirement under IRC §6330 to give you written notice and a right to appeal before seizing your property.
This means:
- The IRS has completed all prior notice stages (CP14 → CP501 → CP503 → CP504).
- The next step is active levy enforcement.
- You have 30 days from the date on the letter to act.
💡 Insight: The LT11 and 1058 are legally identical — the IRS uses both names depending on the type of taxpayer (individual or business). Both carry the same authority to levy.
CP504 vs. LT11 — What’s the Difference?
The CP504 is an initial Notice of Intent to Levy which is a warning, while the LT11 is the Final Notice of Intent to Levy which includes specific, time-sensitive appeal rights before asset seizure begins. The LT11 typically follows the CP504 in the IRS collection process.
| Notice | Purpose |
|---|---|
| CP504 | Warns of intent to levy state refund |
| ✅ LT11 / 1058 | Final legal notice to levy wages, bank accounts, property |
How the LT11 Fits Into the IRS Collection Timeline?
The IRS notice LT11 is the final notice in the collection timeline before the IRS begins seizing a taxpayer’s assets (a process known as a levy). It is issued after previous attempts to collect the debt have failed.
| Notice Type | Action Level |
|---|---|
| CP14 | Balance due |
| CP501 | Reminder |
| CP503 | Urgent notice |
| CP504 | Intent to levy state refund |
| LT11 / Letter 1058 | Final legal notice before full levy |
Your Legal Options After Receiving LT11
1️⃣ Request a Collection Due Process (CDP) Hearing
The most powerful legal response to an LT11 is to file Form 12153 — Request for a Collection Due Process or Equivalent Hearing within 30 days.
Filing Form 12153:
- Immediately halts all IRS collection activity.
- Transfers your case to the IRS Office of Appeals.
- Allows you to propose payment plans, hardship relief, or settlements.
💡 Tip: A tax attorney can present financials strategically to qualify you for relief programs like Offer in Compromise or Currently Not Collectible (CNC) status.
📘 Reference: Form 12153
2️⃣ Negotiate an Installment Agreement
If you can afford monthly payments, you can prevent levy by entering into a formal Installment Agreement.
💡 Insight: Legal representation ensures your payment proposal meets IRS standards, preventing rejection or further enforcement.
📘 Reference: Payment Plans / Installment Agreements
3️⃣ Submit an Offer in Compromise
The Offer in Compromise allows qualifying taxpayers to settle tax debt for less than they owe if full payment would cause hardship.
💡 Note: Filing an OIC freezes IRS collections while under review — a crucial safeguard once an LT11 has been issued.
📘 Reference: IRS Offer in Compromise Program
4️⃣ Request “Currently Not Collectible” (CNC) Status
If you can’t pay due to financial hardship, you may qualify for CNC.
What CNC Does:
- Stops IRS levies and garnishments
- Suspends collection activity
- Keeps you compliant while preserving assets
💡 Tip: CNC is often a short-term relief tool used strategically until the 10-year Collection Statute Expiration Date (CSED) expires.
📘 Reference: “Currently Not Collectible” (CNC) Status
5️⃣ Request Penalty Abatement
If your balance has grown due to penalties, attorneys can request abatement based on:
- First-time penalty relief
- Reasonable cause (illness, natural disaster, reliance on tax professional)
Consequences of Ignoring LT11
If you fail to respond within 30 days:
| Enforcement Type | What Happens | Your Risk |
|---|---|---|
| Wage Levy | Employer must send part of your paycheck to IRS | Major income loss |
| Bank Levy | IRS freezes accounts for 21 days, then withdraws | Loss of savings, cash flow |
| Federal Tax Lien | Recorded claim on property | Damaged credit, public record |
| Asset Seizure | Vehicles, business, or real estate | Severe financial loss |
Why Hiring a Tax Attorney for LT11 or Letter 1058 Notices Matters?
A tax attorney matters if you received a LT11 or Letter 1058.
| Attorney Action | Result |
|---|---|
| File Form 12153 to stop levy | Enforcement paused |
| File Equivalent Hearing or CNC | Collection halted |
| Negotiate release with IRS ACS | Income restored |
| File appeal or hardship claim | Property protected |
| File OIC or Installment Plan | Debt reduced or resolved |
📘 Reference: Form 2848 – Power of Attorney
The LT11 Letter Is Your Final Chance — Use It Wisely
When you receive an IRS LT11 or Letter 1058, time is critical. You have a 30-day legal window to stop the IRS from seizing your income, freezing accounts, or selling assets.
A skilled tax attorney can:
- File immediate appeals to stop enforcement
- Negotiate payment plans or settlements
- Protect your income, business, and property
- Prevent long-term financial damage
Contact Pelham PLLC today for a confidential IRS levy defense consultation. Our attorneys will:
- Review your LT11 notice and IRS transcripts
- File timely appeals and requests for hearing
- Protect your assets and negotiate fair resolutions
- Restore your peace of mind and compliance
Don’t wait for the IRS to act first — take control of your financial future now.
FAQs
Is LT11 the same as CP504?
No. CP504 only allows levy of state tax refunds. LT11 / 1058 gives the IRS full levy power on wages, accounts, and property.
Can I stop the levy once LT11 is issued?
Yes — by filing Form 12153 within 30 days or entering an installment agreement.
What if I missed the 30-day deadline?
You can request an Equivalent Hearing, CNC status, or negotiate directly through your attorney.
Can I handle LT11 without an attorney?
Technically yes, but given the legal complexity, most taxpayers risk losing appeal rights or triggering faster enforcement without representation.
