LT11 / Letter 1058: The Final Notice Before the IRS Levies

It came by certified mail. That detail matters. The IRS sends very little correspondence that way, and when it does, it is usually because the law requires it.

What is IRS Notice LT11 or Letter 1058?

LT11 and Letter 1058 are the same document under two labels: the Final Notice of Intent to Levy and Notice of Your Right to a Hearing. The IRS issues it when a balance remains unpaid after earlier notices, and its legal job is to start the 30-day window that must pass before the agency can levy.

The earlier letters were reminders. This one is different in kind. Internal Revenue Code section 6331(d) requires the IRS to deliver this notice in person, leave it at your home or usual place of business, or send it by certified or registered mail with return receipt requested to your last known address. That requirement is why it arrived the way it did.

The Internal Revenue Manual (IRM 5.11.1) tells revenue officers to wait an extra 15 days after the 30 expire, in case a taxpayer mailed a hearing request on day 30. That is an internal cushion, not an extension of your deadline. Planning around it is a bad idea.

How many days do I have to respond to an LT11?

Thirty days from receipt. IRS Publication 1660 states that the hearing request must be postmarked “on or before the 30th day after the date of the levy notice.”

The postmark controls, not the day someone at the IRS opens the envelope. If the notice is dated September 3, day 30 falls on October 3, and a request mailed that day is timely even if it is not processed for two more weeks. Keep the certified mail receipt. That slip is your proof of timeliness.

What is a Collection Due Process hearing and how do I request one?

It is a hearing before the IRS Independent Office of Appeals, created by Code section 6330. You request it on Form 12153, Request for a Collection Due Process or Equivalent Hearing, sent to the address printed on the levy notice itself rather than to a general IRS address.

What the filing does is as significant as the hearing. Publication 1660 explains that unless an exception under section 6330(f) applies, levy action is not permitted for the tax and periods at issue during the 30 days after the levy notice and during a timely requested CDP hearing process. In practical terms, filing Form 12153 on time stops levy action while Appeals reviews the case.

At the hearing you can raise collection alternatives, including an installment agreement or an offer in compromise, along with subordination, discharge or withdrawal of a federal tax lien and appropriate spousal defenses. If you disagree with the Appeals determination, the same publication notes that you may seek judicial review by petitioning the United States Tax Court within the period stated in the determination letter.

What happens if I miss the 30-day deadline?

You lose the CDP hearing and the levy suspension that comes with it. What remains is a lesser option: the equivalent hearing.

Publication 1660 allows a request for an equivalent hearing when the CDP request was not timely, so long as it is postmarked within one year after the date of the levy notice. You use the same Form 12153. The distinction is real, though. An equivalent hearing does not suspend levy action by law, and it does not carry the right to petition Tax Court. It is a review, not a pause.

What can the IRS levy after this notice?

The IRS page for the LT11 lists property subject to levy: wages and other income, bank accounts, business assets, personal assets including your car and home, Alaska Permanent Fund Dividends and state tax refunds, and Social Security benefits.

A bank levy does not drain the account on contact. The IRS explains that funds in the account are held and sent to the IRS after 21 days. That holding period exists so identity errors can be corrected or the balance addressed before money moves.

Publication 594 identifies property that is exempt: unemployment benefits, certain annuity and pension benefits, certain service-connected disability payments, worker’s compensation, certain public assistance payments, necessary schoolbooks and clothing, undelivered mail, and certain amounts of fuel, provisions, furniture and household personal effects, plus certain amounts of books and tools used in a trade, business or profession.

Two terms get mixed up constantly, so it is worth separating them. Publication 594 describes a lien as a legal claim against all your current and future property. A levy is the legal seizure that actually takes your property or your right to property. One stakes a claim. The other collects.

How is the LT11 different from Notice CP504?

The CP504 is also titled a notice of intent to levy, issued under section 6331(d), which is where the confusion starts. Its immediate reach is narrower.

After a CP504, the IRS can take your state income tax refund. Beyond that, the CP504B page says it plainly: “In most other situations, before we levy on your property or rights to property, we’ll send you a notice that gives you the opportunity to request a Collection Due Process hearing.” The exceptions the IRS names are the Disqualified Employment Tax Levy and the Federal Contractor Levy.

That follow-up notice is the LT11 or Letter 1058. Put simply, the CP504 warns you and can reach your state refund. The LT11 is what clears the way for a levy on your bank account and your paycheck, and it is the only one of the two that opens the 30-day CDP window. If a CP504 arrived last year and an LT11 arrived this week, that is not the same letter sent again. It is the next stage.

How TruePath Resolution works

At TruePath Resolution, we review the notice you received and confirm which notice it is and what date it carries, since the clock runs from that date. We pull your IRS account transcript, verify the balance and the periods involved, and walk you through the options that fit your situation along with the deadline attached to each one. We handle IRS, FTB, CDTFA and EDD matters. Se habla español. You can learn more at truepathresolution.com.

This article is for informational purposes only and does not constitute legal, tax or financial advice. TruePath Resolution is not affiliated with the Internal Revenue Service.