A husband and wife called our office in a state of panic after receiving a certified letter from the IRS. The notice was an LT11, also known as a Final Notice of Intent to Levy, and they owed approximately $120,000. With the threat of wage garnishments or bank levies looming, they needed immediate guidance to protect their assets and understand their options.
The Problem
One of the first questions we asked was, “Did you receive the letter within the last 30 days?” Fortunately, they had, which meant there was still time to act and protect their rights. The couple was within a critical window to respond to the LT11, and without action, the IRS could begin enforced collection measures such as wage garnishments or bank levies.
Their financial situation added another layer of complexity. While they had a combined household income of approximately $12,000 per month, they also had substantial equity in their home and significant savings. Because of this, they were not eligible for an Offer in Compromise, limiting their available resolution options.
Without proper representation, they risked facing aggressive IRS collection efforts and potentially paying far more than they could realistically afford.
Our Solution
At Florida Tax Solvers, we understand how important timing is when dealing with IRS enforcement notices. In this case, immediate action was necessary to stop potential levy action and create a path toward resolution.
Requested a Collection Due Process (CDP) Hearing
We filed a request for a CDP Hearing within the required 30-day period. This immediately halted IRS levy action and move the case to the IRS Appeals Office, giving us the opportunity to negotiate on the clients’ behalf.
Taking the case to Appeals made a meaningful difference. The role of the Settlement Officer is to resolve cases, which often allows for more practical and workable outcomes compared to standard collections.
Prepared and submitted financial documentation
We worked closely with the clients to gather and organize their financial information and presented it to Appeals. This ensured the IRS had a clear and accurate understanding of their ability to pay.
Negotiated an affordable Installment Agreement
After reviewing their financial situation, we successfully negotiated an Installment Agreement of $500 per month, which is an amount that aligned with what they could realistically afford and was significantly lower than what the IRS initially pursued.
Developed a long-term resolution strategy
Although the clients were not eligible for an Offer in Compromise, we structured a plan around the IRS’s 10-year Statute of Limitations. Based on the agreed payment terms, the IRS would not be able to collect the full balance before the statute expired, allowing the clients to resolve their case while a significant portion of the debt expired over time.
The Results
By acting within the 30-day window and moving the case to Appeals, we were able to prevent any levy action and secure a manageable payment plan. The clients avoided immediate financial disruption and gained a clear path forward.
This case highlights how critical timing is when responding to IRS notices and how using the right procedural tools can significantly change the outcome. With the right guidance, even large tax debts can be resolved in a way that protects both your finances and your peace of mind.
