Responding to a Final Notice: Your Next Steps

Quick summary

A Final Notice from the IRS is serious but not always irreversible. If you act promptly you can often stop a levy, arrange a payment plan, or negotiate other relief. In my practice I’ve found that a calm, documented response within the 30-day window preserves the most options and prevents emergency collection steps.

What the Final Notice means

• The IRS label for this notice is commonly “Notice of Intent to Levy — Notice of Your Right to a Hearing” (examples include LT11 or CP90/CP297 variations). It tells you the IRS intends to levy your property or rights to property (bank accounts, wages, business assets) to collect a tax debt. (See IRS guidance on levies and your rights: https://www.irs.gov/individuals/if-you-get-a-notice-of-intent-to-levy and https://www.irs.gov/appeals/collection-due-process-rights)
• The notice gives you a limited period (generally 30 days from the date on the notice) to request a Collection Due Process (CDP) hearing with the IRS Office of Appeals. A timely CDP request will usually prevent a levy while your appeal is pending.

Step-by-step actions to take now

1. Read the notice immediately and note the date. Don’t ignore it. The 30-day timeline matters.

2. Verify accuracy:

• Confirm the tax year and type of tax (income, payroll, trust fund recovery, etc.).
• Check the amount — does it match your records, including payments and refunds?
• Look for attached account summaries or contact phone numbers; do not call phone numbers in emails—use official IRS pages to find contact numbers. (IRS: Understanding notices: https://www.irs.gov/individuals/understanding-your-irs-notice)

1. Preserve proof and create a case folder:

• Make dated copies or scans of the notice and any supporting documents.
• Write down the date and time of any calls and the name/ID of IRS staff you speak with.

1. Decide how to respond (you can combine options):

• Request a Collection Due Process hearing (CDP). This is usually the best immediate move to stop a levy; request it in writing or using the instructions on the notice within the 30 days. (IRS CDP page: https://www.irs.gov/appeals/collection-due-process-rights)
• Propose an Installment Agreement — if you can pay over time. You can apply online for certain agreements or submit required financial forms (Form 433‑F or 433‑A). (IRS online payment agreement info: https://www.irs.gov/payments/online-payment-agreement-application)
• Apply for an Offer in Compromise (OIC) if you qualify to settle for less than owed — this requires Form 656 and a detailed financial package (Form 433‑A (OIC) or 433‑B (OIC)). (IRS OIC page: https://www.irs.gov/payments/offer-in-compromise)
• Request Currently Not Collectible (CNC) status if you have no ability to pay; this temporarily halts collection but interest and penalties continue to accrue.
• Request a levy release for financial hardship — if the levy causes immediate economic hardship, the IRS can release it; document hardship carefully.

1. If you prefer professional help

• Engage a tax professional (CPA, enrolled agent, tax attorney) immediately. In my 15 years representing taxpayers, early professional involvement usually preserves negotiation leverage and reduces mistakes on financial disclosures.

1. Follow through and confirm in writing:

• Send certified mail where applicable and keep delivery receipts.
• If you file for CDP or OIC, keep proof of filing and note any case or notice numbers.

Documents and information to gather

• Recent tax returns for years in question
• Bank statements (3–6 months) and recent account balances
• Pay stubs and proof of income
• Monthly expense list (rent/mortgage, utilities, food, medical, child support)
• Property deeds, vehicle titles, retirement account statements
• Completed financial forms the IRS may request (Form 433‑F, 433‑A, or OIC versions)

Pro tip from practice: prepare a clean, concise monthly budget. The IRS reviewer wants accurate, verifiable numbers — overstating expenses or hiding assets undermines credibility.

Common response options explained

• Collection Due Process (CDP) hearing

• Purpose: Stop the levy and let Appeals review whether the levy is appropriate or to consider collection alternatives.

• Deadline: Usually 30 days from the notice date. A timely CDP request generally prevents levies while Appeals considers the case. (IRS: https://www.irs.gov/appeals/collection-due-process-rights)

• Installment Agreement

• Types: Streamlined (for smaller balances), standard, partial-pay. Terms depend on balance, ability to pay, and whether you apply online. (See: Installment Agreements: Types and how to apply: https://finhelp.io/glossary/installment-agreements-types-costs-and-how-to-apply/ and IRS: https://www.irs.gov/payments/online-payment-agreement-application)

• Offer in Compromise (OIC)

• When it fits: If you cannot pay the full amount and settlement reflects your reasonable collection potential.

• Requirements: Detailed financial disclosures (Form 433‑A OIC), application fee (may be waived in low-income cases), and supporting documentation. Processing takes months. (IRS OIC: https://www.irs.gov/payments/offer-in-compromise)

• For help building an OIC package: see internal guides like “Filing an Offer in Compromise: Eligibility, Process, and Tips” and “Calculating Reasonable Collection Potential for an Offer in Compromise: A Walkthrough.”

• Currently Not Collectible (CNC)

• The IRS suspends collection temporarily if you have no ability to pay. The account remains active; penalties and interest continue.

• Levy release for hardship and lien considerations

• The IRS may release a levy if it creates economic hardship. Separately, the IRS may file a Notice of Federal Tax Lien to secure its claim; if you spot a lien filing, address it quickly with Appeals or via lien withdrawal rules.

What the IRS cannot do immediately

• If you timely request an Appeals CDP hearing, the IRS generally won’t levy while the hearing is pending.
• The IRS will not arrest or deport you for tax debt. Scammers use those threats; verify communications against official IRS pages. (Consumer tip: scammers often impersonate the IRS—see Consumer Finance or IRS scam pages.)

Mistakes to avoid

• Missing the 30-day deadline to request a CDP hearing.
• Sending a partial payment or making a payment arrangement directly to a caller you don’t verify.
• Overstating living expenses or submitting incomplete financial documentation.
• Waiting until a bank levy or wage garnishment is already in place — once assets are seized it becomes harder to recover funds.

After you respond: follow-up checklist

• Confirm receipt of your CDP request, OIC, or installment application.
• Track case numbers and Appeals contacts.
• If you negotiated an agreement, get the terms in writing and keep a copy of each payment made.
• If the levy occurred before you acted, request a levy release immediately and seek an Appeals hearing or emergency relief.

Where to get reliable help and official information

• IRS: If You Get a Notice of Intent to Levy (includes steps and sample notices) — https://www.irs.gov/individuals/if-you-get-a-notice-of-intent-to-levy
• IRS: Collection Due Process rights and how to request a hearing — https://www.irs.gov/appeals/collection-due-process-rights
• IRS: Offer in Compromise overview and forms — https://www.irs.gov/payments/offer-in-compromise
• FinHelp resources (practical how-tos):
• How to stop an IRS levy in practical steps: https://finhelp.io/glossary/how-to-stop-an-irs-levy-in-10-practical-steps/
• Installment agreements overview: https://finhelp.io/glossary/installment-agreements-types-costs-and-how-to-apply/
• Filing an Offer in Compromise: https://finhelp.io/glossary/filing-an-offer-in-compromise-eligibility-process-and-tips/

Example (real-world pattern)

In my practice I assisted a sole proprietor who received an LT11 Final Notice after two years of missed payroll deposits. We filed a timely CDP request within 20 days, submitted Form 433‑F and a proposed installment agreement, and negotiated a temporary hold on levies while Appeals reviewed our terms. That timeline gave the business owner breathing room to stabilize cash flow and avoid a bank levy that would have shut operations down.

Final notes and professional disclaimer

A Final Notice is urgent but manageable. The most important actions are: read the notice carefully, preserve documentation, request a Collection Due Process hearing within 30 days if appropriate, and consider installment agreements, offers in compromise, or CNC status as your financial situation dictates. Early contact with a qualified tax practitioner improves outcomes.

This article is educational and does not replace personalized tax, legal, or financial advice. For case-specific guidance, consult a licensed tax pro (CPA, enrolled agent, or tax attorney). For official IRS procedures and forms, reference the IRS pages cited above.