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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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How after one receives IRS Letter LT16 does collection

Customer Question

How long after one receives IRS Letter LT16 does collection really begin? Please explain what letters come next and how long I have with specificity.
Submitted: 1 year ago.
Category: Tax
Expert:  Megan C replied 1 year ago.

With form LT16 you're at the end of the rope and the IRS can take action 10 days after the date printed on the letter. You can call the number to work on options. In all seriousness if you just treat the IRS with respect and be honest about your situation they will work with you.

See the following:

Customer: replied 1 year ago.
What's the next letter or collection step, and how long does that take?
Expert:  Megan C replied 1 year ago.

The next step is that they take your funds. You have 10 days. You need to get representation or contact and make payment arrangements STAT.

Notices to levy can be sent at the expiration of that 10 day period. This is the last notice before it gets real.

Customer: replied 1 year ago.
"...LT-16 letters - while intimidating - are still fairly early in the collection process and let's us know that the collection process has begun. If you did nothing after getting these letters, you would probably receive a levy on bank accounts or wages in about 90 days. "
Expert:  Megan C replied 1 year ago.

You would be well advised to work on 1) getting an installment plan set up or 2) getting lending from a regular bank or 3) explaining to the IRS that you cannot pay. Doing nothing is not wise.

The collection time depends on how much the IRS knows about your finances, and how easy it is for them to attach on your assets.

Customer: replied 1 year ago.
I sent a check a couple of months ago, so I think they have an account. Whats the next specific notice with specific timeframe?
Expert:  Megan C replied 1 year ago.

The next notice would be an intent to levy -- and that can happen any time the IRS gets around to your case.

Seriously though -- start working on some resolution. Don't wait for it to get that far -- if you contact them now they can work with you. If you wait until later you can see your wages and bank accounts seized.

Customer: replied 1 year ago.
I already received a CP523. Then I received the Lt16. Is the next letter an intent to levy or final intent to levy and how else might I get more time? How many days from the next letter until things are seized?
Expert:  Megan C replied 1 year ago.

You get more time by working with the IRS, not by ignoring the situation. Get on the phone with them and tell them what steps you are taking to make sure you get the money to pay. You will get a notice of intent to levy and will have instructions on that form how to dispute if you don't agree with it. You can expect seizure within 30-45 days.

Customer: replied 1 year ago.
1)Is seizure 30-45 days from now or the notice of intent to levy?2) After the notice of intent to levy is there yet another notice sent to me called a "final notice of intent to levy"?3) How long after the LT16 until the notice of intent to levy?
Expert:  Megan C replied 1 year ago.

The seizure is within 30 days of the intent to levy -- and it depends on the IRS, the intent to levy can take place any time after that 10 day period has ended. I'd stop spending so much time worrying about how many days you have, and worry about how you are going to address this.

Customer: replied 1 year ago.
Another person on justanswer said that in this case there are no other notices. A Cp523 was issued, then an LT16. She then stated there is no other notice, they just do the Levy.
Expert:  Megan C replied 1 year ago.

Yes, they can send you notice or they can levy -- there's not much you can do about it. At the point where you are getting these notices you have essentially ignored the IRS.

Customer: replied 1 year ago.
See she is saying that there must be another notice after LT16.
Customer: replied 1 year ago.
Hello there. How are you? I am waiting on my last response.
Expert:  Megan C replied 1 year ago.

It's not worth it to continue back and forth with this --- the important thing is to deal with the tax issue. When you get more than one expert involved it becomes cumbersome. Please do not respond to me, I am placing your question back to the queue and someone else can answer.

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