IRS Letter 1058: Intent to Levy Final Notice and Right to Hearing

IRS Letter 1058: Intent to Levy Final Notice and Right to Hearing

What Does IRS Letter 1058 Mean?

When a taxpayer receives Letter 1058 from the IRS this means they owe back taxes and have yet to make payments. Consequently, the IRS now intends to seize the person’s assets and/or rights to their assets if they do not pay as soon as possible.

Essentially, Letter 1058 should be viewed as a final warning from the IRS for unpaid back taxes before they issue a levy.

Common types of assets seized by the IRS for nonpayment of back taxes include wages, bank accounts, retirement funds, real estate, and vehicles. The IRS could also place a tax lien on future assets if the amount of current assets is insufficient to pay off the debt.

Is Letter 1058 the Same as LT11 Notice? Will the IRS Send Both Before a Levy?

An LT11 Notice and Letter 1058 both convey the same information and are intended to inform a delinquent taxpayer that the IRS plans to levy their assets. Although Letter 1058 contains slightly more information than LT11, they are essentially the same warning to delinquent taxpayers.

You do not necessarily have to receive both before the IRS starts a levy.

What Can the IRS Levy or Garnish After Sending Letter 1058?

By the time a taxpayer receives Letter 1058 or LT11, they should have heard from the IRS several times about nonpayment of back taxes via balance due notices in the mail.

Unless you respond to the IRS after receiving either of these letters within 30 days, the IRS can file paperwork to garnish your wages, seize bank accounts (checking, savings), levy business and personal real estate property, and even garnish some, but not all, of your monthly Social Security benefits.

In addition, owing more than $50,000 could result in having your passport revoked.

What Payment Options Do I Have to Avoid a Levy After Receiving Letter 1058?

When a taxpayer receives either a 1058 or an LT11, they have three options to avoid having their assets seized:

  • Pay off the tax debt in full.
  • Inform the IRS you cannot pay the balance in full and would like to enter into a payment agreement. This can include a basic monthly payment or installment agreement, as well as an Offer in Compromise.
  • Disagree with the IRS about what you owe and file an appeal using Form 12153 to request a CDP hearing.

What Happens If I Ignore Letter 1058 and Don’t Pay My Tax Debt?

Ignoring Letter 1058 or LT11 simply gives the IRS the legal ability to seize assets immediately and garnish the wages of the person who owes back taxes. The IRS is not mandated to send any additional warning letters after sending a 1058 or an LT11. They can and will start taking items that can be used to pay off a back tax debt.

How Long Do I Have to Respond to Letter 1058?

Unless you contact the IRS within 30 days, the IRS will likely begin seizing your property and/or levying your income. In some cases, the final date to respond may be more or less than 30 days. The last day a taxpayer has to pay in full, make payment arrangements, or appeal can be found on the left side of a 1058 or LT11.

Can I Appeal Letter 1058 From the IRS and the Tax Balance Due?

Yes, but the appeal Form 12153 must be mailed to the IRS within 30 days of receiving 1058. In other words, the appeal form must be postmarked before the 30-day period has expired.

Also be aware that the IRS goes by the date they issued Letter 1058 or LT11, and not the day the taxpayer received the form as certified mail.

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