An LT1058 is quite similar to an LT11 notice. These notices from the IRS give note of caution to the taxpayer who has unpaid tax liabilities. According to the letter, the IRS may choose to seize or levy your property or rights to property after a definite date if the tax sum is not paid. The notice also informs the taxpayer of their right to a Collection Due Process hearing.
If no action is taken or the taxpayer does not pay off the tax amount before the deadline shown on the form, the IRS may levy or seize property and assets, including:
- Wages and other income
- Bank accounts
- Business assets
- Personal assets (home and car inclusive), and
- Social security benefits
Letter 1058 from the IRS is your final notice for unpaid taxes. This letter is serious and should be treated as such. If you don’t take necessary actions within the duration of 30 days, the IRS has the right to levy or seize your assets.
Understanding Letter 1058
The greater part of letter 1058 explains the situation. The letter explains to you why the IRS is contacting you and what you need to do. It also provides a view at what happens if you can’t pay your tax debt.
The most significant part of the letter is at the bottom, where it indicates what you owe.
The Amount You Owe
On letter 1058, the amount you owe is presented in a table. The table indicates which tax return you filed. For most people, that’s 1040, and it notes the last date of the tax period in question.
The table also includes the balance from your last notice, penalties incurred since the last notice, and new interest charges. Lastly, it lists the total due. If you have submitted any payments since your last notice, they are included also.
How to Appeal Letter 1058
If you do not agree with the amounts listed in letter 1058, you have a legal right to appeal. To begin that process, complete Form 12153, request for a Collection Due Process or Equivalent Hearing.
You must send that form to the IRS within 30 days, or you forfeit the right to appeal. Note that the 30 days start on the date the letter was issued. They do not commence the day you received the letter. To assist you, the deadline should be noted on the letter.
How to Make Payment
If you have a full or partial payment, ensure you make a check or money order payable to the United States Treasury. Then, mail the payment to the address on the letter. Put your Social Security number or Employer Identification number on the memo line so that the IRS knows where to apply the payment.
The Risks of Ignoring Letter 1058
If you don’t respond to letter 1058, the IRS may decide to move forward with more serious collection activity. That includes seizing funds from bank accounts, levying personal assets (cars, automobiles, houses, etc), and garnishing wages.
The IRS may also issue a Notice of Federal Tax Lien. That lets creditors know that the IRS has the legal right to put a lien on your present or future assets. When a federal lien appears on your credit report, it’s virtually impossible to take out a loan.
Unable to Pay the Balance
If you can’t pay the balance, you should contact the IRS about making alternative plans. Otherwise, an accountant can assist you in setting up a payment arrangement or submit an offer in compromise.
Based on your situation, an accountant may be able to help you appeal the sum that is due, reverse penalties and late fees, or setup a payment plan. If you have snubbed every other notice from the IRS, this is the one you need to pay attention to—fill out the form at the top of the page to get help today.
Officers from the Internal Revenue Service (IRS) may give out a Letter 1058 – Final Notice of Intent to Levy to a taxpayer with an outstanding tax liability. The letter provides legal notice of the liability and a final chance to remedy the tax liability before the IRS will start to levy assets or put a lien on the property.
If you receive an LT1058 notice from the IRS, contact your reliable tax attorney as soon as possible.
Responding to an IRS LT1058 Notice
Evaluate the notice carefully after getting a notice from the IRS. You can also contact your reliable tax attorney to review the notice and let you know your options and how to move forward to ease the risk of the IRS seizing your property. Your options for responding to the LT 1058 include the following:
- Making an immediate payment in full,
- Making payment arrangements, or
- Requesting a collection due process hearing
There is usually a pay-by date on the notice but you should not wait until the last minute to take action. It can take some time to get through to the IRS or get the money together to make a payment. Contact your tax lawyer as soon as possible after receiving a tax notice of intent to levy.
COLLECTION DUE PROCESS HEARING
If you do not agree with the tax notice, you can always request a Collection Due Process hearing. This is done through filing an IRS form 12153. The form also asks for the basis to challenge the collection. Talk to your tax lawyer about how you can confront the collections through a collection due process hearing.
MAKE A PAYMENT IN FULL
If you do not have a different opinion on the tax assessment, you can make a payment in full by the due date. You can follow the instructions on the notice or contact the IRS to make a payment. You may also want to speak to your tax lawyer first to make sure you have a clear understanding of all your options and rights in challenging any tax assessment or penalties.