IRS LT 1058: Final Notice of Intent to Levy – What to Do
Letter 1058 from the IRS is your final notice of intent to levy for unpaid taxes. This letter is serious, and if you don’t take action within 30 days, the IRS has the right to levy or seize your assets. This is generally issued by Revenue Officers, whereby the IRS ACS issues LT11.
Understanding Letter 1058
The majority of letter 1058 explains the situation. The letter tells you why the IRS is contacting you and what you need to do. It also provides a look at what happens if you can’t pay your taxes owed.
The most important part of the letter is at the bottom, where it shows what you owe.
The Amount You Owe
In letter 1058, the amount you owe is presented in a table. The table shows 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. Finally, it lists the total due. If you have submitted any payments since your last notice, they are included as well.
How To Appeal Letter 1058
If you don’t agree with the amounts listed in letter 1058, you have a legal right to appeal. To start that process, complete Form 12153, Request for a Collection Due Process or Equivalent Hearing.
You must send the IRS that form 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 start the day you received the letter. To help you, the deadline should be noted in the letter.
How to Make Payment
If you have a full or partial payment, 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 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 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 tells creditors that the IRS has the legal right to put a lien on your current 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
Depending on your situation, a tax professional may be able to help you appeal the amount that is due, reverse penalties and late fees, or set up a payment plan. If you have ignored 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.
Stopping a Levy
If the IRS has already started to levy your assets there are a variety of ways that the levy can be stopped even after it has started. Every person has a unique situation and there are methods to stop a levy depending upon your situation. For more details on stopping a tax levy after it has already started, please refer to this guide on stopping or releasing a tax levy. To connect with a tax professional who has experience preventing tax levies, visit these search results.