If You Receive a Letter 1058 From IRS, What Steps to Take

If You Receive a Letter 1058 From IRS, What Steps to Take

Letter 1058/LT11 Notice

It seems as if the IRS has a “CP Notice” or “Letter” for nearly any type of tax situation that may arise. For example, the CP15 Notice is used to inform the Taxpayer that a Penalty has been issued; a CP518 Notice is used to report that the Tax Return is not on file, and a CP504 Notice is used to report that a Final Payment amount is due and owing – the latter can result in a Notice of Federal Tax Lien or Levy of a Bank Account or Wages. Letter 1058 is a more serious situation that Taxpayers may find themselves in since Letter 1058 refers to an actual intent to Seize Property. With an intent to seize a Taxpayer’s Property (or rights to a property), it is the Internal Revenue Service putting the Taxpayer on notice that the IRS has reached its final straw.

As provided by the IRS:

Understanding Your LT11 Notice or Letter 1058

We haven’t received your payment for overdue taxes. We intend to seize your property or rights to property. You must contact us immediately.

What you need to do

      • Pay your unpaid balance: When you pay your balance in full, we’ll stop adding interest and applicable penalties. You can quickly and easily, pay your balance online. See “Finding out how much you owe” to learn how to determine your balance. If you can’t pay the full amount, pay what you can now; payments will reduce the amount of interest and applicable penalties added to the remaining balance in the future. If you’re current on your tax filings, you can request an installment agreement to pay the remaining balance on your account over time.

        • NOTE: If you owe less than $50,000, you may be able to set up an installment agreement using the Online Payment Agreement tool, which is the fastest way to get an installment agreement approved. If you can’t apply online, call us at the number on your notice or letter, or mail in an installment agreement request.

      • If you already paid in full or think we haven’t credited a payment, send proof of that payment to us using the address at the top of your notice or letter.

      • If you’re unable to pay the balance due, contact the telephone number listed on the notice or letter.

IRS Letter 1058 Frequently Asked Questions (FAQ)

What happens if I don’t respond to this notice of letter or don’t pay?

      • We can attach a levy to your wages or bank accounts up to the amount owed. We may also file a Notice of Federal Tax Lien. A lien is a public notice to your creditors that the government has a right to your interests in your current assets and any assets you acquire after we file the lien; it can affect your ability to get credit.

      • You may also be subject to the Fixing America’s Surface Transportation (FAST) Act legislation, which generally prohibits the State Department from issuing or renewing a passport to a taxpayer with seriously delinquent tax debt. Additional information on passport certification is available at IRS.gov/passports

What kinds of property can the IRS levy?

Property can include wages and other income, bank accounts, business assets, personal assets (including your car and home), Alaska Permanent Fund Dividends and state tax refunds, and Social Security benefits.

Can I appeal the balance due?

You may request a Collection Due Process hearing. See the notice or letter for directions. See Collection Due Process FAQ page for more information.

Tax publications you may find useful

Collection Due Process Hearing Request

When a person receives a Letter 1058 or LT11, they have the opportunity to dispute the penalty and stop enforcement proceedings pending the CDP hearing. Here are some key facts about CDP as provided by the IRS:

The Right to a CDP Hearing

      • By law, you have the right to a CDP hearing when you receive a Notice advising you of this right and you timely postmark a request for a hearing to the address indicated on the Notice. You are limited to one hearing under section 6320 (Notice and opportunity for hearing upon filing of notice of lien) and 6330 (Notice and opportunity for hearing before levy) for each tax assessment within a tax period.

      • You may contest the CDP determination in the United States Tax Court. Lien Notice: The IRS is required to notify you the first time a Notice of Federal Tax Lien is filed for each tax and period. The IRS must notify you within 5 business days after the lien filing. This notice may be mailed, given to you, or left at your home or office.

      • You then have 30 days, after that 5-day period, to request a hearing with Appeals. The lien notice you receive will indicate the date this 30-day period expires. Levy Notice: For each tax and period, the IRS is required to notify you the first time it collects or intends to collect a tax liability by taking your property or rights to property.

Who Can Apply for a CDP Hearing?

      • Taxpayers may request a CDP hearing upon receipt of a:

        • Letter 3172, Notice of Federal Tax Lien Filing and Your Rights to a Hearing Under IRC 6320

        • Letter 11, Final Notice – Notice of Levy and Notice of Your Right to a Hearing

        • ACS LT 73

        • ACS LT 75

        • Letter 1058 (BR), Final Notice Reply within 30 Days (Braille Version)

        • Letter 1058 (SP), Final Notice Reply within 30 Days – Spanish

        • Letter 1058-A, Notice of Intent to Levy and Notice of Your Right to a Hearing for Joint Filers

        • Letter 1058-A (SP), Notice of Intent to Levy and Notice of Your Right to a Hearing for Joint Filers (Spanish)

        • Letter 1058-B, Final Notice Reply Within 30 Days – Branded Prescription Drugs

        • Letter 1058-D, Post Levy Collection Due Process Notice

        • Letter 1058-D (SP), Post Levy Collection Due Process Notice (Spanish)

        • Letter 1058-F, Post Levy Federal Contractor Collection Due Process

        • Letter 1058-F (SP), Post Levy Federal Contractor Collection Due Process (Spanish)

        • Letter 1058-I, Final Notice Reply within 30 Days – Insurance Provider Fee

        • CP 77, 90, 92, 242 and 297

        • Letter 2439, Notice of Jeopardy Levy and Right of Appeal

Requesting a CDP Hearing

      • How do you request a CDP or equivalent hearing with the IRS Independent Office of Appeals? Complete Form 12153, Request for a Collection Due Process or Equivalent Hearing, or other written request with the same information and send it to the address shown on your lien or levy notice. To request an equivalent hearing, you must check the Equivalent Hearing box on line 7 of Form 12153, or if you don’t use Form 12153 write that you want an equivalent hearing if the CDP hearing request is late.

      • If you received both a lien and a levy notice, you may appeal both actions by checking the boxes on line 6 of Form 12153 or if you don’t use Form 12153, you may appeal both actions in one written request.

The CDP Hearing

      • What will happen when you request a CDP or equivalent hearing with the IRS Independent Office of Appeals? After you request a hearing, you may still discuss your concerns with the Collection office that sent the lien or levy notice. If you are able to resolve the issues with that office, you may withdraw your request for a hearing. If you are unable to, or do not choose to, resolve the issues with the Collection office, your case will be forwarded immediately to Appeals. Appeals will contact you to schedule a conference. Your conference may be held by telephone, correspondence, or, if you qualify, in a face-to-face conference at the Appeals office closest to your home, school or place of business. To qualify for a face-to-face conference, you must not raise any issues that are deemed as frivolous or made with a desire solely to delay or impede collection. If you are proposing a collection alternative, it may be necessary for you to submit financial information or tax returns. Generally, the IRS Independent Office of Appeals will ask the Collection Function to review, verify and provide their opinion on any new information you submit.

      • We will share their comments with you and give you the opportunity to respond. If you request a face-to-face hearing, the Appeals Officer will notify you by letter if you need to take steps to qualify for a faceto-face conference. Unless one of the exceptions in section 6330(f) applies, for Jeopardy situations, State Income Tax levies, Federal Contractor levies or Disqualified Employment Tax levies, levy action is not permitted for the subject tax and periods during the 30 days after the levy notice and during the timely requested CDP hearing process. Normally, there will be no levy action during the period you have to request a hearing from a lien notice and during the related CDP hearing process. If your request for a CDP hearing is timely, the 10-year period the IRS has to collect your taxes will be suspended until the date Appeals’ determination becomes final or you withdraw your request for a hearing in writing.

      • At the conclusion of the CDP hearing, Appeals will issue a determination letter unless you have withdrawn your hearing request. If you don’t agree with Appeals’ determination, you may request judicial review of the determination by petitioning the United States Tax Court within the time period provided for in the Appeals’ determination letter. You may not be able to raise issues in the Tax Court if you do not raise them during the Appeals hearing, and the Tax Court may limit the evidence you can present to the evidence you submitted to Appeals during the hearing. 

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