While you should never ignore any communication from the IRS, Letter 1058 is one document that you want to act on sooner rather than later. It is both a demand for payment and a warning that you have one last chance to resolve your tax issue before collection actions begin.
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The IRS uses Letter 1058 as a final notice for unpaid taxes. Sent via certified mail to your last address on record, it is confirmation that unless you pay your outstanding tax balance or file an appeal, the IRS will:
- Attach a levy to your income or bank accounts (up to the amount owed) and/or;
- File a Notice of Federal Tax Lien on your current and future assets
This notice is never sent out of the blue. Before you receive Letter 1058, you will receive a:
- CP501 – Initial balance due reminder
- CP502 – Second request for payment
- CP503 – Third reminder about unpaid taxes
- CP504 – Intent to levy state tax refund or other property
You should contact an NJ tax attorney at Paladini Law for advice and representation if you receive the Letter 1058 to avoid adding costly interest and penalties. The danger of not responding can be costly.
What is the Difference Between Form LT11 and Letter 1058?
The IRS uses both LT11 and Letter 1058 to advise taxpayers that it intends to levy their property and that they have a right to file an appeal. LT11 is a shorter notice but the message (and the warning) is essentially the same.
What Happens After a Letter 1058 Is Received?
The IRS always sends several payment notices before a Letter 1058 goes out, so by the time you receive it, the government is prepared to take action. If you don’t respond within 30 days from the date of the letter, the IRS can levy your assets, such as salary and other income, bank accounts, personal and business property, state tax refunds, and even Social Security benefits. If you owe more than $50,000 (including fees and penalties), your passport could be revoked.
What Are Your Options When You Receive a Letter 1058?
When you receive this letter, you have several response options.
- Pay the balance in full. If you agree with the assessed amount and can pay it in full, follow the instructions on the letter to make payment.
- Request a payment arrangement. If you agreed with the amount owed but can’t afford to pay it in full, contact the IRS immediately to discuss a payment arrangement you can afford. An NJ tax attorney at Paladini Law can help you negotiate an outcome that won’t cause economic hardship.
- File an appeal. If you disagree with the assessed amount, you can file a Form 12153- Request for a Collection Due Process or Equivalent Hearing. Information on how to exercise this option can be found in Letter 1058. You can still attempt to reach an informal resolution prior to the hearing.
No matter how you intend to respond, it is critical that you contact the IRS by the deadline listed on the notice. If you don’t, the IRS can take immediate collection action by levying your income and seizing your property.
Consult Paladini Law to Resolve your Letter 1058
If you’ve recently received a Letter 1058, there’s no time to waste. Contact Paladini Law right away. Attorney Brad Paladini will recommend the right solution for your financial situation, such as an IRS installment agreement or Offer in Compromise. He has successfully guided many clients through one of life’s most stressful experiences – an IRS collection matter- and will work diligently to do the same for you. For more information, contact Paladini Law by calling (201) 381-4472 or filling out a contact form to schedule a consultation