If you’ve received Letter 1058 from the IRS (it also goes out as notice LT11, and you may see it referred to as CP1058), it is the IRS’s last notice before it can levy your wages, bank accounts or other property. Its full name is the Final Notice of Intent to Levy and Notice of Your Right to a Hearing, and the second half of that name matters most. For a short window, you have the right to an appeal that can keep the levy from happening while your case is reviewed.
We know how unsettling this letter is to open. Here is what it means and what to do with the time it gives you.
What Letter 1058 Means
The IRS sends it after earlier bills and notices, such as the CP504, have gone unpaid. It tells you the IRS intends to seize property or rights to property to collect the balance. That can include wages and other income, bank accounts, business assets, personal assets such as a car or home, state tax refunds and Social Security benefits. The IRS has to send this notice at least 30 days before it levies.
The 30 Day Window to Request a Hearing
Within 30 days of the date on the letter, you can request a Collection Due Process hearing on Form 12153. A timely request generally stops levy action for the tax and periods on the letter while the hearing is pending, and if you disagree with the outcome, you can ask the U.S. Tax Court to review it. If you miss the 30 days, you can still ask for an equivalent hearing within one year of the letter’s date, but that does not stop a levy and its decision can’t be taken to court. Our collection appeals page explains both routes.
What You Can Ask For
A hearing isn’t only a chance to object. It’s a chance to put a workable option in front of the IRS:
- An installment agreement you can actually keep up with
- An offer in compromise, if you can’t realistically pay the full balance
- Currently not collectible status, when paying anything would leave you unable to meet basic living expenses
- Withdrawal of a filed tax lien, where you qualify
What to Do Right Away
- Check the date on the letter. The 30 day window is counted from that date, so don’t wait until you’ve decided what to do.
- If you’ve already paid, send the IRS proof of payment using the address on the letter.
- If you can’t pay in full, don’t set it aside. Requesting the hearing or arranging a payment plan before the deadline keeps your options open.
If a Levy Has Already Happened
If the IRS has already frozen a bank account, the bank holds the money for 21 days before sending it to the IRS, and that window is when a release can still be negotiated. Our IRS bank levies page walks through it.
How Fine & Clear Can Help
We pull your IRS account transcripts to confirm the balance and the years on the letter, file Form 12153 on time when a hearing is the right move, and put a specific payment arrangement in front of the IRS instead of just asking for more time.
If you’ve received Letter 1058, call Fine & Clear Tax Solutions at 516-209-2594 or request a free consultation. Have the letter in front of you so we can check the date.