CP1058 Notice: The Final Warning from the IRS

If you’ve received a CP1058 Notice from the IRS, this is a serious matter. The IRS has been trying to reach you about unpaid taxes, and now they are preparing to take collection actions. It’s important to understand what this notice means and how to respond to avoid further escalation.

What is a CP1058 Notice?

A CP1058 Notice is a final warning from the IRS, signaling that they are preparing to take more aggressive action to collect the taxes you owe. It usually follows earlier notices, such as the CP501, and it marks a critical point in the IRS’s collection process.

This notice will typically contain:

A notice of your debt: The exact amount you owe, including penalties and interest.
A warning: It will inform you that the IRS plans to start actions like garnishing wages or placing a lien on your property.
How to respond: You will be instructed on how to take action, including options for resolving the debt.

The Danger of Ignoring the CP1058

Ignoring this notice could result in severe collection actions. Here’s what might happen if you don’t act:

Wage Garnishment: The IRS could take a portion of your wages to cover the tax debt.
Bank Levy: The IRS could seize funds directly from your bank account.
Property Liens: A lien may be placed on your property, making it harder to sell or refinance.

How to Handle a CP1058 Notice

You have a few options to handle a CP1058 Notice:

Pay the Full Amount: If you can afford to pay the debt in full, this will stop all collection actions.
Request a Payment Plan: If you can’t pay the full amount, setting up an installment agreement is often the best solution.
Negotiate an Offer in Compromise: If you’re in financial hardship, you may qualify for an Offer in Compromise, where the IRS agrees to settle your debt for less than you owe.

Why Fine & Clear Tax Solutions is Your Best Choice

At Fine & Clear Tax Solutions, we understand the gravity of receiving a CP1058 Notice. Our experienced team can help you navigate the IRS’s process and protect your financial future. Whether it’s negotiating a payment plan, helping you file for an Offer in Compromise, or simply offering expert advice, we’re here for you every step of the way.

If you’ve received a CP1058 Notice, call us at (516) 209-2594 for a free consultation. Let us help you resolve your tax issues today.