Receiving an IRS LT1058 notice (Final Notice of Intent to Levy and Notice of Your Right to a Hearing) can be alarming. It is one of the final notices the IRS issues before taking enforced collection action against wages, bank accounts, or other assets.
However, it does not mean the collection will happen immediately. In many cases, taxpayers still have the right to appeal or pursue tax resolution options that may prevent levy action.
Need help now? Call (410) 358-1500 or visit our Contact Page for a free consultation.
What Is IRS LT1058?
IRS Letter 1058 is typically issued when the IRS believes you have unpaid tax debt and previous collection efforts have not resolved the matter.
The notice serves two important purposes:
- It notifies you that the IRS intends to levy certain assets if the tax debt remains unpaid.
- It informs you of your right to request a Collection Due Process (CDP) hearing.
If you fail to respond, the IRS may move forward with collection actions permitted under federal law.
Many Annapolis taxpayers first realize the severity of their tax situation when they receive LT1058. Unfortunately, by this stage, the IRS has often already sent multiple notices regarding the unpaid balance.
Why Did I Receive an LT1058 Notice?
There are several reasons why the IRS may issue a Final Notice of Intent to Levy.
Common causes include:
- Unpaid federal income taxes
- Self-employment tax debt
- Payroll tax liabilities
- Audit assessments
- Unfiled tax returns
- Interest and penalties that have accumulated over time
- Defaulted installment agreements
In many cases, taxpayers do not intentionally ignore their tax obligations. Financial hardship, business challenges, medical issues, divorce, or other life events can make it difficult to stay current with tax payments.
For Annapolis residents and business owners, a tax debt that initially seemed manageable can grow substantially as penalties and interest continue to accrue.
Is LT1058 the Same as a Levy?
No.
LT1058 is a notice that generally precedes levy action. It warns that the IRS may levy your assets if the matter is not resolved.
A levy is the actual collection action itself.
Put simply:
The distinction is important because taxpayers often still have valuable rights and options after receiving LT1058.
What Can the IRS Levy After Sending LT1058?
The IRS has broad authority to collect unpaid tax debts through levy action.
Depending on your circumstances, the agency may pursue:
| Asset Type |
Potential Collection Action |
| Wages |
Wage levy |
| Bank accounts |
Bank levy |
| Investment accounts |
Levy of available funds |
| Business income |
Collection of receivables |
| Certain property interests |
Potential seizure action |
For many taxpayers in Annapolis, a bank levy or wage levy creates the most immediate financial hardship. A frozen bank account can disrupt household finances, while a wage levy can reduce take-home pay and make it difficult to keep up with everyday expenses.
What Is a Collection Due Process Hearing?
One of the most important rights associated with LT1058 is the right to request a Collection Due Process (CDP) hearing.
This hearing allows taxpayers to challenge certain IRS collection actions before a levy moves forward.
During a CDP hearing, taxpayers may be able to:
- Challenge the proposed levy
- Discuss collection alternatives
- Request an installment agreement
- Pursue an Offer in Compromise
- Raise hardship concerns
- Address other collection-related issues
The deadline to request a CDP hearing is extremely important. Missing the deadline may limit the remedies available to you.
Because these hearings involve procedural rules and legal considerations, many taxpayers choose to seek professional guidance before responding to the notice.
Can You Stop an IRS Levy After Receiving LT1058?
Possibly.
Several tax resolution options may help stop or delay collection activity, depending on your financial circumstances and compliance history.
Installment Agreements
For some taxpayers, a formal payment plan can prevent further collection action.
An installment agreement allows qualifying taxpayers to make monthly payments over time rather than facing immediate levy action.
Offer in Compromise
An Offer in Compromise allows eligible taxpayers to settle certain tax liabilities for less than the full amount owed.
Not everyone qualifies, but this option may be available when paying the full balance would create significant financial hardship.
Currently Not Collectible Status
If you are experiencing significant financial hardship, the IRS may temporarily suspend collection efforts by placing your account in Currently Not Collectible (CNC) status.
While the CNC status does not eliminate the underlying tax debt, it may stop active collection efforts, including certain levy actions, while your financial situation remains difficult.
Determining whether you qualify generally requires a detailed review of your income, expenses, assets, and overall financial condition.
What Happens If You Ignore LT1058?
Ignoring an LT1058 notice can significantly increase the risk of enforced collection activity.
Once applicable deadlines pass, the IRS may move forward with collection actions that can affect your finances, property, and ability to meet everyday obligations.
Potential consequences may include:
- Wage levies
- Bank account levies
- Collection of business receivables
- Federal tax liens
- Ongoing penalties and interest
Many taxpayers assume they can deal with the issue later. Unfortunately, waiting often reduces the number of options available and makes resolving the matter more difficult.
Put simply, early action generally creates more opportunities for a favorable outcome.
Why Annapolis Taxpayers Should Take LT1058 Seriously
Residents and business owners throughout Annapolis face the same federal tax collection procedures as taxpayers across the country. However, the impact of an IRS levy can be particularly disruptive when it affects household finances, small business operations, or professional income.
We frequently assist Annapolis taxpayers who receive LT1058 notices after:
- Falling behind on estimated tax payments
- Experiencing business cash-flow problems
- Accumulating payroll tax debt
- Facing unexpected tax assessments
- Missing IRS correspondence during a period of financial hardship
What begins as an unpaid tax balance can eventually escalate into a situation where the IRS is actively preparing to levy assets. The sooner you address the issue, the more options you may have to resolve the matter before collection action occurs.
How Can a Tax Attorney Help After Receiving LT1058?
Many taxpayers are unsure whether they need legal representation after receiving a Final Notice of Intent to Levy.
The answer depends on several factors, including the amount owed, the complexity of the tax issue, and whether important deadlines are approaching.
A tax attorney may be able to:
- Review the notice and identify critical deadlines
- Evaluate Collection Due Process hearing rights
- Communicate directly with the IRS on your behalf
- Pursue collection alternatives
- Negotiate installment agreements
- Evaluate Offer in Compromise eligibility
- Seek hardship-based relief where appropriate
- Develop a long-term tax resolution strategy
The goal is not simply to respond to LT1058. The goal is to identify the most effective path toward resolving the underlying tax debt while protecting your financial interests.
You may also find these resources helpful:
- IRS Wage Garnishment Assistance
- IRS Bank Levy Relief
- Offer in Compromise Representation
- Installment Agreement Assistance
- Collection Due Process Appeals
Frequently Asked Questions
How long do I have to respond to LT1058?
The notice contains important deadlines that may affect your right to challenge the proposed levy. Review the notice carefully and seek guidance as soon as possible after receiving it.
Is LT1058 the same as a levy?
No. LT1058 is a notice that generally precedes levy action. It warns that the IRS intends to levy certain assets if the tax debt remains unresolved.
Can the IRS take money from my bank account after sending LT1058?
Potentially. If the matter is not resolved and applicable deadlines pass, the IRS may pursue a bank levy and collect funds from your account.
Can the IRS garnish my wages?
Yes. Wage levies are one of the collection tools available to the IRS after required notice procedures have been satisfied.
What if I missed the deadline to request a Collection Due Process hearing?
Missing the deadline does not necessarily mean all options are gone. Depending on the circumstances, other remedies or collection alternatives may still be available.
Can Gabaie & Associates help taxpayers in Annapolis?
Yes. Gabaie & Associates represents individuals and businesses throughout Annapolis, Anne Arundel County, and surrounding communities who are facing IRS collection actions, tax debt disputes, levies, liens, and other federal tax controversies.
Get Help Before the IRS Takes the Next Step
An LT1058 Final Notice of Intent to Levy should never be ignored. While receiving the notice does not automatically mean the IRS will levy your assets immediately, it does indicate that the agency is preparing to take stronger collection action if the matter remains unresolved.
Early intervention may help preserve important appeal rights and open the door to collection alternatives that are no longer available once levy action begins.
If you received an LT1058 notice in Annapolis, speaking with an experienced tax attorney now may help you understand your rights, evaluate your options, and develop a strategy for resolving your tax debt.
Contact Gabaie & Associates, LLC at (410) 358-1500 or visit our Contact Page to take immediate action and protect your assets.
