Officers from the Internal Revenue Service (IRS) may send out a Letter 1058 - Final Notice of Intent to Levy to a taxpayer with an outstanding tax debt. The letter provides legal notice of the debt and a final chance to remedy the debt before the IRS will begin to levy assets or put a lien on the property.
If you receive an LT1058 notice from the IRS, contact your reliable tax attorney as soon as possible. In Maryland, contact Juda Gabaie at Gabaie & Associates, LLC for help.
What is an IRS Notice LT 1058?
An LT1058 is essentially the same as an LT11 notice. These notices from the IRS give warning to the taxpayer who has unpaid tax debts. According to the letter, the IRS may seize or levy your property or rights to property after a certain date if the tax amount is not paid. The notice also informs the taxpayer of their right to a Collection Due Process hearing.
If no action is taken or the taxpayer does not pay off the tax amount before the deadline indicated on the form, the IRS may levy or seize property and assets, including:
- Wages and other income,
- Bank accounts,
- Business assets,
- Personal assets (including home and car), and
- Social Security benefits.
Travel Restrictions with Tax Debt
Under the Fixing America's Surface Transportation (FAST) Act, if you are individually liable for more than $52,000 in tax debt, penalties, and interest, the State Department may not issue or renew your passport or revoke your passport or limit your ability to travel outside the U.S.
What Happens After Getting an LT1058 Notice in the Mail?
Review the notice carefully after getting a notice from the IRS. You can contact your reliable tax attorney to review the notice and let you know your options and how to move forward to reduce the risk of the IRS seizing your property. Your options for responding to the LT 1058 include:
- Making an immediate payment in full,
- Making payment arrangements, or
- Requesting a collection due process hearing.
There is generally a pay-by date on the notice but you should not wait until the last minute to take action. It can take time to get through to the IRS or get the money together to make a payment. Contact your tax lawyer as soon as possible after receiving a tax notice of intent to levy.
Collection Due Process Hearing
If you do not agree with the tax notice, you can request a Collection Due Process hearing. This is done through filing an IRS form 12153. The form also asks for the basis to challenge the collection. Talk to your tax lawyer about how you can challenge the collections through a collection due process hearing.
Make a Payment in Full
If you do not dispute the tax assessment, you can make a payment in full by the due date. You can follow the instructions on the notice or contact the IRS to make a payment. You may want to talk to your tax lawyer first to make sure you understand all your options and rights in challenging any tax assessment or penalties.
Payment Plans or Offer in Compromise
If you cannot make a payment in full, you may be able to enter into a payment plan with the IRS. Payment options include:
- Installment agreements,
- Automatic deductions,
- Payroll deductions, or
- Credit card payments.
Your tax lawyer may also be able to negotiate an offer in compromise. This may allow you to reduce your tax liability and pay less than the total tax debt through negotiating a settlement with the IRS.
Questions About Your IRS Notice for Maryland Tax Lawyer
Contact your tax lawyer as soon as possible after receiving notice of an intent to seize property. If you received a Notice LT 1058 or LT11 from the IRS, contact Gabaie & Associates, LLC for a free consultation. You can contact Juda Gabaie online or call (410) 862-2198 for help with your IRS or Maryland tax issues.