An LT1058 is more than a warning about unpaid taxes. It is a Final Notice of Intent to Levy that generally gives you the right to request a Collection Due Process hearing before the IRS proceeds with certain collection action.
Gabaie & Associates helps individuals and business owners in Frederick respond to IRS collection notices, request Collection Due Process hearings when appropriate, and pursue tax resolution options that may help prevent or address a levy.
Received an LT1058 in Frederick? Call Gabaie & Associates at (410) 358-1500 or contact the firm online to discuss your situation.
What Is an LT1058 Notice?
An LT1058 is an IRS notice that warns a taxpayer of the agency’s intent to levy property for an unpaid tax liability. It also generally informs the taxpayer of the right to request a Collection Due Process hearing.
A levy allows the IRS to take property or rights to property to satisfy a federal tax debt. Depending on the circumstances, a levy can affect bank accounts, wages, vehicles, real estate, business assets, or other property.
The notice should identify the tax period and amount the IRS says you owe, along with the deadline and instructions for requesting a hearing.
Can I Request a Collection Due Process Hearing After an LT1058?
Potentially. The LT1058 generally provides information about your right to request a Collection Due Process hearing with the IRS Independent Office of Appeals.
The notice will state the deadline for submitting the request. If you timely request a CDP hearing, the IRS generally cannot proceed with the proposed levy while the hearing and any resulting court review are pending, subject to applicable rules.
A CDP hearing may allow you to propose a collection alternative, challenge the proposed collection action, or, in some circumstances, dispute the underlying tax liability.
The specific rights available to you depend on the circumstances of your tax account. Missing the deadline can also affect your appeal rights, so it is important to review the LT1058 as soon as you receive it.
What Happens If I Miss the LT1058 Deadline?
Missing the deadline stated in the LT1058 can limit your ability to request a Collection Due Process hearing.
That does not necessarily mean you have no way to address the tax debt. Other collection options may still be available depending on your circumstances, including an installment agreement, Currently Not Collectible status, or an Offer in Compromise.
If you missed the deadline, the first step is to determine the current status of your IRS account and whether a levy has already been issued. A tax professional can review the notice and account history and help identify the options that may still be available.
What Should You Do After Receiving an LT1058?
If you receive an LT1058, start by reviewing the notice and confirming the tax year and balance the IRS says you owe. Pay close attention to the deadline for requesting a Collection Due Process hearing.
Gather documents related to the tax debt, including:
- The LT1058 and previous IRS notices
- Tax returns for the years involved
- Records of payments made to the IRS
- Any existing installment agreement or other payment arrangement
- Bank statements and other financial records
- Information about your income, expenses, assets, and debts
If you believe the balance is wrong, gather records that support your position. You may have already paid some or all of the tax, failed to receive credit for a payment, or have another reason to dispute the amount shown on the notice.
If you cannot pay the balance in full, do not assume a levy is unavoidable. The IRS offers collection alternatives for qualifying taxpayers, and addressing the debt before a levy occurs may provide more options.
Can an LT1058 Be Stopped?
In some cases, yes. The IRS may agree to release or prevent a levy when the taxpayer resolves the underlying tax debt or qualifies for another collection alternative.
Depending on your circumstances, you may be able to establish an installment agreement, request Currently Not Collectible status, or pursue an Offer in Compromise.
A levy may also be inappropriate if the tax liability has already been paid, the IRS made an error, or the collection action would create an economic hardship recognized under federal tax law.
The right approach depends on your tax account, financial circumstances, and the stage of the collection process.
What If I Disagree With the Tax Debt?
An LT1058 does not necessarily mean the amount listed by the IRS is correct.
Review the tax year and balance against your records. You may have grounds to challenge the liability if you:
- Already paid the tax
- Did not receive credit for a payment
- Believe the IRS calculated the balance incorrectly
- Have documentation showing a different tax liability
- Did not previously have a reasonable opportunity to dispute the underlying tax assessment
If you believe the IRS’s records are incorrect, gather the documents supporting your position before agreeing to the proposed collection action.
Depending on the circumstances and whether you previously had an opportunity to challenge the liability, you may be able to raise issues concerning the underlying tax debt during the collection process.
Gabaie & Associates handles tax disputes, audits, appeals, unfiled returns, tax liens and levies, installment agreements, hardship matters, and other IRS and state tax issues.
How Can a Frederick Tax Attorney Help With an LT1058?
An LT1058 can require you to address a tax debt, a potential levy, and potentially your right to a Collection Due Process hearing.
A tax attorney can review the notice and your IRS account, determine what deadlines apply, and evaluate potential ways to prevent or address the levy.
At Gabaie & Associates, assistance may include:
- Reviewing the LT1058 and previous IRS notices
- Reviewing your IRS tax account and payment history
- Determining whether the tax balance is accurate
- Evaluating your eligibility for a Collection Due Process hearing
- Identifying appropriate collection alternatives
- Negotiating an installment agreement
- Requesting Currently Not Collectible status when appropriate
- Pursuing an Offer in Compromise when you meet the requirements
- Challenging errors involving the tax liability or collection process
- Communicating with the IRS on your behalf
The goal is to address the immediate threat of a levy while working toward a practical solution for the underlying tax debt.
Do You Need an LT1058 Attorney in Frederick?
If you live or operate a business in Frederick and received an LT1058 from the IRS, Gabaie & Associates can review the notice and explain your options.
The firm has a Frederick office at 5100 Buckeystown Pike, Suite 250A, Frederick, MD 21704. Juda Gabaie represents taxpayers before federal and state tax authorities and is admitted to the U.S. Tax Court and Maryland Tax Court.
Whether you need help requesting a Collection Due Process hearing, challenging the tax balance, or finding a way to resolve the debt before a levy occurs, getting the notice reviewed promptly can help you understand your next steps.
Call Gabaie & Associates at (410) 358-1500 or contact the firm online to discuss your LT1058.
Frequently Asked Questions About LT1058 Notices in Frederick
Is an LT1058 a final notice of intent to levy?
Yes. An LT1058 generally serves as a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. It warns that the IRS intends to levy if the tax debt is not addressed and explains your potential right to request a Collection Due Process hearing.
How long do I have to respond to an LT1058?
The LT1058 should state the deadline for requesting a Collection Due Process hearing. Review the notice carefully and act within the timeframe provided.
Can the IRS levy my bank account after sending an LT1058?
Potentially. An LT1058 warns about a proposed levy; it does not mean the IRS has already taken money from your bank account. If the debt remains unresolved and applicable requirements are met, the IRS may proceed with collection.
What happens if I cannot pay the IRS after receiving an LT1058?
You may have collection alternatives, including an installment agreement, Currently Not Collectible status, or an Offer in Compromise. Eligibility depends on your tax liability and financial circumstances.
Can I dispute the tax balance after receiving an LT1058?
In some circumstances, you may be able to challenge the underlying tax liability, particularly if you did not previously have a reasonable opportunity to dispute it. Your options depend on the history of your IRS account.
What should I bring to an LT1058 consultation?
Bring the LT1058, previous IRS notices, relevant tax returns, payment records, and any existing agreements with the IRS. Financial information about your income, expenses, assets, and debts can also help evaluate collection alternatives.
Get Help With an LT1058 in Frederick
An LT1058 is a serious IRS collection notice, but receiving one does not necessarily mean you have run out of options. Depending on your circumstances, you may be able to request a hearing, establish a payment arrangement, challenge an incorrect balance, or pursue another tax resolution option.
If you received an LT1058 in Frederick, call Gabaie & Associates at (410) 358-1500 or contact the firm online to discuss your situation.
