Letter 1058- Final Notice of Intent to Levy
If you have received a Letter 1058, Final Notice of Intent to Levy, immediate action should be taken regarding any and all tax debts or tax issues.
When a taxpayer has a tax liability the Internal Revenue Service goes about collection of the debt through a specific procedure. Initially, the taxpayer receives a notice(s) stating the debt and requesting payment.If the debt is not satisfied or arrangements are not made through a formal agreement to resolve the debt, the IRS continues to issue notices. As time passes and notices are issued, the notices will be come more “demanding” and more “threatening” to the taxpayer.
A Letter 1058, Final Notice of Intent to Levy will be issued when the IRS has issued other notices and no formal resolution has been established. The 1058 is the last notice the IRS has to issue in giving the taxpayer due process prior to levying bank accounts, garnishing wages etc. Usually Letter 1058 is sent via certified mail. The taxpayer has 30 days from the date of the Letter 1058 to contact the IRS and establish an agreement, or the taxpayer can file for an appeal, what is known as a Request for a Collection Due Process Hearing within the 30 days from the date of the 1058 Notice. Additionally, the taxpayer can file for an Equivalent Hearing after the 30 days has expired and still receive a hearing. However, a Collection Due Process Hearing and Equivalent Hearing are different and can have both advantages and disadvantages to the taxpayer.
If the taxpayer does not respond to the final notice of intent to levy within 30 days, the Internal Revenue Service can begin enforcing collection of the tax through bank levies and wage garnishments.
The Letter 1058 can be issued on a single period of tax debt or on multiple periods of tax debts depending upon the situation.The taxpayer or the taxpayer’s Power of Attorney can file and request for the Collection Due Process Hearing or Equivalent Hearing. An appeals officer will be assigned to hold the hearing and contact the taxpayer or the taxpayer’s representative.
Any individual or business that has received a Letter 1058 should take immediate action to resolve the outstanding tax liability. It can often be much easier to resolve the debt prior to a bank levy or wage garnishment. A bank levy could completely deplete a bank account and funds set aside for personal expenses or necessary business capital. Such action could negatively affect the taxpayer’s ability to remain compliant with their current taxes, which is necessary to establish and maintain any formal agreement to resolve the debt with the Internal Revenue Service.
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