Letter 1058
FINAL NOTICE
NOTICE OF INTENT TO LEVY
AND NOTICE OF YOUR RIGHTS TO A HEARING
PLEASE RESPOND IMMEDIATELY
If you have received a Letter 1058, it means you owe tax and have ignored the Letter 2050. This is the most serious notice the IRS sends to a taxpayer owing tax. It must be responded to. Otherwise, you will lose appeal rights and they will levy all available sources including, your bank account, wages, customers, etc. You could be left without the ability to pay your rent or buy food and you could have checks you have written bouncing. This type of collection action can be devastating to you and your family.
The top right of Letter 1058 will indicate the date of the notice, the primary social security number or employer ID, the number to call and possibly a contact name. These notices can be issued automatically by the Automated Collections System (ACS) or by a Revenue Officer. In the body of the notice it will show the type tax, tax periods involved and the amount owed for each period.
If you feel like the amount is really due and you can afford to pay the balance shown, you should remit the amount shown as soon as possible, using the envelope included with the notice.
If you agree with the amount but are unable to pay it all right now there are several options. If you owe no other tax, the amount due is less than $25,000, and you can pay the balance off in 60 months or less -- call the number listed on the notice and make arrangements with them. You can specify the day of the month you want to make payments. You are advised to pay it off as soon as possible, however, you may ask them what the minimum payment is to pay off the balance in 60 months. If the amount is more than you can handle or the technician refuses to give you that option - select one of the options below.
One caution -- if the taxes are 941 (payroll) taxes from your employee's withholding, you have a very different problem and need to seek professional help as soon as possible, unless you are in a position to pay the liability within 30 days. Please contact us immediately if this is the case.
If you contact them and are unable to work out an agreeable arrangement to pay the tax or if it appears it will take more than 30 days to reach an agreement -- you are advised to file Form 12153, which will be included in the 1058 packet, to request a collection due process hearing. It must be sent by the 30th calendar day following the date of the Letter 1058. If it is not, you forever lose the right to contest the collection action in court. You are advised to file it even if it appears you will be able to work out an agreeable arrangement. The Form 12153 must be filed with the office that sent the notice to you. Fax receipt will suffice. If you are going to mail it, you should send it certified -- return receipt requested.
As stated above, Letter 1058 is a very serious notice. We strongly recommend professional help with this notice. Please contact us today for assistance.
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