Received IRS Notice LT1058? This is the IRS's final warning before seizing your assets or filing a federal tax lien. You have 30 days to request a Collection Due Process (CDP) hearing. Learn your rights and how to respond immediately.
IRS Notice LT1058 is a final notice that informs you of the IRS's intent to file a Notice of Federal Tax Lien and/or proceed with levy action to collect your unpaid tax debt. This notice gives you 30 days to request a Collection Due Process (CDP) hearing to challenge the IRS's proposed collection actions.
LT1058 is one of the most serious IRS notices because it addresses both liens and levies. A federal tax lien is a public record that attaches to all your property (real estate, vehicles, business assets) and severely damages your credit. A levy is the actual seizure of your property to satisfy the debt.
Critical points about LT1058:
The LT1058 notice will show the tax year(s), the total amount owed (including penalties and interest), and detailed instructions for requesting a Collection Due Process hearing using Form 12153.
The IRS typically sends LT1058 notices for the following reasons:
Ignored Multiple Collection Notices
You received CP14, CP501, CP503, and CP504 but didn't pay the amount owed or contact the IRS to set up a payment arrangement. The IRS has exhausted all voluntary collection efforts and is now moving to enforced collection through liens and levies.
Large Unpaid Tax Debt
You owe a significant amount in back taxes (typically over $10,000), and the IRS has determined that a federal tax lien and levy are necessary to collect the debt and protect the government's interest.
Failed Payment Plan
You previously had an installment agreement but defaulted by missing payments. The IRS terminated your payment plan and is now proceeding with lien filing and levy action.
Multiple Tax Years Owed
You owe taxes for multiple tax years, and the total debt has reached a threshold where the IRS files liens and proceeds with levies to collect the full amount.
Immediate Actions Required:
Request a Collection Due Process (CDP) Hearing
File [Form 12153](/forms/12153) (Request for a Collection Due Process or Equivalent Hearing) within 30 days of the LT1058 notice date. This stops the lien filing and levy and gives you the right to challenge the IRS's proposed collection actions before an independent appeals officer. You can propose alternative collection methods during the hearing.
Pay the Full Amount
If you can pay the full balance immediately, do so to stop the lien filing and levy process. You can pay online through IRS Direct Pay, by credit/debit card, via electronic funds withdrawal, or by mailing a check. Paying in full immediately resolves the issue.
Set Up an Installment Agreement
If you can't pay in full, [apply for an installment agreement](/payment-plan/new) immediately. If approved, the IRS may not file a lien (or may withdraw an existing lien) and will stop levy action as long as you stay current with payments. Apply online or by calling the number on your notice.
Consult a Tax Attorney
LT1058 is a serious legal matter involving both liens and levies. Consider consulting with a tax attorney who specializes in IRS collections to evaluate your options, represent you in a CDP hearing, and negotiate with the IRS on your behalf.
Collection Due Process (CDP) Hearing
File Form 12153 within 30 days to request a hearing. This stops the lien filing and levy and allows you to propose alternative collection methods. You can challenge the amount owed, propose an installment agreement or offer in compromise, or request Currently Not Collectible status.
Pay in Full
Pay the full balance immediately through IRS Direct Pay, credit/debit card, or check. This is the fastest way to stop the lien filing and levy process.
Installment Agreement
Apply for monthly payments. If approved and the balance is under $25,000, the IRS may not file a lien. If a lien has already been filed, you can request lien withdrawal after making three consecutive payments. Apply online or by calling the number on your notice.
Offer in Compromise
Settle your debt for less than you owe if you qualify based on your ability to pay. Use Form 656 to apply. This is a viable option if you can't pay the full amount and don't qualify for a payment plan.
Currently Not Collectible (CNC) Status
Request CNC status if you're experiencing financial hardship and can't afford any payment. Submit Form 433-F to prove hardship. CNC temporarily suspends collection (including levy), but the IRS may still file a lien, and interest and penalties continue to accrue.
A federal tax lien is a legal claim against all your property (real estate, vehicles, business assets, financial accounts) that arises when you owe unpaid taxes. The lien becomes a public record and severely damages your credit score. It makes it difficult to sell property, get loans, or refinance mortgages. The lien remains in effect until the debt is paid in full or the statute of limitations expires (typically 10 years).
A lien is a legal claim against your property that protects the government's interest in your assets. A levy is the actual seizure of your property to satisfy the debt. The IRS typically files a lien first, then proceeds with levy if the debt remains unpaid. LT1058 warns you that both actions are coming.
Yes, but it's difficult. You can request lien withdrawal if you set up a Direct Debit installment agreement and owe less than $25,000, or if you pay the debt in full. You can also request lien subordination (allowing other creditors to take priority) or lien discharge (removing the lien from specific property) in certain situations.
A CDP hearing is your legal right to challenge the IRS's proposed lien filing and levy before an independent appeals officer. You can dispute the amount owed, propose alternative collection methods (installment agreement, offer in compromise), or request Currently Not Collectible status. Filing Form 12153 within 30 days stops the lien filing and levy until the hearing is resolved.
Yes, strongly consider it. LT1058 is a serious legal matter involving both liens and levies with severe financial consequences. A tax attorney can represent you in a CDP hearing, negotiate with the IRS, and help you explore all available options to prevent lien filing and asset seizure.