IRS Notice LTR1058 is a highly urgent formal notification known as a 'Final Notice of Intent to Levy and Notice of Your Right to a Collection Due Process (CDP) Hearing.' This notice is the IRS's final warning that they intend to seize your assets, wages, or bank accounts to satisfy an unpaid tax debt. Receiving this means the IRS has exhausted standard collection efforts and is now legally authorized to proceed with enforced collection actions.
Response Deadline
30 days from the date of the notice to request a Collection Due Process (CDP) Hearing using Form 12153.
Receiving LTR1058 means the IRS believes you owe a specific amount of tax, penalties, and interest, and they are preparing to take aggressive action to collect it. This notice is legally required before the IRS can seize (levy) your property, garnish your wages, or take funds directly from your bank accounts. It serves two critical purposes: First, it confirms the exact amount due and the IRS's intent to levy. Second, and most importantly, it grants you the legal right to request a Collection Due Process (CDP) Hearing. This hearing is your opportunity to appeal the proposed levy, dispute the underlying tax liability (if applicable and if you haven't had a prior opportunity), or propose an alternative collection resolution, such as an Installment Agreement or Offer in Compromise. If you do not respond by the deadline, the IRS will proceed with the levy without further warning.
You received IRS Notice LTR1058 because you have a confirmed, outstanding tax liability and have failed to fully resolve it after receiving prior balance due notices (like CP14, CP501, CP503, and CP504). Common reasons include: 1. Failure to respond to previous balance due notices or collection demands. 2. Defaulting on a prior payment plan (Installment Agreement). 3. The IRS rejected your proposed Offer in Compromise (OIC) or failed to reach an agreement on repayment. 4. You filed a tax return showing a balance due but never paid the amount owed. 5. The IRS completed an audit and assessed additional taxes that remain unpaid.
Immediate action is mandatory to prevent seizure of your assets. **Immediate Actions (Within 24-48 Hours):** Do not panic, but do not ignore this notice. Review the notice immediately to confirm the tax period and amount due. If you disagree with the amount, gather all supporting documentation. **Short-Term Actions (Within 30 Days):** Your primary goal is to file a timely request for a Collection Due Process (CDP) Hearing using Form 12153. Filing this form within the deadline automatically pauses (stays) the levy action, giving you time to negotiate. If you are unable to pay in full, prepare a financial disclosure (using Form 433-A or 433-B) detailing your income, assets, and expenses. **Long-Term Considerations:** Work with a tax professional (CPA or tax attorney) to determine the best resolution strategy, which could be an Installment Agreement, Offer in Compromise, or proving you are 'Currently Not Collectible' (CNC) status.
Ignoring Notice LTR1058 is extremely dangerous and will result in immediate enforced collection actions. If you miss the 30-day deadline, the IRS will lose its legal restraint and can immediately place a levy on your wages (wage garnishment), seize funds from your bank accounts, or place a levy on other assets like retirement accounts or accounts receivable. Furthermore, the IRS may file a Notice of Federal Tax Lien (NFTL), which publicly attaches the government's claim to all your current and future property, severely damaging your credit rating and making it difficult to sell assets or obtain loans. Interest and failure-to-pay penalties will continue to accrue daily on the unpaid balance.
Dexter can guide you through the entire response process step-by-step.
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