If you’ve received a letter 1058 or LT11 from the IRS, it’s important to understand what it means and what your next steps should be. Also known as a Final Notice of Intent to Levy, this letter is a clear signal that the IRS intends to seize your property or rights to property to fulfill your unpaid federal tax debt.
Why did I receive a Letter 1058 or LT11?
The IRS issues Letter 1058 or LT11 when you’ve failed to pay an existing tax debt despite prior notifications. It represents an escalation and the last chance for you to make arrangements for repayment before the IRS begins the process of property levy.
What options do I have after receiving this letter?
When you receive Letter 1058 or LT11, it doesn’t mean you’re out of options. The letter is a wakeup call and a catalyst for you to take action to resolve your tax debt.
- Pay in Full: If you’re able to, the simplest solution is to pay the amount owed in full. This will halt any further collection actions by the IRS.
- Establish a Payment Plan: If you can’t afford to pay in full, you may be able to set up an installment agreement with the IRS, allowing you to pay your debt over time.
- Submit an Offer in Compromise: This involves proposing a reduced amount to settle your tax debt. However, you must meet certain criteria to be eligible for this option.
What if I fail to respond to Letter 1058 or LT11?
Ignoring this letter is not recommended. If you fail to respond within 30 days, the IRS will begin levy actions. They may garnish your wages, levy bank accounts, and seize any property or rights to property to satisfy the tax debt.
Frequently Asked Questions
Can I appeal the decision in Letter 1058 or LT11?
Yes, the IRS allows taxpayers to appeal the Intent to Levy before the levy takes place. You must request a Collection Due Process hearing within 30 days of the date on the notice.
Should I seek professional help to deal with Letter 1058 or LT11?
While you can handle the situation on your own, it might be beneficial to seek the assistance of a tax professional. They could help you understand your options and navigate through the IRS’ processes.
In conclusion, receiving a Letter 1058 or LT11 from the IRS can be unnerving, but remember, you have options. It’s important to act quickly and proactively to resolve your tax debt and halt the levy process. Consider seeking a tax professional’s guidance to manage the situation appropriately and protect your financial interests.