I have to start by stating that this “Final Notice notice of intent to levy and notice of your rights to a hearing, please respond immediately” is one of the most important and urgent IRS notice a taxpayer may receive, and although it is so important as it would lead to levying your bank accounts, paychecks etc., many taxpayers unintentionally ignore it. You MUST attend to this Final levy notice right away as it comes with rights to appeal and resolve your unresolved tax debt. Learn more about CDP collection due process and form 12153.
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Receiving a letter from the Internal Revenue Service (IRS) can be an anxiety-inducing experience for many taxpayers. One such letter, IRS Letter 1058, also known as LT11, often raises questions and concerns. In this article, we aim to demystify the purpose of IRS Letter 1058, explain common reasons for its issuance, and guide you on how to effectively respond. Whether you’ve recently received this letter or want to be prepared, this comprehensive FAQ will provide the necessary information to navigate through the process and ensure a favorable resolution.
What is IRS Letter 1058 or LT11?
IRS Letter 1058, or LT11, is an official communication sent by the IRS to inform taxpayers about a proposed aggressive collection action, a Tax Levy. It serves as a final notice, notifying taxpayers that the IRS intends to levy all levy sources such as bank accounts, investment accounts, paychecks, social security income etc..
Why did I receive IRS Letter 1058?
There are several reasons why you may receive IRS Letter 1058. Common triggers include unpaid back taxes, taxes assessed through SFR as the taxpayer did not file. The letter is typically sent after the IRS has conducted a thorough review of your tax return and identified unpaid back taxes.
What should I do upon receiving IRS Letter 1058?
Upon receiving IRS Letter 1058, it is crucial not to panic. Take the following steps to address the situation:
a. Read the letter carefully: Understand the adjustments being proposed, the time frame for response, and the potential consequences of not responding.
b. Gather supporting documents: Collect all relevant documents, such as receipts, bank statements, and tax forms, to substantiate your original tax return, complete and provided form 433.
c. Consult a tax professional: If you’re unsure about the adjustments or need assistance in formulating a response, consider consulting a qualified tax professional who can guide you through the appeal process.
d. Respond within the specified timeframe: It is essential to respond promptly to IRS Letter 1058. Failing to do so may result in the IRS assessing the proposed adjustments and initiating aggressive collection actions. File for CDP collection due process form 12153 to appeal.
How should I respond to IRS Letter 1058?
Crafting a well-documented and persuasive response is vital when dealing with IRS Letter 1058. Consider the following steps:
a. Understand the proposed adjustments: Review the adjustments in detail, comparing them with your original tax return. Identify any errors, discrepancies, or misunderstandings.
b. Prepare a written response: File for CDP collection due process form 12153 to appeal along with form 433. Explain your position, providing supporting documentation, and citing relevant tax laws or regulations.
c. Seek professional assistance, if necessary: If the proposed adjustments are complex or if you’re unsure about how to respond effectively, consider engaging a tax professional to help you navigate the appeal process.
d. Keep copies of all correspondence: Maintain copies of all letters, documents, and supporting evidence exchanged between you and the IRS for your records.
What are the potential outcomes after responding to IRS Letter 1058?
After responding to IRS Letter 1058, there are several possible outcomes:
a. No change: If the IRS finds your response satisfactory and agrees with your position, they may close the case with no further action.
b. Revised assessment: The IRS may partially or fully accept your explanations, resulting in a revised assessment that reflects the adjustments you contested.
c. Additional information request: In some cases, the IRS may request further documentation or clarification. Respond promptly to avoid delays and ensure a favorable resolution.
d. Appeals process: If you disagree with the IRS’s decision, you have the right to appeal. Follow the instructions provided in IRS Letter 1058 to initiate the appeals process within the specified timeframe. File for CDP collection due process form 12153 to appeal.
Receiving IRS Letter 1058 can be a daunting experience, but it’s important to address it promptly and effectively. By understanding the purpose of the letter, responding promptly, and seeking professional assistance when needed, you can navigate the process with confidence. Remember, careful review, preparation, and clear communication are key to achieving a favorable resolution. Stay proactive, keep detailed records, and don’t hesitate to consult with a tax professional who can provide valuable guidance throughout the CDP appeal process.
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FAQ – IRS Letter 1058 (also known as LT11):
If you’ve received a letter from the Internal Revenue Service (IRS) with the title “IRS Letter 1058” or “LT11,” you may have some questions and concerns. Don’t worry; you’re not alone. Many taxpayers have encountered this letter and sought clarification. In this comprehensive FAQ article, we’ll address the most common questions about IRS Letter 1058 (LT11) to help you understand its purpose, implications, and what steps you need to take. Let’s dive in!
Q1: What is IRS Letter 1058 (LT11)?
IRS Letter 1058, also known as LT11, is an official notice sent by the IRS to taxpayers to inform them of an overdue tax liability. It serves as a final notice of intent to levy, giving recipients one last opportunity to resolve their tax debt before the IRS takes further collection action.
Q2: Why did I receive IRS Letter 1058 (LT11)?
You received IRS Letter 1058 (LT11) because you have an outstanding tax debt that hasn’t been resolved. The IRS sends this letter to notify you that they intend to levy your assets or wages to satisfy the debt unless you take prompt action.
Q3: What should I do after receiving IRS Letter 1058 (LT11)?
It’s crucial to take immediate action upon receiving IRS Letter 1058 (LT11). Ignoring or delaying a response can lead to serious consequences. Review the letter carefully to understand the specifics of your tax debt and the steps you need to take. Contact the IRS as soon as possible to discuss payment options or seek professional assistance. File for CDP collection due process form 12153 to appeal.
Q4: How can I contact the IRS regarding IRS Letter 1058 (LT11)?
You can find the contact information on the letter itself. Typically, the IRS provides a phone number that you can call to speak with a representative regarding your tax debt. Be prepared to provide your identifying information, such as your Social Security number and the tax year(s) in question.
Q5: Can I dispute the tax debt mentioned in IRS Letter 1058 (LT11)?
Yes, you can dispute the tax debt if you believe there is an error or if you have already resolved the debt. Contact the IRS and provide any relevant documentation to support your case. It’s advisable to consult with a tax professional to navigate the dispute process effectively.
Q6: What happens if I don’t respond to IRS Letter 1058 (LT11)?
Failing to respond to IRS Letter 1058 (LT11) can have serious consequences. The IRS will proceed with their collection efforts, which may include levying your bank accounts, garnishing your wages, or seizing your assets to satisfy the outstanding tax debt. It’s crucial to act promptly to avoid these outcomes.
Q7: Can I set up a payment plan with the IRS?
Yes, setting up a payment plan, such as an installment agreement, is one option for resolving your tax debt. You can discuss the available payment options with the IRS representative when you contact them. Keep in mind that interest and penalties may continue to accrue until the debt is fully paid.
Q8: Can I negotiate a settlement with the IRS?
In some cases, you may be eligible for an offer in compromise (OIC), which allows you to settle your tax debt for less than the full amount owed. However, an OIC is typically granted if you can demonstrate that paying the full amount would cause financial hardship or if there is doubt about your ability to pay. Consult a tax professional to determine if you qualify and to guide you through the process.
Q9: Can I request a collection due process (CDP) hearing?
Yes, you have the right to request a collection due process (CDP) hearing if you disagree with the IRS’s intent to levy. The CDP hearing allows you to present your case to an impartial appeal officer and explore alternative resolution options. Be aware that there are time limits for requesting a CDP hearing, so act promptly.
Q10: Can I seek professional help for dealing with IRS Letter 1058 (LT11)?
Absolutely! Dealing with tax debt and the IRS can be complex and overwhelming. Seeking professional assistance from a tax attorney, enrolled agent, or certified public accountant (CPA) who specializes in tax resolution can provide valuable guidance and ensure your rights are protected throughout the process.
Q11: How long do I have to respond to IRS Letter 1058 (LT11)?
The IRS typically provides a specific timeframe within which you must respond to IRS Letter 1058 (LT11). This timeframe is stated in the letter itself. It’s essential to adhere to the given deadline to avoid further complications.
Q12: What if I can’t afford to pay the tax debt mentioned in IRS Letter 1058 (LT11)?
If you can’t afford to pay the tax debt in full, you still have options. As mentioned earlier, you can explore setting up a payment plan or consider an offer in compromise (OIC). Additionally, the IRS may temporarily delay collection efforts if you can demonstrate that paying the debt would cause significant financial hardship.
Q13: Can I request an abatement of penalties and interest?
Yes, under certain circumstances, you may be able to request an abatement of penalties and interest. This is typically done through a penalty abatement letter or by discussing your situation with the IRS representative. A tax professional can assist you in preparing a well-documented abatement request.
Q14: What if I never received IRS Letter 1058 (LT11)?
If you believe you should have received IRS Letter 1058 (LT11) but haven’t, it’s still your responsibility to address any outstanding tax debt. Reach out to the IRS proactively to inquire about your tax status and the steps you need to take to resolve any potential issues.
Q15: Can I prevent future tax problems?
Absolutely! To prevent future tax problems, ensure you file your tax returns accurately and on time. If you’re unable to pay your taxes in full, file your return anyway and explore payment options or other resolution methods with the IRS. Keeping meticulous records and seeking professional advice when necessary can also help you stay compliant with tax laws.
“Final Notice notice of intent to levy and notice of your rights to a hearing, please respond immediately”
Remember, this article is meant to provide general information about IRS Letter 1058 (LT11) and should not be considered as legal or tax advice. Each taxpayer’s situation is unique, and it’s essential to consult with a qualified tax professional to address your specific circumstances. Act promptly, seek assistance when needed, and work towards resolving your tax debt to avoid potential consequences.
Contact us for tax help today.
Can you explain IRS Form 12153 CDP to me?
IRS Form 12153 CDP is a form that taxpayers can use to request a Collection Due Process (CDP) hearing with the Internal Revenue Service (IRS). A CDP hearing is a taxpayer’s opportunity to challenge the IRS’s decision to levy their property or file a tax lien.
To request a CDP hearing, taxpayers must file Form 12153 within 30 days of receiving a notice from the IRS that they intend to levy their property or file a tax lien. The form can be mailed to the address listed on the notice.
Taxpayers who file Form 12153 must include the following information:
- Their name and address
- The tax year(s) that are the subject of the levy or lien
- The amount of tax that is owed
- The reason why they believe the levy or lien is inappropriate
The IRS will then review the taxpayer’s request and schedule a CDP hearing. The hearing will be held before an appeals officer from the IRS Office of Appeals.
At the hearing, the taxpayer will have the opportunity to present their case to the appeals officer. The appeals officer will consider all of the evidence presented by the taxpayer and the IRS before making a decision.
The appeals officer may uphold the IRS’s decision to levy or file a tax lien, or they may modify or reverse the decision. The appeals officer’s decision is final and cannot be appealed to the courts.
If the taxpayer is not satisfied with the appeals officer’s decision, they may file a petition with the Tax Court. The Tax Court is the only court that has jurisdiction to hear challenges to the IRS’s collection actions.
The CDP hearing process is an important opportunity for taxpayers to challenge the IRS’s decision to levy their property or file a tax lien. If you have received a notice from the IRS that they intend to levy your property or file a tax lien, you should contact an experienced tax professional to discuss your options.
Here are some additional things to keep in mind about the CDP hearing process:
- The CDP hearing is an informal hearing. There is no need to be represented by an attorney, but it is a good idea to bring someone with you who can help you present your case.
- The appeals officer will be familiar with the law and the IRS’s collection procedures. They will be looking for evidence that supports the taxpayer’s case.
- The taxpayer has the burden of proof at the CDP hearing. This means that the taxpayer must prove that the levy or lien is inappropriate.
- The appeals officer will make a decision based on the evidence presented at the hearing. The appeals officer’s decision is final but if you disagree, you can proceed with tax court.
If you are facing a levy or lien from the IRS, it is important to understand your rights and options. The CDP hearing process is an important opportunity to challenge the IRS’s decision and protect your property.