If you received a letter that reads ‘IRS Letter 1058/LT11’, know that it is a final notice from the IRS (Internal Revenue Service) reminding you about the balance you still owe. Moreover, if you do not resolve your delinquent matter, they will make an attempt to levy your bank accounts, garnish wages and other assets within the next thirty days. In most cases, a CP 504 (a final notice of your due balance) is sent before the IRS Letter 1058. Ideally, IRS Letter 1058/LT11 is more formal than other notices that you may have received by now. It will tell you that they will also be looking for other assets you own that can be levied. By then, you should have received prior notices that should have been addressed.
Before you continue on, let me tell you that this is the most important letter, and you should handle it with a sense of urgency as it gives you appeal rights through CDP collection due process 12153.
What should you do next, after receiving the IRS Letter?
Best way, is to call our firm right away at 877-788-2937, you are entitled to be represented, or of course you can choose to represent yourself before the most aggressive collection agency – the IRS.
The ideal and best possible reaction to IRS Letter 1058/LT11 is to pay the full amount you owe.
Of course, most taxpayers cannot pay the full amount, with added penalties and interest. If not, you can also contact the IRS using the phone number provided on the notice to inquire about alternative options, like payment plans, or an IRS installment agreement, and or an offer in compromise – OIC. If everything goes right, this can help you avoid IRS tax levies.
What will be the right time to get back to the IRS re: final notice letter?
Right Now. In fact, it would be in your best interest to immediately pay the balance you owe, or setup a settlement agreement with the Internal Revenue Service. This should serve as the best way to minimize the penalties and resolve your account as soon as possible.
As stated earlier, get representation! Call us right away at 877-788-2937.
What if I just ignore the IRS final notice?
If you don’t pay what you owe and decide to ignore the letter, the IRS will levy your wages, social security, bank accounts, accounts receivables and tax refunds. They may even end up filing a Notice of Federal Tax Lien.
What else can I do about the IRS Letter 1058/LT11?
You can talk to your tax advisor such as an EA Enrolled Agent, Tax Attorney or a CPA regarding the notice before you contact the Internal Revenue Service. Moreover, if you cannot pay back the balance now, contacting the IRS and setting up a payment agreement might be a good alternative as well. If the situation demands, an alternative resolution mechanism can also be constructed with the help of a tax power of attorney or professional representative.
What if the notice is incorrect or I don’t agree with IRS Letter 1058/LT11? What should I do then?
If you think that the notice has some discrepancy or if the notice is incorrect, you have the right to appeal it. Even if you have appealed earlier, this appeal will be more formal than those. Alternatively, you can also talk to your tax professional and take their advice on the issue.
Call us right away to get proper representation 877-788-2937.
About Mike Habib, EA NTPI Fellow®:
Mike Habib is an IRS licensed Enrolled Agent who owns and operates a specialized tax services boutique firm. His firm is A+ rated by the better business bureau, and an ELP endorsed local provider by Dave Ramsey (2012-2019). We serve clients in various metro areas such as Los Angeles, Whittier, Pasadena, Glendale, Burbank, Orange County, Riverside, Palm Springs, San Bernardino, Palmdale, Bakersfield, New York, New Jersey, Chicago, Houston, Phoenix, Philadelphia, San Antonio, San Diego, Dallas, San Jose, Detroit, Jacksonville, Indianapolis, San Francisco, Columbus, Austin, Memphis, Fort Worth, Baltimore, Charlotte, El Paso, Boston, Seattle, Washington DC, Milwaukee, Denver, Louisville, Jefferson, Las Vegas, Reno, Hempstead, Tucson, Nashville, Davidson, Portland, Tucson, Albuquerque, Santa Fe, Anchorage, Atlanta, Long Beach, Fresno, Sacramento, Mesa, Kansas City, Cleveland, Virginia Beach, Omaha, Miami, Oakland, Tulsa, Honolulu, Minneapolis, Pittsburgh, Colorado Springs, Arlington, Wichita, Birmingham, Montgomery, Tampa, Orlando.