If you received the IRS letter 1058, this is the final notice to your unpaid taxes. This letter is serious, so you should take immediate action. If you do not respond to the IRS letter 1058 within 30 days, the IRS can levy or seize your assets. Our article helps you understand what exactly to tackle when it comes to your IRS tax debt. A tax accountant in Pembroke Pines can help you start making progress towards that goal.
What Is The IRS Letter 1058?
IRS Letter 1058/LT11 is more formal than the ones you have received until now, but it looks remarkably similar to CP504, CP503, and CP501. As mentioned before, letter 1058 is the final notice from the IRS to remind you that you still owe them. If you don’t resolve this delinquent matter quickly, the IRS will make an attempt to levy your bank accounts, garnish wages, and other assets that can be levied.
What Should You Do After You Receive IRS letter 1058?
The ideal possible reaction to the IRS letter 1058 is to pay the full amount you owe. However, most taxpayers can’t afford it, especially with all the added penalties and interest that have accumulated over time.
You may contact the IRS using the contact information provided on the 1058 IRS notice to ask about available options such as payment plans, an offer in compromise, or an installment agreement. If everything goes well, you will be able to avoid IRS tax levies.
What If I Do Not Agree With The Letter?
If you believe the 1058 IRS notice was sent as an error, you have the right to appeal it. Maybe you have appealed this matter before. However, this appeal is more formal than the previous ones. Alternatively, you may talk to a tax advisor regarding this matter.
What Happens If I Ignore This Letter?
The IRS may attach a levy to your income or personal bank account up to the amount you owe them. They may also file a Notice of Federal Tax Lien. A lien is a public notice to creditors that the government is entitled to your interests, and assets that you currently have as well as other assets acquired after the lien was filed. This may also affect your ability to get credit. It’s difficult to take out a loan once a federal lien appears on your credit report.
Based on your specific circumstances, your passport may be revoked or denied. Also, the IRS can levy properties such as personal assets, bank accounts, which include your vehicle and home. Social Security benefits and state tax refunds can be levied as well.
How To Make A Payment?
You make a check or money order payable to the United States Treasury and mail it to the address provided on the 1058 tax form. Include your Social Security number and Employer Identification number to help the IRS locate and apply the payment.
What Is The Best Time To Contact The IRS?
Now is a good time to resolve this matter, and to immediately pay the balance you owe the IRS by setting up a settlement agreement. It may be the best way to minimize your penalties and resolve this account. The sooner you contact the IRS, the better. Whatever you do, don’t ignore the 1058 IRS notice. At this point, the IRS can levy your wages, bank accounts, Social Security, tax refunds, and accounts receivable, and may even file a Notice of Federal Tax Lien.
Schedule A Consultation With Us
You may talk to a CPA in Miami regarding letter 1058 before contacting the IRS. If you can’t afford the balance now, calling the IRS to set up a payment agreement may not be the best alternative. If your situation demands it, hiring a tax accountant will get you in the best place to handle your tax debt and finances.
Based on your circumstances, a CPA in Pembroke Pines can help you appeal the amount due with the IRS, reverse penalties, and late fees, or set up a convenient payment plan. If you ignored every IRS notice mailed to you before, this is the one you should not ignore.
Information only / No Legal Advice Intended
This publication is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your own attorney, CPA, and/or another advisor regarding your specific situation.
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