Dealing with tax issues can be an overwhelming experience, particularly when the IRS gets involved. One of the most daunting communications you might receive from the IRS is Letter 1058, also known as the Final Notice of Intent to Levy and Notice of Your Right to a Hearing. This letter signals serious implications for your financial stability and requires prompt action. If you’re a resident of Greensboro, North Carolina, understanding what Letter 1058 entails and how to respond effectively can save you from significant financial distress.

Answering the Question: What Is Letter 1058 From The IRS And How Do I Respond?

What Is IRS Letter 1058?

IRS Letter 1058 is a formal notice sent by the Internal Revenue Service to inform taxpayers of its intent to levy (seize) their property or rights to property. This is typically the last warning before the IRS proceeds with a levy, which can include garnishing wages, seizing bank accounts, or taking other assets to satisfy unpaid tax debts. The letter also informs you of your right to request a Collection Due Process (CDP) hearing, which is a critical step in the process.

Key Points To Look For In An IRS Letter 1058

• Intent to Levy: The letter clearly states that the IRS intends to levy your property or rights to property.
• Amount Owed: It specifies the amount of tax debt, including penalties and interest.
• Right to a Hearing: You are informed of your right to request a CDP hearing within 30 days from the date of the letter.
• Deadline for Response: The 30-day deadline is crucial. Failing to respond within this period can result in the IRS proceeding with the levy.
• Payment Options: The letter may outline payment options or suggest contacting the IRS to discuss alternative arrangements.

Why Did I Receive An IRS Letter 1058?

Receiving Letter 1058 indicates that the IRS has attempted to collect the owed taxes through other means without success. Before issuing this final notice, the IRS typically sends multiple notices and demands for payment. If these attempts are ignored or unresolved, the IRS escalates to Letter 1058 as a last resort before initiating enforced collection actions.

How Should I Respond?

Step 1: Do Not Ignore the Letter

Ignoring IRS Letter 1058 can lead to severe consequences, including the seizure of your assets. It’s essential to take this notice seriously and act promptly.

Step 2: Verify the Details

Carefully review the letter to ensure the details are accurate. Check the amount owed, the tax years in question, and any previous communications you have received from the IRS. If there are discrepancies, gather any supporting documentation that can help clarify the issues.

Step 3: Request a Collection Due Process (CDP) Hearing

One of the most critical steps you can take is to request a CDP hearing within the 30-day window. To do this, complete Form 12153, Request for a Collection Due Process or Equivalent Hearing, and submit it to the IRS at the address provided in the letter. The CDP hearing is your opportunity to discuss your situation with an independent IRS officer and explore alternatives to the levy.

Step 4: Explore Payment Options

While awaiting your CDP hearing, it’s advisable to explore payment options. These may include:

• Installment Agreement: Proposing a monthly payment plan to settle your debt over time.
• Offer in Compromise (OIC): Negotiating to pay a reduced amount if you meet certain qualifications and cannot pay the full amount.
• Currently Not Collectible (CNC) Status: If you can demonstrate financial hardship, the IRS may temporarily halt collection activities.

Step 5: Seek Professional Assistance

Dealing with the IRS can be complex and intimidating. Seeking professional help from a tax resolution expert can provide you with guidance and representation, ensuring that you navigate the process effectively.

What Happens If I Ignore It?

Failing to respond to Letter 1058 can result in the IRS taking enforced collection actions against you. These actions can include:

• Wage Garnishment: The IRS can garnish a portion of your wages directly from your employer.
• Bank Levy: The IRS can freeze and seize funds from your bank accounts.
• Seizure of Assets: The IRS can seize and sell your property, such as real estate, vehicles, or other valuable assets.
• Tax Liens: The IRS can place a lien on your property, affecting your credit rating and the ability to sell or refinance your assets.

How Do I Prevent Future IRS Collection Actions

• File Timely and Accurate Tax Returns: Ensure that you file your tax returns on time and accurately report all income and deductions.
• Pay Taxes Owed Promptly: If you owe taxes, pay them promptly to avoid accruing interest and penalties.
• Communicate with the IRS: If you encounter financial difficulties, communicate with the IRS to discuss payment options or request extensions.
• Keep Detailed Records: Maintain accurate and detailed records of all communications with the IRS, as well as your tax filings and payments.

Contact Fresh Start Tax Resolution Today For Personal Tax Services In Greensboro, North Carolina

Dealing with IRS issues can be overwhelming and stressful. If you’ve received IRS Letter 1058 or are facing any other tax-related challenges, Fresh Start Tax Resolution is here to help. Our experienced team of tax resolution specialists, based in Greensboro, North Carolina, is dedicated to providing personalized solutions tailored to your unique situation. Don’t face the IRS alone—let us guide you through the complexities of tax resolution.

Reach out to Fresh Start Tax Resolution today to schedule a consultation. We’ll work with you to understand your situation, explore your options, and develop a plan to resolve your tax issues effectively. Whether you need assistance with requesting a CDP hearing, negotiating a payment plan, or exploring other tax relief options, our team is here to support you every step of the way. Contact us now and take the first step towards a fresh financial start.