Resolution Options and Tips for Taxpayers Who receive IRS Letter LT1058
IRS Letter LT1058 is almost identical to the IRS Letter LT11. These are serious notices sent via certified mail that alert you of the IRS’s plans to levy (seize) your property or rights to property. To protect your assets, you need to respond to this notice or take action within 30 days.
If you have questions or want help, the tax attorneys at The W Tax Group can help you respond to LT1058. We are extremely experienced with these letters, and we help taxpayers resolve IRS tax liabilities every day. To learn more, contact us today.
Difference Between LT11 and LT1058
The LT1058 is generally issued by Revenue Officers, whereas the LT11 is issued by the IRS Automated Collection Systems (ACS). In other words, if your case has been assigned to a Revenue Officer, you are more likely to receive LT1058 when the IRS plans to levy your assets. If your account has not yet been assigned to a Revenue Officer, you are more likely to receive LT1058. Generally, when your account is assigned to a revenue officer, you will receive IRS form 9297 to notify you of this.
How Long Do I Have to Respond to IRS LT1058?
Generally, you have 30 days from the date of the letter to respond. It is critical you respond to the IRS by the deadline on the notice. If you ignore this notice and miss the deadline, you could be subject to levies or seizures of the following assets:
- Your property or rights to property
- Wages and other income
- Bank accounts
- Business assets
- Personal assets
- Social Security benefits
- State and federal tax refunds.
The IRS can also alert the State Department. Then, you will not be able to get a new passport, and your current passport will be revoked. Interest and penalties will also accrue on your account.
How to Make Payment
To make full or partial payment of your tax liability, make your check or money order payable to the United States Treasury. The payment should be sent to the address at the top of the letter along with a copy of the letter. Make sure to write your Social Security Number or other taxpayer identification number on your payment. The amount due will appear at the bottom of the letter in a table.
What If I Disagree with Notice LT1058?
If you disagree with the amount due or other details on Notice LT1058, you can file an appeal by requesting a Collection Due Process Hearing. This must be done within 30 days from the date of the notice. The form will ask you what your basis for challenging the collection is. To have a successful appeal, you must handle this aspect of the process very precisely.
Unfortunately, filing the appeal and responding to the IRS after it’s filed can be a daunting task. To increase your chance of having the IRS respond favorably to your appeal, you may want representation from a tax professional with experience in situations like these.
If your case has been assigned to a Revenue Officer, you will need to complete Form 433A (Collection Information Statement for Wage Earners and Self-Employed Individuals), and if your case is in the Automated Collection Services, you may need to complete Form 433F (Collection Information Statement). These are both detailed financial statements that are required as part of the appeal process.
What If I Don’t Have the Money to Pay?
If you don’t have the money to pay, you may still be able to avoid liens, levies, or seizures by working out an arrangement with the IRS. This is a good time to leverage the experience of the tax attorneys at the W Tax Group. They can help you identify the best resolution option for your situation and negotiate the optimal arrangement with the IRS.
What to Do If You Can’t Pay Your Tax Liability on LT1058
If you’re unable to pay the balance, pay as much as you can. In either case, whether you can make a partial payment or no payment at all, you should contact the IRS to seek out an affordable arrangement based on your economic circumstances.
Here some are of the potential payment options. Follow the links or contact us directly to learn more and to see if you may qualify for any of these programs.
- Installment Agreement: This allows you to make monthly payments over a set period of years until your tax liability has been paid in full.
- Partial Pay Installment Agreement: This allows you to make monthly payments on the liability until the Collection Statute Expiration Date which is typically 10 years after the date the tax was assessed. With this option, you may end up paying less than you owe.
- Offer In Compromise: This is where the IRS agrees to allow qualifying taxpayers to settle their tax bill for less than the full amount owed. Generally, you must make a single lump-sum payment or several smaller payments within a short amount of time.
- Currently Non-Collectable: The IRS will not require you to pay your tax bill if it causes severe economic status. To get your account marked as currently not collectible, you need to prove to the IRS you cannot afford to pay both your living expenses and tax bill. Then, the IRS will reassess the situation every couple of years to see if anything has changed.
These tend to be the most popular IRS payment arrangements, but they are certainly not the only tax resolution options. When you contact us, we will talk with you about your situation and let you know about all of the possible options for your unique tax situation.
Get Help with LT1058 Today
To get help, contact us at The W Tax Group to talk with our team of experienced tax attorneys regarding this letter or any other tax problems. During your free tax case review, we can evaluate your situation and help you determine your next best steps. You can call us directly at (877) 500-4930