How to Respond to IRS Letter 1058
JW
Last updated 09/30/2020 by
Jessica WalrackYou can only owe money to the IRS for so long before they take action. IRS Letter 1058 is the final step in the process of levying your wages and/or seizing your property. So what should you do if you receive this letter? Remain calm. Here’s what you need to know.
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What is IRS Letter 1058?
IRS Letter 1058 is required by law in order for the IRS to collect assessed and unpaid tax liabilities via levy or seizure of property. It is sent by certified mail to the last address on record for a taxpayer.
Letter 1058 is a final notice so, in most cases, the IRS has already sent two or three prior notices. You have 30 days to file an appeal or otherwise respond before the IRS can take action.
How to respond to an IRS letter 1058
You have several response options when you receive this letter. You can:
1. Pay the amount you owe in full.
If you agree with the amount you owe and are able to pay it in full, follow the instructions on the letter to make your payment. You can usually do so online or by mail.
2. Contact the IRS to make payment arrangements.
If you agree with the proposed tax owed but cannot pay it, you need to contact the IRS to stop the collection proceedings. The IRS is often willing to negotiate a payment solution that suits your situation and prevents economic hardship. A tax relief firm can help you in this situation to get the most favorable outcome.
3. If you disagree with the amount you owe, you can file an appeal.
An appeal is filed via Form 12153 “Request for a Collection Due Process or Equivalent Hearing.” Letter 1058 will include the instructions of who to contact and what you need to do.
No matter which option you choose, it is important to respond by the deadline listed on the notice. If you don’t, the IRS can seize your property and levy your wages.
4. Consult with a tax relief expert.
It is a good idea to consult with a tax relief expert when dealing with the IRS, especially if there is a lien on your property. You may have tax relief options you didn’t consider. Choose a company that offers a free initial consultation and have tax lawyers on their staff.
What happens when you file an appeal?
When you file an administrative appeal with the IRS after receiving Letter 1058, your case will be sent from the IRS Collections office to the IRS Appeals office.
At this point, collection efforts stop and you have the opportunity to meet with a settlement officer to negotiate an alternate solution to the levy. After the appeal, you will receive a ‘Written Notice of Determination’ which explains the outcome of the appeal.
If it is in your favor, great. If not, you will have a window to petition the U.S. Tax Court.
Do you have questions about other IRS notices and letters? Read the definitive guide!
How can tax debt relief firms help?
Tax debt relief firms employ experts that know and understand tax laws. They can represent you when dealing with the IRS and can help to ensure you get the best outcome.
The IRS is concerned about getting as much money as possible from each taxpayer which doesn’t always work out best for the taxpayer. Tax debt relief firms can help to minimize the amount you owe and ease the whole process.
Review and compare industry-leading tax debt relief firms below.
JW
Jessica Walrack is a personal finance writer at SuperMoney, The Simple Dollar, Interest.com, Commonbond, Bankrate, NextAdvisor, Guardian, Personalloans.org and many others. She specializes in taking personal finance topics like loans, credit cards, and budgeting, and making them accessible and fun.
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