An IRS Letter 1058 for Intent to Seize Property
It seems as if the IRS has a “CP Notice” or “Letter” for nearly any type of tax situation that may arise. For example, the CP15 Notice is used to inform the Taxpayer that a Penalty has been issued; a CP518 Notice is used to report that the Tax Return is not on file, and a CP504 Notice is used to report that a Final Payment amount is due and owing – the latter can result in a Notice of Federal Tax Lien or Levy of a Bank Account or Wages. Letter 1058 is a more serious situation that Taxpayers may find themselves in since Letter 1058 refers to an actual intent to Seize Property. With an intent to seize a Taxpayer’s Property (or rights to a property), it is the Internal Revenue Service putting the Taxpayer on notice that the IRS has reached its final straw.
As provided by the IRS:
Understanding Your LT11 Notice or Letter 1058
What this notice or letter is about
We haven’t received your payment for overdue taxes. We intend to seize your property or rights to property. You must contact us immediately.
What you need to do
- Pay your unpaid balance: When you pay your balance in full, we’ll stop adding interest and applicable penalties. You can quickly and easily, pay your balance online. See “Finding out how much you owe” to learn how to determine your balance. If you can’t pay the full amount, pay what you can now; payments will reduce the amount of interest and applicable penalties added to the remaining balance in the future. If you’re current on your tax filings, you can request an installment agreement to pay the remaining balance on your account over time.
NOTE: If you owe less than $50,000, you may be able to set up an installment agreement using the Online Payment Agreement tool, which is the fastest way to get an installment agreement approved. If you can’t apply online, call us at the number on your notice or letter, or mail in an installment agreement request.
- If you already paid in full or think we haven’t credited a payment, send proof of that payment to us using the address at the top of your notice or letter.
- If you’re unable to pay the balance due, contact the telephone number listed on the notice or letter.
You may want to
Request an appeal to the proposed levy action by following the instructions on the letter. See Collection Due Process (CDP) FAQ page for more information.
Frequently Asked Questions
What happens if I don’t respond to this notice of letter or don’t pay?
We can attach a levy to your wages or bank accounts up to the amount owed. We may also file a Notice of Federal Tax Lien. A lien is a public notice to your creditors that the government has a right to your interests in your current assets and any assets you acquire after we file the lien; it can affect your ability to get credit.
You may also be subject to the Fixing America’s Surface Transportation (FAST) Act legislation, which generally prohibits the State Department from issuing or renewing a passport to a taxpayer with seriously delinquent tax debt. Additional information on passport certification is available at IRS.gov/passports
What kinds of property can the IRS levy?
Property can include wages and other income, bank accounts, business assets, personal assets (including your car and home), Alaska Permanent Fund Dividends and state tax refunds, and Social Security benefits.
Can I appeal the balance due?
You may request a Collection Due Process hearing. See the notice or letter for directions. See Collection Due Process FAQ page for more information.
Tax publications you may find useful
About our International Tax Law Firm
Golding & Golding specializes exclusively in international tax and specifically, IRS offshore disclosure.
Contact our firm today for assistance.