IRS Letter 1058 – Final Notice of Intent to Levy

An IRS Letter 1058 notice can leave taxpayers feeling anxious. This is the final notice of intent to levy from the Internal Revenue Service, which means the agency is preparing to take collection action against your property, wages, or bank accounts. It is one of the most serious notices the IRS sends because it grants them legal authority under the Internal Revenue Code to enforce payment of overdue taxes.

When this letter arrives, the IRS has already determined that you have an unresolved tax liability and an unpaid balance. Ignoring it puts your personal assets, business assets, and other income at risk. The notice also explains your right to a hearing through the IRS Independent Office of Appeals, which generally prohibits collection activity until your case has been reviewed.

Even though the letter is a final notice, you still have options. Acting quickly can help you protect your taxpayers’ wages, prevent a levy on your bank accounts, and stop additional penalties from being added. The sooner you respond, the more opportunities you have to manage your tax debt through voluntary payment, an installment agreement, or other forms of relief.
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What is IRS Letter 1058?

IRS Letter 1058, also called the Final Notice of Intent to Levy, is a formal warning from the Internal Revenue Service. It tells you that the IRS intends to seize property or rights to property to collect delinquent tax debt. The notice also explains your right to a hearing before any enforced collection occurs.

Essential points about IRS Letter 1058:

• Final notice before levy: This is the IRS's last letter before taking collection actions such as wage garnishment, bank account levy, or property seizure.
  
  
• Thirty-day response period: You generally have 30 days from the date of the notice to request a collection due process hearing or make arrangements to pay.
  
  
• Right to appeal: The letter includes your right to a hearing with the IRS Independent Office of Appeals, which generally prohibits collection until the hearing process is complete.
  
  
• Based on unpaid balance: The notice is issued after the IRS confirms that you still owe an overdue balance from previous tax periods.
  
  
• Part of the Internal Revenue Code: This notice is authorized by Internal Revenue Code section 6330, which governs taxpayer protections before levy action.
  
  
• Serious consequences for ignoring: Failure to respond may lead to a federal tax lien, continuous levy on the taxpayer’s wages, seizure of business assets, or even passport certification under the Fixing America’s Surface Transportation Act legislation.

Why This Notice Matters

IRS Letter 1058 is not a routine bill. It is a legal levy notice that triggers the government’s authority to seize property and collect overdue taxes. Once this final notice is issued, the Internal Revenue Service has broad powers to enforce payment under the Internal Revenue Code.

Key reasons this notice is important:

• Legal authority to act: Once the 30-day window has passed, the IRS can levy bank accounts, garnish taxpayers' wages, seize personal or business assets, and intercept state tax refunds.
  
  
• Limited response time: You have a short period to request a collection due process hearing, apply for an installment agreement, or make a voluntary payment before enforcement begins.
  
  
• Impact on daily life: A levy may freeze current assets in your bank accounts, reduce social security benefits, or restrict access to other income needed for basic expenses.
  
  
• Public record consequences: Ignoring the notice can result in a federal tax lien, a public notice of delinquent tax debt that damages credit and complicates future tax filings.
  
  
• Travel restrictions: Under the surface transportation FAST Act legislation, the State Department may deny or revoke a passport if the IRS certifies you as a taxpayer with seriously delinquent tax debt.

Consequences of Ignoring IRS Letter 1058

When the IRS issues a final notice of intent to levy, the stakes are high. If you do not respond within the required timeframe, the IRS may enforce collection using its broad powers under the Internal Revenue Code. These actions can affect both personal and business assets, creating long-term financial stress.

Possible outcomes of not responding:

• Wage garnishment: The IRS can place a continuous levy on taxpayers' wages, leaving only the exempt amount for living expenses. This may cause serious strain if your remaining balance does not cover household needs.
  
  
• Bank account levy: Funds in your bank accounts may be frozen immediately, and after the 21-day holding period, the IRS can apply them toward your unpaid balance. Multiple accounts and current assets can be affected at the same time.
  
  
• Property seizure: The agency may seize property, exempt and non-exempt, including vehicles, real estate, or business assets. Even Alaska Permanent Fund Dividends and state tax refunds can be subject to levy.
  
  
• Federal tax lien: A lien becomes a public notice of delinquent tax debt, damaging credit scores and limiting access to new loans or financing. It also attaches to property you own and acquire in the future.
  
  
• Passport restrictions: Under the Fixing America’s Surface Transportation Act legislation, the IRS may certify a taxpayer with seriously delinquent tax debt to the State Department. This can result in passport certification or revocation.
  
  
• Penalties and interest: Applicable penalties are added each month, and interest charges increase the overall tax liability. The Internal Revenue Manual notes that these charges continue until the tax period is resolved in full.

Step-by-Step Relief Options

Even after receiving a final notice of intent to levy, the Internal Revenue Service offers several ways to resolve delinquent tax debt. Taking action quickly can prevent the seizure of personal assets, protect bank accounts, and stop additional applicable penalties from being added to your unpaid balance.

Pull IRS transcripts

• Verify your tax liability: Transcripts confirm your tax filings, tax period details, remaining balance, and applicable penalties added to your account.
  
  
• Ways to obtain records: You can apply online through the IRS website, call the telephone number listed on the notice, or complete Form 4506-T to receive documents by mail.
  
  
• Why it matters: Reviewing transcripts ensures the levy source and tax liability are accurate before you arrange payment.

[Request Your IRS Transcripts Today]

Payment plans (installment agreements)

• Short-term option: A voluntary payment plan is available for balances that can be paid within 120 days.
  
  
• Long-term option: The IRS approves an installment agreement that distributes larger balances over monthly payments.
  
  
• Application process: Taxpayers may apply online or call the telephone number listed on the levy notice to submit financial information and request approval.
  
  
• Benefit: Once approved, an installment agreement generally prohibits enforced collection, which stops wage garnishment and bank levies.

Offer in Compromise (OIC)

• Settle for less: An OIC allows you to resolve your tax liability for less than the full unpaid balance if you meet eligibility criteria.
  
  
• Qualification factors: You may qualify if you face economic hardship, cannot pay within a reasonable time, or have a legitimate dispute over the correct amount owed.
  
  
• Process: To apply, you must complete Form 656, send proof of financial hardship with supporting documents, and pay the required application fee unless you qualify for a waiver.
  Penalty abatement

• First-time relief: If you have a clean compliance history, you may qualify for first-time abatement without filing extra forms.
  
  
• Reasonable cause: You can request relief when serious illness, natural disasters, or other unexpected events make timely tax filings impossible.
  
  
• How to request: To pursue this option, you may submit a written statement, call the telephone number on the notice, or complete Form 843 to ask for a reduction of penalties.

Collection Due Process hearing

• Right to appeal: You may request a collection due process hearing within 30 days of the final notice date.
  
  
• Independent review: The IRS Independent Office of Appeals handles the hearing, which generally prohibits collection until the process hearing concludes.
  
  
• Escalation: If you disagree with the outcome, you may bring your case to the United States Tax Court for further review.
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Currently Not Collectible (CNC) status

• Temporary relief: CNC status applies when enforced collection would cause economic hardship by leaving you without the exempt amount needed for basic living expenses.
  
  
• Requirements: To qualify, you must send proof of income and expenses, usually by completing Form 433-F.
  
  
• Considerations: While interest and penalties continue to accrue, the IRS suspends collection until your financial situation improves.

Professional Help and Resources

Navigating IRS Letter 1058 alone can feel overwhelming, especially if facing a significant unpaid balance or complex tax filings. Professional assistance ensures that your rights are protected and that you explore every option for relief under the Internal Revenue Code.

When professional assistance makes sense

• Large or complex debts: Professional help is strongly recommended if your delinquent tax debt involves business assets, multiple tax periods, or substantial applicable penalties added to your account.
  
  
• Offer in Compromise cases: Tax professionals can evaluate whether you qualify for settlement programs and guide you through completing Form 656 and supporting documentation.
  
  
• Collection Due Process hearing: An experienced representative can prepare your case for the Independent Office of Appeals and, if necessary, represent you in the United States Tax Court.
  
  
• Jeopardy levy or hardship situations: Professionals can help show economic hardship, provide required financial records, and request relief, such as a not collectible status.
  
  
• Reducing stress and errors: Expert guidance ensures that your paperwork is accurate, deadlines are met, and communication with the Internal Revenue Service is handled correctly.

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Frequently Asked Questions

How much time do I have to respond to IRS Letter 1058?

You generally have 30 days from the date on the final notice to act before the Internal Revenue Service can begin enforced collection. This period allows you to request a collection due process hearing, apply for an installment agreement, or make voluntary payment arrangements. Responding as soon as possible increases your chances of protecting property exempt from levy and reduces additional applicable penalties added to your unpaid balance.

Can the IRS levy my bank accounts or Social Security benefits?

Yes, the IRS can levy bank accounts and Social Security benefits if you do not respond to the notice of intent. A bank levy freezes funds for 21 days before applying them toward your delinquent tax debt. A continuous levy may also be placed on monthly Social Security benefits, leaving only the exempt amount. Taking quick action can prevent or stop these levies before they take effect.

Will an installment agreement stop the levy?

Yes, once an installment agreement is approved, the IRS generally prohibits enforced collection, which includes wage garnishment, bank account levy, and seizure of personal assets. An agreement allows you to make monthly voluntary payments on your tax liability until the remaining balance is resolved. Applying online or through the telephone number on the levy notice ensures faster processing and confirmation of your payment arrangement.

What if I face economic hardship?

If paying your tax debt would create economic hardship, you may qualify for currently not collectible status. This status suspends levy actions against your taxpayer’s wages, current assets, and other income while you provide proof of expenses. Although interest and applicable penalties continue to accrue, collection is temporarily halted. The Internal Revenue Service reviews your case periodically to determine whether your financial situation has improved enough for repayment.

Can I challenge my tax liability in the United States Tax Court?

Yes, you may challenge your tax liability in the United States Tax Court if you disagree with the outcome of a collection due process hearing. First, you must complete Form 12153 to request a process hearing with the IRS Independent Office of Appeals. If the Independent Office upholds the liability, you can escalate the case further to the tax court for a more formal and binding decision.

What happens if I ignore the notice of intent?

Ignoring the final notice of intent to levy can trigger serious collection actions. The IRS may garnish taxpayers’ wages, freeze bank accounts, seize property, or file a federal tax lien as a public notice of delinquent tax debt. In addition, under the Fixing America’s Surface Transportation Act legislation, your passport may be denied or revoked. Responding immediately provides opportunities to negotiate payment plans or other relief programs.

How do I request a collection due process hearing?

To request a collection due process hearing, complete Form 12153 and submit it within 30 days of receiving IRS Letter 1058. This process hearing allows the Independent Office of Appeals to review your case before levy action proceeds. While the appeal is pending, the IRS generally prohibits enforced collection. Providing accurate financial information and supporting documents helps strengthen your position during the hearing process.

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