IRS LT11 Letter 1058 Final Levy Notice Explained with Transcripts

In 2023, the IRS issued millions of levy notices to taxpayers, showing how aggressively the agency pursues unpaid taxes. Among these, the IRS LT11 Letter 1058 Final Levy Notice stands out as one of the most serious warnings. It represents the last step before the IRS can directly act against taxpayers' wages, bank accounts, business assets, or even state tax refunds. For anyone who receives this letter, understanding what it means and how to respond is essential to protecting financial stability.

This notice is more than a routine reminder. The IRS’s official statement of its intent to levy under the Internal Revenue Code grants the agency legal authority to seize property if the taxpayer does not act quickly. The LT11 or Letter 1058 also comes with essential rights, including the opportunity to request a Collection Due Process hearing. However, these protections are time-sensitive. Missing the 30-day deadline for requesting a hearing can result in lost appeal rights and immediate levy actions that are difficult to reverse.

This article provides a clear guide to the LT11/Letter 1058. We will explain what the notice means, why it is issued, and what steps you must take to prevent collection actions. You will learn how the IRS collection process unfolds, how to use transcripts to verify your tax debt, and what payment arrangements or collection alternatives are available. The goal is to help you understand the risks of ignoring the notice and the options you have to resolve your tax debt. Acting quickly and making informed decisions can mean the difference between keeping your assets safe and facing painful enforced collection.

What is the IRS LT11 Letter 1058 Final Levy Notice?

The IRS LT11 Letter 1058, also called the Final Levy Notice, is one of the most serious collection letters the IRS issues. Unlike earlier reminders, this letter is not just a payment request. It is a legal notification that the IRS intends to levy: the agency may seize wages, bank accounts, business assets, and personal assets if the debt is not resolved within the given timeframe. The notice serves two purposes. First, it warns that your outstanding tax balance is at risk of enforced collection. Second, it provides your legal right to a hearing before levy action begins.

Legal Authority

Under Internal Revenue Code Section 6331(d), the IRS must provide written notice at least 30 days before it can levy. This requirement ensures taxpayers have one last chance to pay, set up payment arrangements, or challenge the IRS’s collection action. The LT11 and Letter 1058 are essentially identical documents. Each is titled “Final Notice of Intent to Levy and Notice of Your Right to a Hearing.” They are usually sent by certified mail or registered mail to guarantee delivery.

Why This Notice Matters

This is the last warning before collection actions begin. Ignoring it can quickly result in bank levies, wage garnishment, or the filing of a federal tax lien that becomes part of your public record. While the notice is intimidating, it also presents a chance to protect your financial situation. Responding within 30 days allows you to request a Collection Due Process (CDP) hearing, propose an installment agreement, or explore other payment options. The IRS LT11 Letter 1058 Final Levy Notice represents the final legal step before the IRS can seize property. It is not a letter to postpone or ignore. Immediate action, supported by accurate documentation and sometimes professional guidance, is critical to preserving your rights and avoiding painful consequences.

How IRS Collection Notices Progress Before LT11

Before issuing the IRS LT11 Letter 1058 Final Levy Notice, the IRS follows a structured sequence of collection notices. Each step escalates the seriousness of the taxpayer’s situation, providing multiple opportunities to resolve the outstanding tax balance before enforced collection begins.

The Step-by-Step Notice Process

The IRS typically sends a series of notices in this order:

1. CP14 - Initial Notice and Demand: This is the first letter informing you of unpaid taxes. It requests payment within 10 days. Failure to respond leads to additional notices.
   
   
2. CP501 - First Reminder: Sent about 8 weeks later, this reminder reminds you of the balance due. The IRS is signaling continued concern about your unpaid taxes.
   
   
3. CP503 - Second Notice: This is another firm reminder. It stresses that the IRS will pursue further action if no payment arrangements are made.
   
   
4. CP504 - Urgent Balance Due: This is the “Final Balance Due Notice.” It warns that the IRS may levy state tax refunds or take other action. However, it does not authorize the seizure of bank accounts or personal assets.
   
   
5. LT11/Letter 1058 - Final Notice: Issued about five weeks after CP504, this notice gives the IRS the legal authority to proceed with levy actions if you fail to respond.

Each notice builds on the last, giving taxpayers time to resolve their delinquent tax debt. By the time LT11 was issued, the IRS had documented several prior attempts to collect.

Comparison Table: CP504 vs LT11

CP504 Notice

• Title: Urgent! Final Notice – Balance Due
• Authority: This notice alone does not authorize the IRS to levy your property.
• Appeal Rights: You may request a review through the Collection Appeals Program (CAP).
• Response Deadline: You typically have 10 days to make payment before further action may be taken.
• Court Review: No Tax Court review is available under this notice.
• Collection Pause: There is no automatic stay of IRS collection actions once this notice is issued.

LT11 / Letter 1058

• Title: Final Notice of Intent to Levy and Notice of Your Right to a Hearing
• Authority: This notice authorizes the IRS to levy assets after 30 days, unless action is taken.
• Appeal Rights: You are entitled to a Collection Due Process (CDP) hearing, which is a formal legal process.
• Response Deadline: You have 30 days to request a CDP hearing.
• Court Review: Tax Court review is available if you disagree with the IRS decision after the CDP hearing.
• Collection Pause: IRS must pause collection efforts while the CDP hearing is pending.

Why This Sequence Matters

Understanding the notice progression helps taxpayers identify how close they are to enforced collection. While earlier notices allow flexible resolution, the LT11 represents the point where immediate action is required. Once this final notice is sent, the IRS can move quickly to garnish wages, levy bank accounts, and pursue collection actions unless the taxpayer responds with a valid plan or hearing request.

Legal Authority and Your Rights

The IRS LT11 Letter 1058 Final Levy Notice is not just an administrative form. It fulfills specific legal requirements under the Internal Revenue Code, ensuring taxpayers receive due process before the IRS enforces collection.

The Internal Revenue Code Requirement

Under IRC Section 6331(d), the IRS cannot levy property without sending a written notice at least 30 days in advance. The LT11/Letter 1058 serves this role. It gives taxpayers one final opportunity to resolve their delinquent tax debt or contest the proposed collection action. This legal requirement is more than a formality. It reflects constitutional due process principles, giving taxpayers both awareness and a chance to respond before serious collection steps such as bank account levies or wage garnishment.

Right to a Collection Due Process Hearing

The notice grants you the right to request a Collection Due Process (CDP) hearing. By filing Form 12153 within 30 days, you can present your case before the IRS Independent Office of Appeals. During this process hearing, you may:

• Challenge the underlying tax liability if you have not had a prior opportunity.
  
  
• Propose collection alternatives such as installment agreements or other payment arrangements.
  
  
• Demonstrate financial hardship that makes collection unreasonable.

While your CDP request is pending, the IRS generally prohibits further collection actions. This pause allows you to argue your position without immediate risk of levy.

Appeal Rights Beyond the IRS

If the Appeals Officer upholds the IRS’s levy action, you retain the right to petition the Tax Court. This step provides judicial review, offering an independent forum to evaluate whether the IRS followed the law and whether your circumstances warrant relief. You may also request an equivalent hearing if you miss the 30-day deadline. While this preserves some protections, it does not allow Tax Court review. Acting within the original timeframe is critical to protect full rights. The legal framework behind the LT11/Letter 1058 ensures taxpayers are not left without recourse. You have structured opportunities to protect current assets and argue for fair treatment between the notice, CDP hearing, and potential Tax Court review. 

Eligibility and Triggers for Receiving LT11/Letter 1058

The IRS LT11 Letter 1058 Final Levy Notice is not sent to every taxpayer who owes money. It is issued only when certain conditions are met and prior collection attempts have failed. Understanding why the IRS issues this notice can help you prepare and respond effectively.

Who Receives the Notice

Taxpayers are most likely to receive this notice if they:

• Have an outstanding tax balance after receiving several earlier IRS notices. The IRS escalates only when prior demands for payment remain unanswered.
  
  
• Did not make payment arrangements or defaulted on a prior agreement. Failure to maintain compliance triggers stronger collection measures.
  
  
• Have unresolved unpaid taxes from audits, penalties, or substitute returns. In these cases, the IRS has already assessed liability.
  
  
• Owe taxes still within the statute of limitations for collection. The IRS cannot issue a levy once the 10-year period under the Internal Revenue Code expires.

Common Triggers

Several scenarios often lead to an LT11/Letter 1058 notice:

1. Unfiled Returns: If you fail to file, the IRS may prepare a substitute return, assess tax, and proceed to collect.
   
   
2. Audit Adjustments: After an examination, additional taxes may be assessed. If unpaid, this debt becomes subject to levy.
   
   
3. Penalty Assessments: Failure-to-file, failure-to-pay, or payroll deposit penalties can create debt that escalates to levy status.
   
   
4. Business Liabilities: Owners can be held responsible for employment taxes, known as trust fund recovery penalties.
   
   
5. Amended Returns: Filing corrections that increase liability can create a new delinquent tax debt subject to collection.

What the IRS Considers

Before issuing an LT11 notice, the IRS checks key requirements:

• The assessment is valid and based on the law.
  
  
• A prior notice of federal tax and demand for payment has been sent.
  
  
• The collection statute is still open.
  
  
• No prior process hearing has resolved the issue.

This notice means the IRS has determined that your debt is valid, enforceable, and overdue. Whether the balance stems from individual income taxes, business assets, or penalties, the LT11 indicates that enforced collection is imminent unless you act.

Step-by-Step Response Plan

Receiving the IRS LT11 Letter 1058 Final Levy Notice requires swift and organized action. Following a structured plan will help you protect your property, meet legal deadlines, and demonstrate good faith to the IRS.

Step 1: Verify the Notice Authenticity (Within 24 Hours)

Before taking further steps, confirm that the letter is legitimate.

• Check for the official IRS logo, return address, and your correct taxpayer identification number.
  
  
• Ensure the amounts and tax years match your records.
  
  
• Watch for red flags such as demands for payment by gift card, wire transfer, or cryptocurrency. These are signs of scams, not IRS collection actions.

Step 2: Obtain Your IRS Transcripts (Within 48 Hours)

IRS transcripts allow you to understand the complete picture of your tax debt. Common types include:

• Account Transcript: Shows payments, penalties, interest, and current balance.
  
  
• Tax Return Transcript: Provides a summary of your filed return.
  
  
• Wage and Income Transcript: Lists income reported by employers and financial institutions.

You can access transcripts by creating an online IRS account, calling the IRS, or submitting Form 4506-T by mail.

Step 3: Calculate Your Critical Deadlines

Mark your calendar immediately:

• You have 30 days from the date on the notice to request a Collection Due Process hearing.
  
  
• Determine your Collection Statute Expiration Date (CSED), which marks when the IRS can no longer pursue enforced collection.
  
  
• Check your Assessment Statute Expiration Date (ASED) to confirm whether additional assessments are still possible.

Step 4: Analyze Your Options (Within 7 Days)

Once you know your balance and deadlines, evaluate your options:

1. Pay in Full: The fastest way to stop collection and close the case.
   
   
2. Installment Agreement: Spread payments over time. This avoids levy but requires consistent compliance.
   
   
3. Offer in Compromise:  If you can prove your inability to pay, settle your debt for less than the full balance.
   
   
4. Currently Not Collectible Status: The IRS may temporarily halt collection if you face financial hardship.
   
   
5. Other Payment Arrangements: Options like partial payment installment agreements can also provide relief.

Step 5: File Form 12153 to Request a CDP Hearing (Within 30 Days)

To preserve your rights, complete and submit Form 12153:

• Include your name, address, tax periods, and reasons for requesting the hearing.
  
  
• State the resolution you seek, such as a payment plan or challenge to the liability.
  
  
• Send the form by certified mail to confirm timely filing.

Supporting documents are critical. This may include Form 433-A (individual financial statement), Form 433-B (business financial statement), and bank or income records.

Step 6: Continue Communication and Compliance (Ongoing)

After filing, remain in contact with the IRS:

• Respond promptly to correspondence.
  
  
• File current returns on time to avoid further issues.
  
  
• Make payments if you have agreed to an arrangement. Consistency shows the IRS that you are acting in good faith.

Comparison Table: Collection Alternatives

Installment Agreement

• When It Applies: For taxpayers who are able to make consistent monthly payments.
• Pros: Helps avoid levies by breaking debt into manageable monthly amounts.
• Cons: Interest and penalties continue to accrue until the full balance is paid.

Offer in Compromise

• When It Applies: For taxpayers who cannot pay their full tax debt without experiencing financial hardship.
• Pros: May allow the taxpayer to settle for less than the total owed, offering a financial reset.
• Cons: Involves a rigorous financial review and is not guaranteed to be accepted.

Currently Not Collectible

• When It Applies: For taxpayers undergoing severe financial hardship who cannot pay at all.
• Pros: Halts IRS collection actions and levies temporarily.
• Cons: Debt remains active and continues to grow with interest; the status is subject to change if financial circumstances improve.

Acting within the notice’s 30-day window is essential. The LT11/Letter 1058 is a turning point: you either resolve the issue with payment options or risk losing wages, bank accounts, and property. Structured steps, accurate documentation, and timely responses give you the strongest chance of avoiding levy actions.

Common Mistakes to Avoid

Many taxpayers lose valuable rights or face unnecessary hardship because they mishandle the IRS LT11 Letter 1058 Final Levy Notice. Avoiding these common errors can protect your assets and improve your chances of resolving tax debt successfully.

1. Ignoring the Notice

• Some taxpayers mistakenly assume the IRS will stop pursuing them if they ignore letters. In reality, doing nothing almost always leads to legal actions.
  
  
• Once the 30-day window passes, the IRS may seize bank accounts, garnish wages, and file a federal tax lien that damages your credit and becomes a public record.

2. Missing the 30-Day CDP Deadline

• The deadline to request a Collection Due Process hearing is strict. Missing it reduces your options to an equivalent hearing, which does not allow Tax Court review.
  
  
• Filing by certified or registered mail ensures your request is dated correctly and accepted by the IRS.

3. Submitting Incomplete Documentation

• Filing Form 12153 without supporting financial statements weakens your case. IRS Appeals Officers require clear proof of your financial situation.
  
  
• Always include bank records, pay stubs, or Forms 433-A/B when proposing payment plans or claiming financial hardship.

4. Confusing Appeal Programs

• Taxpayers sometimes file for CAP (Collection Appeals Program) and CDP simultaneously, creating unnecessary delays.
  
  
• Each program has its place: CAP is faster but limited, while CDP offers stronger protections, including the right to Tax Court review.

5. Proceeding Without Professional Help

• IRS levy cases can be complex, especially when involving multiple tax years, business assets, or prior appeals.
  
  
• A qualified tax professional can help you navigate procedures, present evidence, and avoid procedural errors that could cost you necessary rights.

6. Mixing Old and New Tax Issues

• Some taxpayers attempt to dispute tax periods that are not listed on the LT11 notice. This mistake can cause confusion and delay resolution.
  
  
• Focus your CDP request only on the tax years covered by the notice. Other years must be handled separately through the IRS collection process.

Mistakes like ignoring deadlines, sending incomplete forms, or skipping professional advice can turn an already serious notice into a financial disaster. Use the LT11/Letter 1058 as an opportunity to respond strategically and secure the best outcome available.

Consequences of Ignoring the LT11 Notice

Failing to act on the IRS LT11 Letter 1058 Final Levy Notice has severe and often immediate results. Once the 30-day response window closes, the IRS can move forward with enforced collection against your property and income.

Seizure of Income and Assets

• The IRS can garnish wages, leaving only a small exempt portion of your paycheck. This can disrupt monthly living expenses and financial stability.
  
  
• Bank accounts may be frozen and drained. Once funds are seized, they are extremely difficult to recover.
  
  
• Business assets and personal assets such as vehicles, equipment, or rental properties may also be levied to cover unpaid taxes.

Liens, Certifications, and Refund Seizures

• A federal tax lien may be filed, attaching to property you own now and in the future. This becomes part of your public record and can affect your creditworthiness.
  
  
• If your seriously delinquent tax debt qualifies, the IRS can request passport certification from the State Department, limiting your ability to travel internationally.
  
  
• State refunds, including state tax refunds and Alaska Permanent Fund Dividends, can be intercepted and applied to your tax debt.

Impact on Benefits and Financial Security

• The IRS can levy certain social security benefits, although a limited portion may be protected.
  
  
• Other income sources, such as contractor payments or rental income, are also subject to levy.
  
  
• These actions create ongoing financial strain that is difficult to reverse without legal or administrative relief.

Why Inaction is Risky

Ignoring the LT11 is one of the most costly mistakes a taxpayer can make. Once levy actions begin, appealing or negotiating becomes more difficult. While collection alternatives such as installment agreements or offers in compromise remain possible, the damage to your finances, credit, and daily life may already be significant. The LT11/Letter 1058 is designed to warn taxpayers of these consequences before they occur. You can stop levy actions and explore solutions by responding within the deadline. Ignoring it guarantees aggressive collection that affects wages, property, and even your passport.

Frequently Asked Questions (FAQs)

What happens if I receive a federal tax lien after a Final Notice?

A federal tax lien is a legal claim against your assets and future property. It often follows a Final Notice when the balance remains unpaid. The lien becomes a public notice, alerting creditors to the IRS’s claim. While you still have collection appeal rights, ignoring the lien risks long-term damage to your credit and finances. Taking steps to resolve overdue taxes quickly can prevent escalation.

How does the Collection Due Process CDP hearing protect me?

A Collection Due Process CDP hearing gives you the right to challenge an IRS levy or lien before it takes effect. Filing Form 12153 within 30 days pauses most collection actions. You can propose alternatives like payment plans or discuss hardship issues during the hearing. The IRS Independent Office of Appeals reviews your case, and if necessary, you can petition the Tax Court. These safeguards were strengthened under the Fixing America’s Surface Transportation Act.

Why is the Final Notice so crucial in the IRS collection process?

The Final Notice is crucial because it gives the IRS legal authority to proceed with enforced collection. Once this IRS letter is issued, the IRS can levy wages, seize other property, and intercept state tax refunds. While frightening, it also grants you appeal rights, including the chance to request a hearing. Acting immediately—even choosing to apply online for a payment plan—can protect your assets and keep options open.

What does an IRS levy mean for taxpayers?

An IRS levy allows the government to seize property to satisfy overdue taxes legally. This can include wages, bank accounts, or other property. You have a limited time to respond once the IRS sends a levy notice. Levy actions are aggressive and disruptive, but taxpayers retain collection appeal rights. You can stop or limit the levy and explore other payment arrangements by addressing the notice quickly and seeking alternatives.

What is the difference between a Notice of Intent to Levy and other IRS letters?

A Notice of Intent to Levy is stronger than earlier balance-due letters. Unlike reminders, it signals that a levy action is imminent unless you act. This IRS letter provides a final chance to request a hearing or arrange payment. Other IRS correspondence may remind you of a balance. However, under the act legislation, like the FAST Act, the Final Notice becomes a pivotal step that triggers taxpayer protections and obligations. 

Can I discuss alternatives with the IRS after receiving a Final Notice?

Even after receiving a Final Notice, you may discuss alternatives with the IRS to avoid enforced collection. These options can include installment agreements, offers in compromise, or temporary suspension due to hardship. While the IRS has strong authority to pursue overdue taxes, it also encourages taxpayers to resolve debts through manageable solutions. Acting promptly preserves more options and demonstrates willingness to cooperate, which can prevent aggressive levy actions.

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