Imagine this: Waking up one day to find that the IRS is about to take your hard-earned money. If you’ve received Letters 1058 or LT11 from the IRS, that nightmare is closer than you think. These letters are signals that your assets, from your bank accounts to your wages, could be seized.
Many people freeze at this point, overwhelmed by the thought of losing their assets. You might feel cornered, helpless, and unsure of what to do next. The clock is ticking, and with every day of inaction, you’re one step closer to losing your financial security. Without the right response, you could face devastating consequences, like bank levies or wage garnishments. But here’s the worst part—many don’t even know how to fight back.
The good news is, you do have options. Whether you set up a payment plan, submit an Offer in Compromise, or work with a tax professional, you can protect your assets and stop the levy in its tracks.
Read along to know what IRS Notice to Levy means, why you received it, and how to respond to Letters 1058 & LT11. Protect your assets and take action now.
Read More: Effective Installment Agreements Solutions for IRS Tax Relief
What is a Notice of levy?
An Notice of Intent to Levy IRS is one of the IRS’s primary tools used to inform a taxpayer that the government is preparing to seize specific assets, such as bank accounts, wages, or real estate, to satisfy overdue tax debt. This action is only taken after the taxpayer fails to address previous notices and warnings about unpaid taxes. Typically, IRS Final Notice (often referred to as Letter 1058) is a final warning before enforcement begins. This last notice gives the taxpayer 30 days to resolve the issue or face the consequences of asset seizure through a levy.
The IRS deadline is approaching faster than you realize!
When you receive a levy notice from IRS, time becomes your most valuable asset. Here’s what the timeline usually looks like:
- Receipt of Notice CP501: Once you get the letter, the clock starts ticking. The IRS typically gives you 30 days from the date on the notice to respond.
- Response Period: During this period, you can address the issue by paying the tax debt, setting up a payment plan, or filing an appeal.
- IRS Action: If you don’t contact them within 30 days, the IRS can move forward with seizing your assets or taking wages directly from your paycheck.
But don’t worry, an IRS consultant can help you stop a Notice of Levy before it leads to asset seizures. With their expert guidance, you can explore options like payment plans or settlements, protecting your assets, and securing your financial future.
Are LT11 and Letter 1058 the Same?
Yes, LT11 and Letter 1058 are essentially the same, both serving as a Final Notice of Intent to Levy. The key difference is that LT11 is a shorter version, but both letters convey the same critical message: the IRS plans to levy your assets due to unpaid taxes.
Both notices inform the taxpayer of their right to a Collection Due Process (CDP) hearing within 30 days. If no action is taken within that timeframe, the IRS may proceed with enforcing the levy or file a Notice of Federal Tax Lien on your property.
Reasons You May Receive a Notice of Intent to Levy
An IRS Notice of Intent to Levy is not something that appears out of nowhere. Typically, the IRS will have sent prior notice CP501 before resorting to such drastic measures. Some of the common reasons you may receive this notice include:
- Unpaid Taxes: The most common reason is failing to pay taxes owed. If you’ve neglected to settle your tax debt, the IRS will issue a notice as part of their collection process.
- Failure to Respond to Previous Notices: Before sending a Notice of Intent to Levy, the IRS typically sends earlier warnings such as CP501 or CP503. Ignoring these notices can lead to escalation, resulting in a levy notice.
- Unfiled Tax Returns: If you haven’t filed your required tax returns, the IRS may file a substitute return on your behalf. This can result in a tax debt you weren’t expecting, and if not paid, a notice of levy will follow.
- Defaulting on a Payment Plan: If you’ve entered into an installment agreement but fail to make the agreed-upon payments, the IRS may terminate the plan and proceed with issuing a notice to levy your assets.
- Rejected Offer in Compromise: If you submit an Offer in Compromise to settle your tax debt for less than what you owe and it gets rejected, the IRS may proceed with levying your assets if you don’t resolve the remaining debt.
- Business Tax Liabilities: Businesses can also receive notices of intent to levy for unpaid payroll taxes or other business-related tax obligations. Notices such as CP504B or CP297 are specific to business tax debts.
- Serious Delinquency Notice: If your tax debt exceeds $62,000, the IRS may also notify the State Department, which can affect your passport status, in addition to sending a notice of intent to levy.
Mr.Michael Sullivan and his expert team stop IRS levies in their tracks! Whether it’s IRS tax audit defense help or IRS tax debt settlement help, they protect your assets and handle the IRS, so you don’t have to!
Consequences of Ignoring an IRS Notice of Intent to Levy
Ignoring a Notice of Intent to Levy, whether it’s a CP501 or Letter 1058, can have severe consequences. Here’s what could happen if you do not respond:
- IRS Bank Levy: The IRS can freeze your bank accounts and withdraw the amount you owe. This can lead to bounced checks, overdraft fees, and a significant disruption to your financial stability.
- Wage Garnishment: If you don’t respond to the notice, the IRS can garnish your wages, meaning a portion of your paycheck will automatically be sent to the IRS until your tax debt is paid off.
- Seizure of Property: The IRS has the authority to seize and sell your physical property, including cars, real estate, and other valuable assets, to satisfy your tax debt.
- Negative Impact on Credit: The IRS may file a tax lien against you, which can seriously harm your credit score, making it difficult to secure loans, buy a home, or even get a credit card.
- Increased IRS Penalties and Interest: In addition to the original tax debt, you will incur penalties and interest for late payment. Over time, these amounts can grow significantly, making it even harder to pay off your debt.
- Legal Action: If the levy doesn’t cover the entire amount you owe, the IRS may take further legal action, such as suing you for the balance or placing a lien on other assets.
Also Read: Expert IRS Audit Reconsideration Services – Get Relief Now
How to Respond to IRS Notices 1058 and LT11?
Receiving an IRS Notice of Intent to Levy, such as Letters 1058 or LT11, can feel like a storm cloud hovering overhead. These letters are serious, but understanding how to respond can help you stay afloat. Here’s a guide to navigating these notices wisely and keeping your financial situation in check.
Immediate Steps to Take
When you get a letter from the IRS, the first step is to take a deep breath. Here are some immediate actions you should consider:
- Read the Notice Carefully: Understand what it says. This letter is telling you that the IRS plans to seize your property because of unpaid taxes. It will also inform you about your right to a hearing.
- Verify the Information: Double-check your tax records. Sometimes a simple mistake or oversight can lead to these letters.
- Act Quickly: You typically have only 30 days to respond before the IRS takes further action.
- Contact the IRS: Call the number provided in the notice to discuss your situation. This shows you’re proactive and trying to work things out.
Filing an Appeal
Nobody likes paperwork, but filing an appeal could help you present your case. Here’s how to get started:
- Request a Hearing: You can ask for a “Collection Due Process” hearing by submitting Form 12153. This form will let you explain why you disagree with the IRS action.
- Gather Documentation: Collect all necessary documents like tax returns, receipts, and any related evidence to support your case.
- Prepare Your Argument: Clearly outline your reasons for appealing. Whether it’s a mistake or inability to pay, make sure your point is clear and well-supported.
Getting Professional Help
Sometimes, dealing with the IRS feels like trying to solve a puzzle with missing pieces. That’s where having a professional like Mr. Michael Sullivan and his team can make all the difference. They ensure every step is handled with precision and efficiency, helping you avoid costly mistakes. With their expertise, all forms and documents are accurately completed and submitted on time, giving you peace of mind and a solid path to resolving your tax issues.
- Complex Situations: If your tax issues are complicated and you don’t know where to start, a tax professional or attorney can guide you through the process.
- Avoiding Costly Mistakes: Professionals like Mr. Michael Sullivan ensure all forms are filled correctly, reducing the risk of errors that could delay your case.
- Reducing Stress: They handle communications with the IRS, allowing you to focus on other responsibilities without the anxiety of ongoing tax troubles.
By taking over communications with the IRS, Mr. Michael Sullivan and his team relieve the anxiety of tax troubles, allowing you to focus on your daily life while they work to resolve your tax issues.
Closing Line!
Many taxpayers underestimate the seriousness of an IRS Notice of Intent to Levy—until it’s too late. It often comes as a shock because they didn’t expect the IRS to go through with seizing their assets. Most people assume that receiving a letter, like Letter 1058 or LT11, is just another warning in a pile of notices. They think they’ll have plenty of time to deal with it later, or that it might somehow resolve itself.
What they don’t anticipate is the severe consequences that follow if these notices are ignored. Most taxpayers expect they’ll have more time or that the IRS won’t go that far. What they don’t see coming is just how quickly the IRS can move once these notices are sent. It’s the need of the hour to act fast is key to protecting your assets and finding a resolution that works.
