Letter 1058 LT 11

The IRS May Be Preparing to Seize Your Property

Receiving a Letter 1058 LT 11 from the IRS is a serious matter. This is not a routine reminder or an early warning about unpaid taxes. It is a final notice stating that the IRS intends to levy your property or rights to property because it has not received payment for an outstanding tax debt.

A levy allows the IRS to take property or money to satisfy a tax balance. Depending on your circumstances, this could affect your bank accounts, wages, business assets, vehicles, real estate, Social Security benefits, state tax refunds, and other sources of income or property.

Most importantly, Letter 1058 LT 11 gives you a limited period in which to request a Collection Due Process hearing. In most cases, that request must be filed within 30 days. Missing the deadline can take away important appeal and court rights, so this notice should never be placed aside or ignored.

What Is Letter 1058 LT 11?

The IRS uses Letter 1058 and Notice LT11 to notify taxpayers that it intends to take enforced collection action. Although the formatting and title may vary, these notices generally communicate the same urgent message:

• The IRS claims that you owe an unpaid federal tax debt.
• Earlier attempts to collect the balance have not resolved the account.
• The IRS intends to levy your property or rights to property.
• You have the right to request a Collection Due Process hearing.
• Your hearing request must be submitted by the deadline stated in the notice.

The IRS describes an LT11 or Letter 1058 as a final notice of intent to levy and notice of the taxpayer’s right to a hearing. According to the IRS, taxpayers generally have 30 days to request that hearing.

The exact deadline printed on your Letter 1058 LT 11 is critical. Do not assume that you have 30 days from the day you opened the envelope. Review the notice immediately and determine the date by which the IRS must receive or recognize a timely appeal request.

What Does an IRS Levy Mean?

An IRS levy is a legal seizure of property to collect a tax debt. It is different from a federal tax lien.

A lien is the government’s legal claim against your property. A levy is the action the IRS uses to take money or property. Once the IRS reaches the Letter 1058 LT 11 stage, the possibility of an actual seizure is much closer.

The IRS may attempt to levy:

• Checking and savings accounts
• Wages and other employment income
• Accounts receivable
• Business equipment and assets
• Vehicles
• Real estate, including a home in some circumstances
• Retirement income
• Social Security benefits
• State tax refunds
• Other property or income belonging to the taxpayer

The exact collection action will depend on the type of tax debt, the taxpayer’s assets, prior communications with the IRS, and other facts surrounding the account.

You Generally Have 30 Days to Request a Hearing

A taxpayer who receives Letter 1058 LT 11 generally has 30 days to request a Collection Due Process hearing with the IRS Independent Office of Appeals. The request is commonly made by submitting Form 12153, Request for a Collection Due Process or Equivalent Hearing.

The form must be sent to the address designated for hearing requests on the notice. That address may be different from the payment address. Including a copy of the notice can help the IRS properly identify the tax periods and collection action being challenged.

The hearing request should identify why the taxpayer disagrees with the proposed levy or what collection alternative the taxpayer wants the IRS to consider. Simply sending an incomplete form without stating a reason for the dispute may not protect the taxpayer’s position.

Because the deadline is so important, taxpayers should keep records showing when and how the request was submitted. Waiting until the final day creates unnecessary risk.

What Happens After a Timely Appeal Is Filed?

When a timely Collection Due Process hearing request is properly submitted, levy action is generally suspended for the tax periods included in the hearing while the appeal is pending. There are exceptions, so the facts of each case must be reviewed carefully.

The case is generally assigned to the IRS Independent Office of Appeals. During the hearing, the taxpayer may be able to raise issues involving the proposed collection action and possible ways to resolve the debt.

Depending on the circumstances, the hearing may address:

• Whether the IRS followed the required collection procedures
• Whether the proposed levy is appropriate
• An installment agreement
• An offer in compromise
• Currently not collectible status
• Innocent spouse relief
• A request to use a different collection method
• Whether the taxpayer already paid the balance
• Whether payments were applied incorrectly
• Whether the IRS is attempting to collect after the applicable collection period
• Whether the taxpayer actually owes the assessed tax, when the rules permit that issue to be raised

The right to dispute the underlying tax liability during a hearing is limited. It may depend on whether the taxpayer received an earlier notice of deficiency or previously had a meaningful opportunity to dispute the amount.

A Collection Due Process Hearing May Preserve Tax Court Rights

One of the most important reasons to respond to Letter 1058 LT 11 within the required period is the right to seek judicial review.

After the Collection Due Process hearing, the IRS Independent Office of Appeals issues a determination. If the taxpayer disagrees with that determination, a timely request may preserve the right to petition the United States Tax Court.

That opportunity may not be available when a taxpayer misses the original 30-day deadline. This is why filing the correct request on time can be just as important as the arguments presented during the hearing.

What If the 30-Day Deadline Has Already Passed?

A missed deadline does not necessarily mean that nothing can be done. A taxpayer may be able to request an Equivalent Hearing, generally within one year following the applicable period.

However, an Equivalent Hearing does not provide all the protections of a timely Collection Due Process hearing. The IRS is generally not required to suspend collection activity while an Equivalent Hearing is pending, and the taxpayer usually will not have the same right to ask the Tax Court to review the result.

Other collection or appeal procedures may also be available depending on what the IRS has done and the current status of the account. Anyone who has missed the deadline should still seek assistance promptly rather than assuming that the situation cannot be addressed.

Do Not Automatically Agree to a Payment Plan

Some taxpayers respond to Letter 1058 LT 11 by calling the IRS and accepting the first payment arrangement offered. A payment plan may be appropriate, but it is not the only possible resolution.

Before agreeing to terms, it is important to review:

• Whether the IRS calculated the balance correctly
• Whether all required tax returns have been filed
• Whether any payments are missing or misapplied
• Whether penalties may qualify for removal
• Whether the proposed monthly payment is affordable
• Whether financial hardship prevents payment
• Whether an offer in compromise may be available
• How much time remains for the IRS to legally collect the debt
• Whether the taxpayer has grounds to challenge the proposed levy

An agreement made without reviewing the full account could create a payment obligation that is too high or cause the taxpayer to give up a better course of action.

What Should You Do After Receiving Letter 1058 LT 11?

If you have received this notice, take the following steps immediately:

1. Locate the response deadline.
   Find the deadline printed on the notice and do not wait until the final day.
2. Keep the complete notice and envelope.
   Every page may contain important account, tax-period, address, and appeal information.
3. Review the tax periods and amounts.
   Determine which returns, assessments, penalties, and years are included.
4. Gather previous IRS correspondence.
   Earlier notices may affect which issues can be raised during an appeal.
5. Do not move or conceal assets.
   Attempts to hide property can make the situation substantially worse.
6. Determine the proper response.
   Filing Form 12153 may be necessary, but the reasons stated on the form should reflect the facts and the desired resolution.
7. Seek legal guidance promptly.
   A tax attorney can examine the notice, account history, collection deadlines, financial information, and available appeal options.

Help Responding to Letter 1058 LT 11

A Letter 1058 LT 11 means the IRS has moved beyond ordinary collection reminders and is warning that it intends to seize property or income. You may still have valuable rights, but those rights are tied to a short response period.

Witherspoon Law assists individuals and businesses dealing with IRS collection notices, proposed levies, tax appeals, and unresolved federal tax debts. The firm can review the notice, identify the applicable deadline, evaluate the IRS account, prepare a hearing request when appropriate, and present possible collection alternatives.

If you have received Letter 1058 LT 11, contact Witherspoon Law as soon as possible. Acting before the deadline may help protect your property, preserve your appeal rights, and create an opportunity to resolve the tax matter before the IRS proceeds with enforced collection.

This article provides general information and is not legal advice. The correct response depends on the facts of the taxpayer’s case and the dates stated in the IRS notice.