IRS Letter 1058 (LT11) in Washington DC

Sometimes people experiencing tax problems ignore communications from the Internal Revenue Service (IRS). If you receive IRS Letter 1058 or LT11 in Washington DC, it is time to pay attention.

This letter is your last opportunity to resolve the matter before the IRS begins enforced collection actions, including things like garnishing your wages and bank account, or seizing assets. If your tax debt exceeds $50,000, contact a tax levy attorney at Pontius Tax Law immediately. Our enrolled agents and former IRS Revenue Officers have the knowledge and skills to help resolve your tax debt with as little hardship and inconvenience as possible.

What Does “Intent to Levy” Mean?

When the IRS believes a taxpayer owes money, it will send a letter explaining the amount due, the interest rate, the applicable penalties, and provide a phone number to call to propose a resolution. If the taxpayer does not respond, the IRS could file a lien that gives it a legal interest in the taxpayer’s property.

IRS Letter 1058 is the IRS’ final notification that it intends to act on its lien and levy, garnish, or seize a taxpayer’s property to satisfy a tax debt. A person receives this letter only after the IRS has made several attempts at contact without a response.

If the IRS executes a levy, it can freeze bank accounts, garnish wages, or seize real estate or personal property. Our Washington DC attorney can work with the IRS and a taxpayer who has received IRS Letter 1058 to find an acceptable solution and avoid levy action.

IRS Letter 1058: Resolving the Tax Debt

You have 30 days from the date on the letter to resolve the debt or request a Collection Due Process hearing. A taxpayer who can pay their debt in full could call the phone number on the letter or access their online account to make the payment. When you cannot pay the debt immediately or dispute the amount owing, our team is available to assist.

We could request a compliance check to verify the amount owing and help you complete the appropriate Form 433, Collection Information Statement, which provides information about your income, assets, and liabilities. Using this information, we recommend a resolution plan to take care of the tax debt.

Alternatively, you have the right to request a hearing. Doing so takes the matter out of the automated collection system or Revenue Officer and puts decision-making in the hands of an IRS Appeals Officer These hearings do not require in-person attendance; they are generally conducted by telephone with your representative.

Responses to a Levy

When the IRS executes a levy as laid out in Letter 1058, it may freeze all of the funds in all of your bank accounts, up to the amount owed, for 21 days. At the end of that period, the bank sends the money that was in the account on the date of levy execution to the IRS.

You can use the 21-day window to resolve the debt. An attorney or enrolled agent could help you demonstrate to the IRS that the freeze prevents you from meeting your needs and propose alternatives. If the taxpayer proves the freeze is causing financial hardship and makes acceptable payment arrangements, the IRS may agree to release the levy in full or in part and allow the taxpayer access to their funds.

Contact a Washington DC Attorney Immediately If You Receive IRS Letter 1058

It is easy to ignore tax problems for a while, but if you receive IRS Letter 1058 or LT11 in Washington DC, you must act now. The team at Pontius Tax Law work with people and businesses with at least $50,000 in tax debt who are facing the possibility of a levy. Contact us today to help you avoid or resolve an issue with the IRS.