When you owe a delinquent tax to the IRS, you’ll receive a notice or letter about seizing your property or property rights.
If they’re LT11 notice or Letter 1058, it’s a serious matter.
That’s indicating that previous attempts to resolve the debt have been ignored or unresolved. At this point, you need to contact the IRS almost immediately.
However, how can you manage these results in the most financially and psychologically appropriate way? By understanding the language of these notices.
Keep reading.
What are LT11 notice and Letter 1058?
The IRS sends LT11 Notice or Letter 1058 as a final notice after sending a series of notices to a taxpayer. These written notifications inform you that the IRS plans to seize your property or property rights if no action is taken, the IRS will take action.
What is the difference between LT11 and LT1058?
The LT1058 is usually sent by Revenue Officers, while the LT11 comes from the IRS’s Automated Collection Systems. Simply put, if a Revenue Officer is handling your case, you’ll likely get the LT1058 for asset levies. If not, the LT11 is more probable. When your case is assigned to a Revenue Officer, you’ll typically receive IRS form 9297 to inform you of this assignment.
Why does the IRS send notices and letters?
With LT11 Notice or Letter 1058, the IRS notifies you of your right to request a court hearing and that is a final warning before levying your property. Besides, these legal documents explain what will happen if the taxpayer doesn’t respond and what types of property can be taken. They can attach a levy to your wages or bank accounts up to the amount owed.
Who is the recipient of IRS Letter LT1058 or LT11?
- Those who have unpaid tax debts on the due date.
- Those who get multiple notices from the IRS requesting payment but never paid.
What happens if you don’t pay or miss the deadline of LT11 or LT1058?
You have 30 days to take action from the date of the letter. If you don’t respond within this time, the IRS subject to levies or seizures of your wages, other income, bank accounts, personal assets, state and federal tax refunds, social security benefits.
Moreover, you won’t be able to get a new passport and your current passport will be revoked, if the IRS notifies the State Department about your situation.
Feeling Overwhelmed?
Allowable living expenses:
- National standards (food, clothing)
- National standards (out of pocket health care)
- Local standards (transportation)
- Local standards (housing)
However, if you’re willing to pay but can’t pay your tax liability, what can you do? You should contact the IRS to discuss your financial situation and find a suitable arrangement. Besides, here are your options on how to stop a tax levy:
- Installment Agreement
- Partial payment installment agreement
- Offer in Compromise
- Currently Non-Collectable
How to prevent LT11 Notice or Letter 1058
Ignoring these legal notices can lead to wage garnishment, bank account levies, or seizure of other assets. If possible, it’s best to avoid getting an LT11 Notice or Letter 1058.
- First of all, ensure timely tax payments and responding to initial IRS correspondence.
- If you receive one, it’s highly suggested to contact a tax professional immediately. Need one urgently? Contact us for a free initial consultation.
When you receive one, what should you do?
- Pay your unpaid balance to stop more interest and penalties. If you can’t pay the full amount, pay what you can. At least, it’ll reduce the amount of interest and penalties.
- If you’re unable to pay, contact the IRS. You’ll find all phone number listed on the notice or letter. Then, work out an arrangement with them to avoid liens, levies, or seizures.
- If you think something is incorrect about the amount or else, you can file an appeal by requesting a Collection Due Process Hearing. However, you should respond within 30 days from the date of the notice. To make this process the easiest, it may be wise to collaborate with a tax attorney.
I.R.C. § 6331
I.R.C. § 6331 is a section in the U.S. federal tax laws that outlines the IRS’s (Internal Revenue Service) authority in the tax collection process. This section grants the IRS the power to levy the property or property rights of taxpayers who neglect or refuse to pay their taxes.
Need a professional help for LT11 or LT1058 ?
If the whole tax law things seem complicated to you, just calm down. Our tax professionals can deal with the IRS. We can help you navigate the situation, possibly setting up a payment plan or exploring other regulations.
Sooner rather than later, contact us.
