IRS Letter 1058: Final Notice of Intent to Levy

Q: How do I respond to an IRS notice of levy?

Act within 30 days: pay in full, set up an installment agreement, submit an Offer in Compromise, or request a Collection Due Process (CDP) hearing using Form 12153 to pause levies while reviewed.

Q: How do I appeal a notice of intent to levy?

File Form 12153 for a CDP hearing within 30 days to pause levy actions. You can appeal the determination to the U.S. Tax Court if needed.

Q: How to negotiate a levy?

Propose alternatives: installment agreement, Offer in Compromise, or Currently Not Collectible status. Provide full financials to support your request.

Q: How many notices does the IRS send before a levy?

Typically CP14, CP501, CP502, CP503, and CP504 precede Letter 1058 (or LT11), which serves as the final warning before levy.

Q: Will an offer in compromise stop a levy?

An OIC can prevent levy actions if accepted or while under active review, but it does not automatically stop levies. Timing and communication matter.

Q: Does the IRS have to notify you of a levy?

Yes. The IRS must issue a final notice such as Letter 1058 or LT11 and provide at least 30 days to respond or request a CDP hearing.

Q: Can a bank levy take all your money?

A bank levy can seize funds up to the amount owed, including penalties and interest. Certain benefits may be protected depending on laws and exemptions.

Key Takeaways

Letter 1058 is the final warning before levy; you have 30 days to act.
It follows prior notices (CP14, CP501–CP504) and triggers serious consequences if ignored.
You have rights: request a CDP hearing, appeal, or seek relief options.
Response options include paying in full, installment agreement, OIC, or CNC status.
Prevent future actions with better withholding, estimated taxes, and faster responses.

What Is IRS Letter 1058?

Letter 1058 is issued to taxpayers with unpaid balances after prior notices are ignored. It announces the IRS’s intent to levy assets if no action is taken within 30 days. Understanding the urgency helps you preserve options and prevent forced collection.

Typical Contents

• Total balance owed (tax, penalties, interest)
• A 30-day response window before levy authority begins
• Instructions to request a CDP hearing
• IRS contact information to discuss payment or disputes

Letter 1058 vs. LT11

Both serve as the final notice before levy. The difference is largely administrative: Letter 1058 often stems from automated collections; LT11 may come from a revenue officer or centralized collections. Your obligations and timelines are the same.

Why Did You Receive Letter 1058?

Common drivers include unpaid income tax, accrued penalties/interest, ignored prior notices, or defaulted installment plans. The letter typically follows CP14, then CP501–CP504, culminating in Letter 1058 as the final warning.

What Happens After You Receive It

The 30-Day Response Window

• Pay the balance in full
• Request an installment agreement
• Submit an Offer in Compromise
• Request Currently Not Collectible status
• File for a CDP hearing (Form 12153)

IRS Actions After 30 Days

• Wages and income, bank accounts, personal/business assets, state refunds
• Social Security benefits may be impacted

For larger debts, passport restrictions are possible. Extensions are rare and reserved for extraordinary cases. Always send hearing requests via certified mail for proof.

Your Rights Under Letter 1058

CDP Hearing

Filing Form 12153 pauses levies during review. You can dispute amounts, show hardship, or propose alternatives such as installment plans, OIC, or CNC.

Appeal Rights

You can challenge calculations, seek alternate collection methods, and ensure due process. If you disagree with the determination, appeal to the U.S. Tax Court.

Innocent Spouse Relief

If a spouse’s actions created the liability, you may be protected by Innocent Spouse Relief (Form 8857) when you lacked knowledge and didn’t benefit from the unreported income.

How to Respond

Pay in Full

Fastest way to stop collection actions. Use IRS Direct Pay/EFTPS, check/money order, or card (fees apply).

Installment Agreement

Short-term (≤120 days) or long-term plans can prevent levy while you remain compliant.

Offer in Compromise

Settle for less when income, expenses, assets, and ability to pay support an offer.

Currently Not Collectible

If you can’t pay anything now, CNC pauses levy actions though interest/penalties accrue.

Common Mistakes

Ignoring the letter (forfeits key rights; accelerates levy)
Missing the 30-day deadline (limits CDP protections)
Submitting incomplete/incorrect forms
Assuming no action will be taken quickly
Relying on verbal agreements without written confirmation

Preventing Future Collection Actions

• W‑2: Review withholding and update your W‑4
• Self‑employed: Set up quarterly estimated tax payments
• Business owners: Separate finances and use payroll services for deposits

Respond to IRS notices promptly to stop small problems from becoming levies.

Frequently Asked Questions

How do I respond to an IRS notice of levy?

Respond within 30 days: pay, request a plan, submit an OIC, or request a CDP hearing (Form 12153) to pause levy actions.

How do I appeal a notice of intent to levy?

File Form 12153 for a CDP hearing within 30 days. If you disagree with the outcome, appeal to the U.S. Tax Court.

How to negotiate a levy?

Propose alternatives with documentation: installment agreement, Offer in Compromise, or CNC status.

How many notices does the IRS send before a levy?

Typically CP14, CP501, CP502, CP503, and CP504—then Letter 1058 (or LT11) as the final warning.

Will an offer in compromise stop a levy?

An OIC may prevent levies if accepted or under active review, but it’s not automatic—timely filing and communication matter.

Does the IRS have to notify you of a levy?

Yes—law requires a final notice (Letter 1058 or LT11) with at least 30 days to respond or request a CDP hearing.

Can a bank levy take all your money?

It can seize funds up to the amount owed (tax, penalties, interest). Some benefits may be protected depending on exemptions.

Need help responding to Letter 1058?

Our team can evaluate your options, pause levies, and negotiate the right resolution.

Get a Free Consultation

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Valor Tax Relief Team