IRS Letter 1058, also known as LT11, is a critical enforcement notice from the Internal Revenue Service (IRS) indicating that you have an unpaid federal tax balance, and the IRS intends to levy (seize) your assets or wages if the issue isn’t resolved. This is the final warning in the IRS’s collection notice sequence before they proceed with enforced collection actions. It’s not related to audits or filing reminders—it’s specifically for taxpayers who owe money and haven’t responded to prior notices. Receiving this letter means your account has been certified as delinquent, and the IRS has the legal authority under Internal Revenue Code Section 6331 to begin levies without further notice.
Key Details About Letter 1058/LT11
- Purpose: To notify you of the outstanding tax debt (including penalties and interest), demand full payment, and warn of impending levy actions. It gives you one last chance to pay, set up a payment plan, or appeal before seizures occur.
- What It Typically Includes:
- Breakdown of the owed amount, including principal tax, penalties, and accrued interest (updated as of the letter date).
- A 30-day deadline to respond or pay in full.
- Description of potential levy targets (e.g., bank accounts, wages, Social Security benefits, or state refunds).
- Your rights, including the right to a Collection Due Process (CDP) hearing via Form 12153.
- Contact info for the IRS Centralized Lien and Levy Operations (CLLO) or Automated Collection Branch.
- Instructions for payment (e.g., IRS Direct Pay, check, or credit card) and alternatives like installment agreements.
- Who Receives It?: Taxpayers with unpaid balances from assessed taxes (e.g., after filing a return with owed amount or post-audit adjustments). It’s sent after ignoring three prior notices (typically CP501, CP503, CP504). Common for individuals, businesses, or self-employed with back taxes from recent years.
- Tone and Implications: Urgent and authoritative—levies can start after 30 days if unresolved. This notice “certifies” your account for levy, potentially affecting credit and financial stability, but it’s resolvable with prompt action.
Why Does the IRS Send Letter 1058/LT11?
The IRS follows a structured collection process (outlined in Internal Revenue Manual IRM 5.11 for notices and 5.16 for levies) to encourage voluntary payment:
- Prior notices build up if no response.
- This is the fourth and final soft notice; post-LT11, levies become imminent unless you act.
- Triggers include unpaid taxes over $10,000 (thresholds vary), ignored installment requests, or bounced payments.
As of November 2025, the IRS has ramped up enforcement with Inflation Reduction Act funding, prioritizing high-dollar debts while offering relief for low-income taxpayers.
How to Respond to Letter 1058/LT11
- Assess Urgency: Calculate your total debt using the IRS account transcript (request via irs.gov/account). Prioritize if levy could hit essentials like rent or food.
- Pay in Full: Use IRS.gov/payments for immediate electronic options—no fees for many methods.
- Request Alternatives:
- Installment Agreement: Apply online if under $50,000 owed (Form 9465 or short form).
- Offer in Compromise (OIC): Settle for less if you qualify (use OIC Pre-Qualifier tool).
- Currently Not Collectible (CNC): If hardship proven, collections pause.
- Appeal the Levy: File Form 12153 within 30 days for a CDP hearing—independent review of the debt and collection method.
- Contact IRS: Call the number on the letter (e.g., 800-829-0922) ASAP. Document all calls.
Responding within 30 days halts levies; extensions aren’t automatic but can be requested.
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