When taxpayers receive IRS Letter 1058, it’s often a moment of stress and urgency. This letter is not just another routine notice—it is the IRS’s final warning before initiating enforced collection actions such as wage garnishments, bank levies, or seizing property. At Juarez Hernández Tax Law, we are committed to helping taxpayers understand their rights, the implications of this letter, and the legal options available to respond effectively.
What is IRS Letter 1058?
IRS Letter 1058, also known as the “Final Notice of Intent to Levy and Notice of Your Right to a Hearing”, is issued when:
- You have an outstanding balance due to the IRS,
- You have received prior notices (e.g., CP14, CP501, CP503, CP504),
- Or you have not responded or made satisfactory payment arrangements.
This letter gives you 30 days to take action before the IRS moves forward with a levy on your assets, including wages or Social Security payments, bank accounts, and real or personal property.
Why is This Letter Important?
It is the last step in the IRS collection process before enforced action. It activates your legal right to request a Collection Due Process (CDP) hearing before the levy begins and can lead to significant financial disruption if ignored.
Your Legal Rights and Options
Upon receiving Letter 1058, there are important steps you need to take:
Request a Collection Due Process Hearing (CDP)
You must respond within 30 days of the letter date to preserve your right to a hearing. During the CDP hearing, you can:
- Propose a payment plan or Offer in Compromise
- Dispute the tax liability if you’ve never had a chance to do so
- Argue for “Currently Not Collectible” status due to financial hardship
Appeal IRS Actions
If the IRS rejects your CDP request or proceeds unfairly, you have the right to appeal through the U.S. Tax Court.
Settle or Resolve the Debt
Even if you don’t request a hearing, you may:
- Pay in full or enter into an Installment Agreement
- Qualify for an Offer in Compromise (settle the debt for less than owed)
- Apply for Hardship Relief (delay collection)
What Happens If You Ignore Letter 1058?
The IRS can and will begin enforced collection after the 30-day period. You may face wage garnishments, bank levies, and seizure of property or refunds. Additional interest and penalties will continue to accrue, increasing your total debt.
We Can Help!
At Juarez Hernández Tax Law, we specialize in navigating complex tax matters, including responding to IRS notices such as Letter 1058. If you have received this notice, we encourage you to contact our office for a consultation. Early intervention is critical to minimizing penalties, interest, and potential collection actions.
For more information, contact us to schedule an appointment. Our team is ready to assist you in protecting your rights and resolving your tax matters efficiently.