Receiving an unexpected letter from the IRS can be stressful, especially when it involves serious action. The CP1058 is one such notice that requires your immediate attention. If you’ve received this letter, it’s crucial to understand its purpose, the potential implications, and how to address it effectively.
What Is a CP1058 Letter?
The CP1058, also known as the Final Notice of Intent to Levy and Your Right to a Hearing, is issued by the IRS when they plan to levy your property to collect unpaid taxes. This letter indicates that previous attempts to resolve the debt have not been successful, and the IRS is now taking steps to secure payment through more aggressive means, such as:
- Garnishing wages
- Seizing bank accounts
- Placing liens on property
The notice also informs you of your right to request a Collection Due Process (CDP) hearing within 30 days of the date on the letter.
Why Did You Receive a CP1058 Letter?
The IRS issues a CP1058 when you owe back taxes and have not taken action to resolve the debt despite prior notices. Common reasons include:
- Unpaid Tax Balances: Taxes from previous years remain unpaid.
- Ignored IRS Notices: Previous communications about the balance were not addressed.
- Missed Payment Plans: Defaulting on an agreed-upon installment plan.
This letter signals that the IRS is prepared to use all available means to collect the owed amount unless action is taken promptly.
Steps to Take If You Receive a CP1058
- Do Not Ignore the Letter: This is a final warning from the IRS. Ignoring it could lead to serious financial consequences.
- Review the Notice Carefully: Understand the details, including the amount owed, the deadline to respond, and your right to a hearing.
- Request a Collection Due Process Hearing: If you disagree with the IRS’s actions or need time to resolve the debt, filing for a CDP hearing within 30 days is essential. This can temporarily halt the levy process.
- Evaluate Your Options: Depending on your situation, you may:
- Pay the amount in full, if possible.
- Negotiate an Installment Agreement to pay in smaller amounts over time.
- Explore an Offer in Compromise to settle the debt for less than what you owe.
- Request a Currently Not Collectible status if you cannot pay at all.
- Seek Professional Help: The IRS collection process is complex, and responding incorrectly can worsen your situation.
Why Professional Assistance Matters
A CP1058 letter represents one of the IRS’s most serious collection actions. Navigating the response process requires a solid understanding of tax law and IRS procedures. A tax resolution expert can:
- Evaluate your financial situation and recommend the best course of action.
- Represent you in communications with the IRS, including during a CDP hearing.
- Help negotiate terms to reduce or eliminate the stress of the debt.
At Accelerated Tax Relief, we specialize in helping taxpayers resolve issues like the CP1058 notice. Our team understands the urgency and complexity of these situations and is here to guide you through every step.
Don’t wait until it’s too late. If you’ve received a CP1058 letter, call us today at (630) 428-3015. Let us help you take control of your tax situation and work toward a resolution that protects your financial future.
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