Notice of Intent to Levy
If you have received Letter 1058: Final Notice of Intent to Levy from the IRS, you know you are facing a serious predicament. But before you panic, let’s exam what it means to receive this notice and what your options are for dealing with this situation.
WHAT IS LETTER 1058?
While the IRS may issue numerous collection notices referencing its intent to levy or intent to seize assets, particular attention should be given to Letter 1058: Final Notice of Intent to Levy. As its name suggests, Letter 1058 acts as the final notice that the IRS will issue prior to taking enforced collection action. Such action could include levies on bank accounts and accounts receivable, as well as wage garnishments and seizure. The IRS Manual highlights that the purpose of the Final Notice of Intent to Levy is to warn taxpayers that their failure to respond could result in imminent enforcement. Furthermore, the Final Notice of Intent to Levy is considered a legally sufficient notification to support collection action by levy.
THE NOTIFICATION PROCESS
The notice will list tax type (i.e 1040), tax period, unpaid amount from prior notices, additional penalty, additional interest, and the amount owed. Along with the notice, the IRS will also include Publication 594: The IRS Collection Process and Publication 1660: Collection Appeal Rights. Taxpayers have the option to submit an appeal in response to the Final Notice of Intent to Levy through a Request for Collection Due Process or Equivalent Hearing. The tax modules included on the Final Notice of Intent to Levy can be included on the appeal request. Under certain conditions, prior tax modules that are not included on the notice may also be included within the appeal request. Such tax modules would fall under the Equivalent Hearing provisions.
WHAT CAN YOU DO?
Despite the issuance of a Final Notice of Intent to Levy, a taxpayer can work directly with a Revenue Officer or the Collections Division in an effort to reach a formal resolution on the existing liability. Should a taxpayer reach a formal agreement to resolve the Federal tax liability, the IRS will refrain from taking enforced collection action. The Final Notice of Intent to Levy should not, however, be taken lightly. If a formal agreement has not been reached with the IRS within 45 days of the date of the notice, the IRS will levy. You can learn more about stopping a tax levy by downloading our free guide.
If you would prefer to learn more about your options, you can speak directly to one of our tax experts, today. We understand that the threat or notification of a levy can be overwhelming, but there is time to do something about your tax debt issues. In order to get the best possible outcome, a solid plan and strategy need to be put in place right away. Now it more important to have an expert on your side, let 20/20 be your guide in reaching your resolution.