The Letter 1058 is the IRS’ final attempt to reach you before they begin seizing your assets. After ignoring this letter, the IRS has full rights over your personal assets to settle your tax debt.
In order to prevent this action from happening, you must take action immediately. Paying off your unpaid balance is the quickest way to mitigate damages. Once all payments are made, the IRS will cease any further interest fees and penalties.
Even if you cannot pay your entire amount at the moment, paying off a lesser amount will reduce fees that will accrue over time. Owing less than $50,000 in tax debt qualifies you for an installment agreement, which allows you to make smaller monthly payments until your debt is paid in full.
Applying online is the fastest way to get approved, but you may mail in an installment agreement as well.
Again, if no action is taken after receiving this letter, the IRS will pursue with evasive actions like tax liens, tax levies, and wage garnishments. This means the IRS can take ownership of your home, car(s), investments, or even siphon money from your bank account(s), state tax refunds, and Social Security.
If you feel your letter was wrongfully addressed, do not delay; call the IRS immediately. Even if it is a mistake, the IRS will continue to take action if you do not intervene.
You can send in a request to appeal the potential levy by reading the Collection Due Process (CDP) FAQ on the IRS website. Pay close attention to the instructions on the letter as well, as it will direct you how to accomplish this.
If you or someone you know is facing a potential tax levy, it is recommended to speak with a tax professional immediately.