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Start Free Analysis →What Is Letter 1058?
IRS Letter 1058 is a formal notice issued by the Internal Revenue Service to taxpayers who have unpaid tax debts. This letter signifies that the IRS is preparing to take collection action against you, which may include a levy on your bank accounts or wages. Essentially, it serves as a final warning before the IRS escalates its efforts to collect what you owe.
Why You Received It
Taxpayers receive Letter 1058 when they have outstanding tax debts that have not been resolved despite prior notifications. This letter is typically sent after several attempts to communicate the debt, including previous notices and reminders. It’s essential to recognize that receiving this letter is a serious matter, as it indicates the IRS's intent to enforce collection measures if the debt remains unpaid.
Consequences of Ignoring It
Ignoring IRS Letter 1058 can lead to severe consequences. If you do not respond, the IRS may initiate collection actions, such as placing a lien on your property or executing a levy on your bank accounts or wages. A lien can affect your credit score and hinder your ability to secure loans, while a levy directly seizes your assets to satisfy the tax debt. It’s crucial to take this notice seriously to avoid these disruptive and potentially damaging actions.
General Response Options
Upon receiving Letter 1058, you have several options to consider for addressing your tax debt. You can negotiate a payment plan, known as an installment agreement, allowing you to pay off your debt over time. Alternatively, you may qualify for an offer in compromise, which could settle your tax debt for less than the total amount owed. Seeking tax relief can help you manage your situation effectively and avoid the harsh consequences of inaction.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. For specific guidance regarding your tax situation, consult a qualified tax professional.
Get Help with FreshRelief
If you are feeling overwhelmed by IRS Letter 1058 and the implications of your tax debt, FreshRelief is here to help. Our team of tax experts can guide you through the process of finding the right tax relief options for your situation. Don't let tax issues control your life—contact us today to take the first step toward financial peace of mind!