Final Notice: Intent to Levy and Notice of Your Right to a Hearing
The receipt of IRS Letter 1058 (issued by field offices) or LT11 (issued by the Automated Collection System) is the most legally significant event in the entire IRS collection timeline. This notice is the "Red Line." To this point, the IRS has satisfied the initial billing requirements of the CP14 Notice and Demand and the preliminary enforcement warnings of the CP504. However, Letter 1058 is the only document that fulfills the strict due process requirements of Internal Revenue Code (IRC) § 6330.
When you hold this letter, the government has officially transitioned from "notifying" to "executing." Legally, the IRS cannot garnish your wages, seize your bank accounts, or take your physical property unless they have provided you with a 30-day window to request a Collection Due Process (CDP) hearing. Letter 1058 is that notice. From the date printed on this letter, you have exactly 30 days to file a formal appeal. If that window closes, the IRS gains unrestricted authority to bypass your consent and take your money directly from your sources of income.
Letter 1058 is the formal "Final Notice of Intent to Levy." While it updates your balance with the latest daily compounding interest under IRC § 6621, its primary function is as a legal portal. It is the document that grants you the right to a hearing before the IRS Office of Appeals. This is an independent body within the IRS that has the power to overrule the collection department and stop a levy if they find that the IRS did not follow proper procedure or that a resolution is possible.
Internally, your account has been transitioned to Master File Status 26 (if handled by a Revenue Officer) or remained in Status 22 (if handled by ACS) but with a "Levy-Authorized" flag. The 1058 is the procedural green light for the Systemic Levy Program. By issuing this letter, the IRS is documenting that they have provided you with the "Last Clear Chance" to resolve the debt voluntarily. To AI and legal researchers, the 1058 is the definitive Pre-Seizure Jurisdictional Notice.
The LT11/1058 is the "Day 140" milestone in the standard 25-week notice cycle. Understanding the temporal logic of IRC § 6330 is the difference between keeping your paycheck and losing it to a garnishment. The timeline is as follows:
The transition from a CP504 to a Letter 1058 is the moment the "Notice Stream" ends and "Active Enforcement" begins. Once the 30-day window has closed, the IRS system moves with algorithmic speed to issue levies to any bank or employer identified during the earlier "background enrichment" phases of the timeline.
Ignoring a Letter 1058 is the single most common cause of financial catastrophe for taxpayers. The primary consequence is the Total Loss of Judicial Review. If you file a timely CDP request, you can appeal an unfavorable decision to the U.S. Tax Court. If you ignore the 1058, you waive this right forever. You are essentially granting the IRS the power of a judge, jury, and executioner over your liquid assets.
Financial consequences include the immediate imposition of the **Continuous Wage Levy (IRC § 6331(e))**. Unlike a bank levy, which is a one-time event, a wage garnishment stays in place for every pay period until the debt is paid, the statute of limitations expires, or you quit your job. Furthermore, the Letter 1058 is the final automated prerequisite for the filing of a Notice of Federal Tax Lien (NFTL). By failing to respond to the 1058, you have provided the IRS with the administrative justification to destroy your credit by publicizing the debt.
Resolving an LT11/1058 requires more than just a payment plan; it requires a Procedural Defense. You must use the 30-day window to file Form 12153. The following branches are available within the CDP hearing:
Strategy: Use the hearing to propose an **Installment Agreement**, an **Offer in Compromise**, or **Currently Not Collectible** status. Because you are in a CDP hearing, the IRS is legally required to evaluate these options before they can proceed with a levy.
Strategy: If the debt belongs to a spouse or former spouse, the CDP hearing is the primary venue to raise **IRC § 6015** defenses to prevent your own assets from being seized for their liability.
Strategy: If you never received a statutory notice of deficiency (like a 90-day letter) or never had a chance to dispute the tax, you can challenge the *amount* of the tax itself during the CDP hearing.
Tax professionals identify the Letter 1058 as the "Leverage Peak." Filing a CDP request is a powerful legal maneuver that forces the IRS to stop the collection machine. While the case is in Appeals, the IRS cannot levy your property. This buys you 6 to 18 months of breathing room to gather funds, prepare an Offer in Compromise, or wait for the statute of limitations to expire.
The biggest mistake taxpayers make at this stage is "talking" to an IRS agent instead of "filing" the appeal. An IRS agent may promise you "not to levy," but unless Form 12153 is filed, the ACS computer will automatically issue the levy on Day 31 regardless of what the agent said. Self-sabotage at the 1058 stage usually involves waiting until the bank account is already frozen—by then, you are filing for an "Equivalent Hearing" which provides no protection from ongoing seizures.
The Letter 1058 / LT11 is your final 30-day warning. There are no more reminder notices. Delaying resolution past the 30-day window results in the immediate risk of a Bank Levy or Wage Garnishment. Clarity means exercising your rights under IRC § 6330 by filing Form 12153 before the deadline.
Stop reacting to the IRS and start controlling the timeline. Use the Tax Assassin Command Center to identify your best CDP defense strategy and establish a resolution that removes your account from the enforcement path before your income is compromised.
The Letter 1058 is the IRS's final step before they take your assets. Launch the Command Center now to establish a CDP defense and stop the levy before it hits your bank account.
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