Tax problems / LT11 & Letter 1058
LT11 and Letter 1058: the final notice before levy.
This is the letter that matters most. LT11 and Letter 1058 are the IRS’s final notice of intent to levy, and they come with notice of your right to a hearing. That right lasts 30 days from the date on the notice. Exercised in time, it stops collection and puts an independent office between you and the levy. Missed, it does not come back.
What it means
The right it carries
After this notice, the IRS can levy
Once the 30 days pass without action, wages, bank accounts, accounts receivable, commissions, and certain federal payments become available to levy. A wage levy is continuous, meaning it attaches to each paycheck until released. A bank levy freezes funds for 21 days before the bank remits them, which is a short but real window to act.
The 30 days is a Collection Due Process right
A timely request for a Collection Due Process hearing, made on Form 12153, generally suspends levy action while it is pending, moves the matter to the Independent Office of Appeals, and preserves the right to petition the Tax Court if the outcome is unfavorable. It also suspends the collection statute for the duration.
The hearing is where alternatives get decided
A collection hearing is not a rerun of whether the tax is right, except in limited circumstances where you never had a chance to dispute it. It is where collection alternatives are heard: an installment agreement, an offer in compromise, hardship status, lien withdrawal or subordination, or innocent spouse relief.
Late requests get less
Miss the 30 days and an equivalent hearing can still be requested within a year. It gets you an Appeals conference, but not the levy suspension, not the statute suspension, and not Tax Court review. The difference between day 30 and day 31 is substantial.
Not every levy source is available
Certain property is exempt, and a portion of wages is protected based on filing status and dependents, though the protected amount is far smaller than most people expect. Levies on principal residences require court approval. None of this makes a levy tolerable; it just means the exposure is definable.
The next 30 days
What to do, in order.
- Date the noticeCalendar the 30 days from the notice date, not the delivery date.
- File Form 12153Request the Collection Due Process hearing in writing, on time.
- Get compliantFile missing returns and current estimated payments; nothing is approved without it.
- Build the alternativePrepare the financial package supporting the resolution you want.
Working the hearing
What actually happens next
Appeals is a different office
The Independent Office of Appeals is separate from the collection function that issued the notice, and its role is to weigh whether the proposed collection action balances the government’s need with the intrusiveness to you. Presenting a workable alternative is the point of the exercise.
Financial disclosure is usually required
Any alternative other than paying in full generally requires a collection information statement, Form 433-A or 433-B, with supporting documentation of income, expenses, and assets. The quality of that package largely determines the outcome, because the IRS applies standardized allowable expense figures and the argument is about where your facts fall against them.
Liability can sometimes be raised
If you never received a notice of deficiency and never otherwise had an opportunity to dispute the underlying tax, the amount itself can be challenged in the hearing. That is common where the balance came from a substitute return the IRS prepared. See unfiled tax returns.
A levy already in place can be released
If a levy has issued, release is possible where it creates economic hardship, where the balance is resolved or an agreement is entered, or where the levy was premature or improper. The bank’s 21-day holding period before remitting funds is a genuine opportunity, and it is short.
This page is general information about how the rules work, not tax or legal advice for a specific situation. Facts change outcomes. Talk with the firm before acting on anything here.
Questions
Common questions
What is the single most important thing to do?
File the Collection Due Process hearing request within 30 days of the notice date. It generally stops levy action while it is pending and preserves rights that cannot be recovered afterward, and it costs nothing to file.
Does requesting a hearing make the IRS more aggressive?
No. It is a statutory right, used routinely, and exercising it is expected rather than provocative. It moves the file to an office whose function is to consider alternatives.
My wages are already being levied. Is it too late?
No. Levies are released regularly, most often by entering an installment agreement, establishing hardship, or resolving the balance. A wage levy continues until released, so the priority is getting something on record quickly rather than waiting for the next pay period.
Can I request a hearing if I agree I owe the money?
Yes, and most requests are exactly that. The hearing is primarily about how the balance gets resolved, not whether it exists. Agreeing with the amount does not weaken the request.
What if I never received the earlier notices?
Raise it. Notices are sent to the last known address, and a move or a change of representative frequently means they were never seen. Where you had no earlier opportunity to dispute the liability, the hearing may be the place to do it.
The clock is thirty days.
If you have this letter, send it to us today with the date visible. The hearing request is time-sensitive and it is the single most useful thing that can be filed at this stage.