IRS Letter 1058: Final Notice of Intent to Levy & Right to a Hearing

This is general education, not individualized tax or legal advice. Collection procedures, deadlines, and rights are time-sensitive. Always review your specific Letter 1058 with a qualified professional before you respond.

What IRS Letter 1058 actually is

IRS Letter 1058 is a formal, legal notice that the IRS intends to levy your property and is informing you of:

• Its intent to levy (take property to satisfy a tax debt), and
• Your right to a Collection Due Process (CDP) hearing before most levy actions move forward.

In plain English, the IRS is saying:

• You have a seriously delinquent balance.
• They are prepared to move into active enforcement (levies and sometimes liens).
• You have a limited window to request an independent review of your case.

How Letter 1058 is different from CP504

Many people see both a CP504 notice and later a Letter 1058 and get understandably confused. In general:

• CP504 – Often focuses on levying state tax refunds and signals you are moving deeper into collections.
• Letter 1058 – Adds your formal right to a Collection Due Process hearing and is used before more aggressive levy actions like wage and bank levies.

Both are serious, but Letter 1058 is where:

• Your appeal clock becomes critical, and
• The risk of actual levies increases if you do nothing.

Your right to a Collection Due Process (CDP) hearing

One of the most important parts of Letter 1058 is the section informing you of your right to a Collection Due Process (CDP) hearing with the IRS Office of Appeals.

At a high level, a CDP hearing:

• Is an opportunity to have an independent Appeals officer review your case.
• Allows you to propose collection alternatives (payment plan, Offer in Compromise, etc.).
• Can, in many cases, pause most levy actions while your hearing is pending (if you request it on time).

The letter will list a deadline, often around 30 days from the date on the notice, to request this hearing using:

• Form 12153, Request for a Collection Due Process or Equivalent Hearing.

Missing that deadline doesn’t eliminate all options, but it changes the protections and sometimes the appeal path available to you.

Step 1: Read the letter carefully and note the deadline

Before anything else, find and write down:

• The date on Letter 1058.
• The deadline to request a CDP hearing.
• The tax year(s) and amounts involved.

Practical tips:

• Write the deadline on a sticky note and stick it to the notice.
• Scan or photograph the letter so it’s backed up.
• If you reach out for help, having this ready speeds things up.

Step 2: Make sure your tax returns are filed and accurate

It’s very hard to negotiate with the IRS if:

• You have unfiled returns, or
• Your balances come from Substitute for Return (SFR) assessments where the IRS filed for you.

Before or alongside your CDP request, you may need to:

• Prepare and file any missing returns for required years.
• Correct returns that are clearly wrong (with amended returns, if appropriate).
• Pull wage & income transcripts so you’re not guessing about old W-2s and 1099s.

If you haven’t filed in years, this guide can help frame the bigger picture:

• I Haven’t Filed Taxes in Years – Where Do I Start?

Step 3: Decide if requesting a CDP hearing is right for you

In many cases, requesting a CDP hearing is a smart move because it:

• Preserves important appeal rights, and
• Can pause most levy actions while the hearing is pending (if requested on time).

A CDP hearing is especially worth considering if:

• You disagree with the amount owed, or
• You can’t afford to pay in full and want to explore:
  • An installment agreement,
  • Currently Not Collectible status, or
  • An Offer in Compromise (OIC).

When I represent someone at this stage, we usually:

• Review the full picture (income, expenses, assets, compliance).
• Prepare Form 12153 with specific, realistic requests.
• Attach supporting documents when appropriate (budgets, returns, notices).

Step 4: Understand what happens if you do nothing

Ignoring Letter 1058 is almost always the most expensive choice. Possible outcomes include:

• Wage levy – The IRS sends a notice to your employer and takes a significant portion of each paycheck.
• Bank levy – The IRS instructs your bank to freeze funds and send them to the IRS up to the amount owed.
• Federal tax lien filings
• Continued accrual of penalties and interest.

Once a levy hits, you still have options, but:

• It’s much more stressful, and
• It can be harder to get the IRS to move quickly.

Step 5: Explore practical resolution options

Depending on your finances and compliance status, realistic options might include:

1. Full payment or short-term payoff

If you can pay in full or within a few months:

• Resolve the balance quickly and avoid long-term interest and penalties.
• May not need a CDP hearing if everything else is straightforward.

2. Installment Agreement

A payment plan with the IRS can:

• Prevent or stop levy actions once accepted, and
• Spread payments over time in a manageable way.

We match the agreement type to your situation (streamlined, guaranteed, or negotiated based on financials).

3. Currently Not Collectible (CNC)

If you truly cannot afford to pay anything beyond necessary living expenses, the IRS may:

• Mark your account as currently not collectible,
• Pause active collection efforts, while interest continues to accrue.

4. Offer in Compromise (OIC)

If you qualify, an Offer in Compromise allows you to settle for less than the full amount owed based on:

• Your ability to pay,
• Equity in assets, and
• Future income potential.

This is highly fact-specific and documentation-heavy. It’s not a quick “pennies on the dollar” gimmick — but in the right case, it can be life-changing.

How I typically handle a Letter 1058 case

When a taxpayer in Sugar Land, Fort Bend County, Katy, Richmond, or anywhere else calls me about Letter 1058, my process usually looks like this:

• Step 1 – Notice review. We look at the letter, verify balances and years, and identify the CDP deadline.
• Step 2 – Compliance check. Are all required returns filed and accurate? Do transcripts show anything unexpected?
• Step 3 – Resolution strategy. We choose between:
  • Payment in full / short-term payoff,
  • Installment agreement,
  • CNC, or
  • Exploring an OIC.
• Step 4 – Representation. With a signed Form 2848, I speak directly with the IRS so you’re not negotiating alone.
• Step 5 – Long-term planning. We work on withholding, estimated taxes, and realistic planning so this doesn’t happen again.

Where this fits in your bigger IRS notice journey

Letter 1058 is rarely the first sign of trouble. Many people have already seen:

• CP2000 – Underreported Income
• CP504 – Final Notice of Intent to Levy

Each notice is a step deeper into collections. Letter 1058 is the point where:

• Your rights are clearly laid out, and
• The risk of enforced collection becomes very real.

If you’re tired of feeling like you’re one unopened envelope away from disaster, it may be time to shift from crisis mode to structured representation and planning.

You can also review:

• Tax Advisor – Notice & IRS Representation
• Understanding LLC Tax Preparation Costs
• Capital Gains Tax Planning Strategies