Understanding IRS Letter 1058 and LT-11 Notice – How Mike Habib, EA Can Help You Resolve Tax Issues

Receiving a notice from the IRS can be a nerve-wracking experience, especially when it involves serious collection actions. Two of the most significant notices taxpayers may encounter are IRS Letter 1058 and the LT-11 Notice. These documents are Final Notices of Intent to Levy and serve as a warning that the IRS is prepared to take aggressive steps to collect unpaid taxes. However, with the right guidance and representation, you can resolve these issues effectively and protect your assets.

In this comprehensive FAQ, we’ll break down everything you need to know about IRS Letter 1058 and LT-11 Notice, their implications, and how the Los Angeles, CA based tax representation firm of Mike Habib, EA can help you navigate these challenges.

Call us today at 1-877-788-2937

What Are IRS Letter 1058 and LT-11 Notice?

What is IRS Letter 1058?

IRS Letter 1058, also known as the Final Notice of Intent to Levy and Notice of Your Right to a Hearing, is a formal communication from the IRS indicating that they intend to levy (seize) your assets to collect unpaid taxes. This letter is typically sent after previous attempts to collect the debt have been unsuccessful.

What is the LT-11 Notice?

The LT-11 Notice is nearly identical to IRS Letter 1058. It serves the same purpose: to notify taxpayers of the IRS’s intent to levy and inform them of their right to request a Collection Due Process (CDP) hearing. The LT-11 Notice is often issued in cases where the IRS is escalating its collection efforts.

Are Letter 1058 and LT-11 the Same?

Yes, both notices serve the same function and carry the same legal weight. The primary difference lies in the format and the department within the IRS that issues them. Regardless of which notice you receive, the implications and required actions are the same.

Why Did I Receive IRS Letter 1058 or LT-11 Notice?

You may receive one of these notices if:

You Have Unpaid Taxes: The IRS has determined that you owe taxes and previous notices (such as CP-501 or CP-503) have gone unanswered.
You Ignored Earlier Notices: The IRS typically sends multiple notices before escalating to a Letter 1058 or LT-11.
You Failed to Respond or Pay: If you did not respond to earlier notices or set up a payment plan, the IRS may issue a final notice.
You Have a Balance Due: The IRS is attempting to collect unpaid taxes, penalties, and interest.

What Does IRS Letter 1058 or LT-11 Mean for Me?

What Is the Purpose of These Notices?

The primary purpose of IRS Letter 1058 and LT-11 is to:

Notify you of the IRS’s intent to levy your assets.
Inform you of your right to request a Collection Due Process (CDP) hearing within 30 days.
Provide you with an opportunity to resolve the issue before enforcement actions begin.

What Happens If I Ignore the Notice?

Ignoring IRS Letter 1058 or LT-11 can lead to severe consequences, including:

Asset Seizure: The IRS can levy your wages, bank accounts, Social Security benefits, and other assets.
Tax Liens: The IRS may file a Notice of Federal Tax Lien, which can damage your credit and make it difficult to sell or refinance property.
Increased Penalties and Interest: The longer the debt remains unpaid, the more penalties and interest will accrue.
Loss of Appeal Rights: If you fail to request a CDP hearing within 30 days, you lose the right to challenge the levy in court.

What Should I Do If I Receive IRS Letter 1058 or LT-11?

Step 1: Read the Notice Carefully

The first step is to thoroughly review the notice to understand:

The amount owed.
The deadline for requesting a CDP hearing.
The IRS’s proposed actions.

Step 2: Verify the Accuracy of the Notice

Compare the information in the notice with your tax return and financial records. If you believe the IRS made an error, you may need to provide documentation to dispute the notice.

Step 3: Request a Collection Due Process (CDP) Hearing

You have 30 days from the date of the notice to request a CDP hearing. This hearing allows you to:

Dispute the tax liability.
Propose alternative solutions, such as a payment plan or Offer in Compromise.
Prevent the IRS from taking enforcement actions while your case is under review.

Step 4: Pay the Balance or Set Up a Payment Plan

If the notice is accurate and you agree with the amount owed, you can:

Pay the balance in full.
Set up a payment plan, such as an Installment Agreement or Offer in Compromise.

Step 5: Seek Professional Assistance

Dealing with the IRS can be complex and intimidating. A tax professional like Mike Habib, EA can help you navigate the process, protect your rights, and achieve the best possible outcome.

How Can Mike Habib, EA Help You with IRS Letter 1058 or LT-11?

Who Is Mike Habib, EA?

Mike Habib is an Enrolled Agent (EA) and a highly experienced Los Angeles, CA based tax representation professional. He specializes in helping individuals and businesses resolve IRS and state tax issues, including those involving IRS Letter 1058 and LT-11.

How Can Mike Habib, EA Assist You?

Here’s how Mike Habib, EA can help you address IRS Letter 1058 or LT-11:

1. Comprehensive Case Review

Mike Habib, EA will thoroughly review your tax situation, including:

The details of the notice.
Your tax returns and financial records.
Any discrepancies or errors in the IRS’s calculations.

2. Requesting a CDP Hearing

If you receive IRS Letter 1058 or LT-11, Mike Habib, EA can help you file a timely request for a Collection Due Process (CDP) hearing. During the hearing, he will:

Present your case to the IRS.
Dispute the tax liability if applicable.
Propose alternative solutions to resolve the debt.

3. Negotiating Payment Plans

If you cannot pay the full amount owed, Mike Habib, EA can negotiate a payment plan on your behalf, such as:

Installment Agreements: Monthly payments to settle the debt over time.
Offer in Compromise: A settlement option that allows you to pay less than the full amount owed if you meet certain criteria.

4. Penalty Abatement

In some cases, taxpayers may qualify for penalty abatement, which reduces or eliminates penalties associated with unpaid taxes. Mike Habib, EA can evaluate your eligibility and advocate for penalty relief.

5. Preventing Asset Seizure

Mike Habib, EA will work to prevent the IRS from levying your assets by resolving the issue before enforcement actions begin.

6. Representation Before the IRS

As an Enrolled Agent, Mike Habib is authorized to represent taxpayers before the IRS. He will handle all communications and negotiations with the IRS on your behalf, ensuring that your rights are protected.

7. Long-Term Tax Planning

In addition to resolving the immediate issue, Mike Habib, EA can provide guidance on how to avoid similar problems in the future. This includes tax planning strategies, accurate record-keeping, and ensuring compliance with tax laws.

Why Choose Mike Habib, EA?

1. Expertise and Experience

With years of experience in tax representation, Mike Habib, EA has successfully resolved a wide range of tax issues for clients across the United States.

2. Personalized Service

Mike Habib, EA takes a personalized approach to each case, tailoring his services to meet the unique needs of each client.

3. Proven Track Record

The firm has a proven track record of helping clients resolve tax issues, reduce penalties, and achieve favorable outcomes.

4. Stress-Free Process

Dealing with the IRS can be stressful, but with Mike Habib, EA handling your case, you can rest assured that the process will be managed efficiently and professionally.

Frequently Asked Questions

1. Can I Ignore IRS Letter 1058 or LT-11?

No, ignoring these notices can lead to severe consequences, including asset seizure, tax liens, and increased penalties. It’s essential to take prompt action to resolve the issue.

2. What Is a Collection Due Process (CDP) Hearing?

A CDP hearing is an opportunity to dispute the tax liability, propose alternative solutions, and prevent the IRS from taking enforcement actions while your case is under review.

3. How Long Do I Have to Respond to the Notice?

You have 30 days from the date of the notice to request a CDP hearing. If you miss this deadline, the IRS can proceed with enforcement actions.

4. Can I Set Up a Payment Plan with the IRS?

Yes, the IRS offers several payment options, including Installment Agreements and Offers in Compromise. A tax professional like Mike Habib, EA can help you determine the best option for your situation.

5. How Can I Contact Mike Habib, EA?

You can contact Mike Habib, EA through his website or by phone to schedule a consultation. He will provide expert guidance and representation to help you resolve your tax issue.

Receiving IRS Letter 1058 or LT-11 Notice can be a daunting experience, but it’s important to remember that you have options and resources available to address the issue. By understanding the notice, taking prompt action, and seeking professional assistance, you can resolve the matter and protect your financial future.

The Los Angeles, CA based tax representation firm of Mike Habib, EA is here to help you every step of the way. Whether you need assistance disputing the notice, setting up a payment plan, or navigating the complexities of IRS procedures, Mike Habib, EA has the expertise and experience to provide the support you need.

Don’t let IRS Letter 1058 or LT-11 disrupt your peace of mind. Contact Mike Habib, EA today to schedule a consultation and take the first step toward resolving your tax issue. With the right guidance and representation, you can achieve a favorable outcome and regain control of your financial future.