If you’ve received a CP1058 Notice from the IRS, it’s crucial to understand what this means and what steps you should take next. This notice is a formal demand for payment and indicates that the IRS intends to levy your property or rights to property if the balance due is not paid or resolved. Here’s what you need to know.
What is a CP1058 Notice?
A CP1058 Notice is sent by the IRS when you have unpaid taxes and have not responded to previous notices. This notice serves as a final reminder that the IRS plans to take enforced collection action if the debt remains unpaid. The CP1058 outlines the amount you owe, including penalties and interest, and provides information on how you can settle the debt.
Got a CP1058 notice in the mail?
Time is of the essence.
Call (331) 215-7663 to reach out to the Licensed Tax Professionals at Taxx Resolution Inc right away to stop IRS harassment and secure your financial future. They are credentialed by the IRS to represent you and protect your interests
Key Points to Understand:
- 30-Day Window: Just like the LT11 letter, you have a 30-day period from the date of the CP1058 Notice to take action. If you don’t respond within this timeframe, the IRS will proceed with levying your assets.
- Right to Appeal: You have the right to request a Collection Due Process (CDP) hearing. This allows you to challenge the IRS’s actions, propose alternative payment arrangements, or dispute the debt altogether.
- Options for Resolution: The notice includes information on various options for resolving your tax debt, such as setting up an installment agreement or submitting an Offer in Compromise.
Steps to Take Immediately:
- Read the Notice Carefully: Make sure you understand the amount owed, the due date, and the instructions for responding. Misreading or overlooking details can lead to costly mistakes.
- Contact a Tax Professional: Navigating IRS procedures can be challenging. A tax professional can help you understand your options and take the right steps to address the notice.
- Consider Your Financial Situation: Review your financial situation to determine which resolution option is best for you. This could include setting up a payment plan, making a lump-sum payment, or exploring other relief options.
Why You Shouldn’t Ignore the CP1058 Notice:
Ignoring this notice can result in serious consequences:
- Levies on Wages and Bank Accounts: The IRS can seize your wages and bank accounts to cover the unpaid debt.
- Liens on Property: The IRS may place a lien on your property, which can affect your credit score and your ability to sell or refinance your home.
- Additional Penalties and Interest: The longer the debt goes unpaid, the more penalties and interest accrue, increasing the amount you owe.
Quick Recap:
- What: The CP1058 Notice is a final warning before the IRS takes enforcement action.
- When: You have 30 days from the date of the notice to respond.
- How: You can request a CDP hearing, pay the amount due, or work out a payment arrangement.
Don’t wait until it’s too late to address a CP1058 Notice.
Taking immediate action can help you avoid severe financial consequences and set you on a path to resolving your tax issues.
Reach out to the Licensed Tax Professionals at Taxx Resolution today at (331) 215-7663 for a free consultation.
