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✓ Practitioner Verified Updated for 2026 | IRS Letter 1058 / LT11 — Final Notice of Intent to Levy
Tax Intelligence Engine › Forms Library › IRS Letter 1058 / LT11 — Final Notice of Intent to Levy

IRS Letter 1058 / LT11 — Final Notice of Intent to Levy

The complete practitioner guide to IRS Letter 1058 / LT11 — covering the CDP hearing right, the 30-day response deadline, collection alternatives, and the Tax Court appeal process.

30 DaysCDP Hearing Request Deadline
CDP HearingLast Chance to Stop Levy
Tax CourtAppeal CDP Determination
Collection AlternativesIA, CNC, OIC Available
IRC §6330, §6331, §6213 Letter 1058 / LT11: Final Notice of Intent to Levy — CDP hearing right CDP hearing: Request within 30 days — preserves Tax Court appeal right Collection alternatives: IA, CNC, OIC — request at CDP hearing

What is IRS Letter 1058 / LT11?

IRS Letter 1058 (or LT11, which is the same notice in a different format) is the 'Final Notice of Intent to Levy and Notice of Your Right to a Hearing.' It is the last notice in the IRS collection sequence before the IRS begins levying the taxpayer's assets (bank accounts, wages, accounts receivable, retirement accounts). The Letter 1058 / LT11 triggers the taxpayer's Collection Due Process (CDP) hearing right under §6330.

The CDP hearing right is one of the most important taxpayer rights in the collection process. By requesting a CDP hearing within 30 days of the date of the Letter 1058 / LT11, the taxpayer can: (1) raise collection alternatives (installment agreement, CNC, OIC); (2) challenge the underlying tax liability (if the taxpayer has not previously had an opportunity to dispute the liability); and (3) preserve the right to appeal the IRS's collection determination to the U.S. Tax Court.

The 30-Day CDP Hearing Request Deadline

The taxpayer must request a CDP hearing within 30 days of the date of the Letter 1058 / LT11. The CDP hearing request must be made in writing (using Form 12153, Request for a Collection Due Process or Equivalent Hearing) and must be sent to the IRS address shown on the Letter 1058 / LT11. The CDP hearing request must be postmarked within 30 days of the date of the notice.

If the taxpayer misses the 30-day CDP hearing deadline, they may still request an Equivalent Hearing within one year of the date of the Letter 1058 / LT11. The Equivalent Hearing provides the same collection alternatives as the CDP hearing but does not preserve the right to appeal to the Tax Court. Practitioners should advise clients who receive a Letter 1058 / LT11 to request a CDP hearing immediately — do not wait.

What Happens at the CDP Hearing?

The CDP hearing is conducted by an IRS Appeals Officer who is independent of the Collection function. At the CDP hearing, the taxpayer can: (1) raise collection alternatives (installment agreement, CNC, OIC, innocent spouse relief, penalty abatement); (2) challenge the underlying tax liability (if the taxpayer has not previously had an opportunity to dispute the liability — e.g., if the tax was assessed by substitute for return); and (3) raise procedural issues (e.g., the IRS failed to follow proper collection procedures).

The Appeals Officer will issue a Notice of Determination after the CDP hearing, which sets forth the Appeals Officer's determination regarding the collection alternatives and any other issues raised by the taxpayer. The taxpayer has 30 days from the date of the Notice of Determination to appeal the determination to the U.S. Tax Court.

Collection Alternatives at the CDP Hearing

The most common collection alternatives raised at CDP hearings are: (1) Installment Agreement (IA) — allows the taxpayer to pay the balance due in monthly installments over up to 72 months (or longer for partial payment installment agreements); (2) Currently Not Collectible (CNC) status — the IRS temporarily suspends collection activity if the taxpayer can demonstrate that they have no ability to pay; (3) Offer in Compromise (OIC) — allows the taxpayer to settle their tax liability for less than the full amount owed; and (4) Innocent Spouse Relief — allows a spouse to be relieved of liability for taxes owed by the other spouse.

Practitioners should prepare a detailed financial analysis (using Form 433-A for individuals or Form 433-B for businesses) before the CDP hearing to support the collection alternative being requested. The financial analysis should document the taxpayer's income, expenses, assets, and liabilities.

Tax Court Appeal

If the taxpayer disagrees with the Appeals Officer's determination, they can appeal the determination to the U.S. Tax Court within 30 days of the date of the Notice of Determination. The Tax Court has jurisdiction to review CDP determinations and can order the IRS to accept a collection alternative or to release a levy. The Tax Court reviews CDP determinations under an abuse of discretion standard (for collection alternatives) or a de novo standard (for challenges to the underlying tax liability).

Practitioners should advise clients who disagree with the CDP determination to consult with a tax attorney before filing a Tax Court petition. The Tax Court petition must be filed within 30 days of the date of the Notice of Determination — this deadline is jurisdictional and cannot be extended.

Frequently Asked Questions

IRS Letter 1058 / LT11 is the Final Notice of Intent to Levy that triggers the taxpayer's Collection Due Process (CDP) hearing right under §6330. It is the last notice before the IRS begins levying the taxpayer's assets (bank accounts, wages, accounts receivable, retirement accounts).

The taxpayer must request a CDP hearing within 30 days of the date of the Letter 1058 / LT11 using Form 12153. If the deadline is missed, the taxpayer may still request an Equivalent Hearing within one year, but loses the right to appeal to the Tax Court.

At the CDP hearing, the taxpayer can raise collection alternatives (IA, CNC, OIC, innocent spouse relief, penalty abatement), challenge the underlying tax liability (if not previously disputed), and raise procedural issues. The Appeals Officer will issue a Notice of Determination after the hearing.

The most common collection alternatives are: Installment Agreement (IA), Currently Not Collectible (CNC) status, Offer in Compromise (OIC), and Innocent Spouse Relief. Practitioners should prepare a detailed financial analysis (Form 433-A or 433-B) before the CDP hearing.

The taxpayer has 30 days from the date of the Notice of Determination to appeal the CDP determination to the U.S. Tax Court. The Tax Court petition must be filed within 30 days — this deadline is jurisdictional and cannot be extended.

More Tax Planning FAQs

What is the penalty for failing to file this form on time?
Failure-to-file penalties are generally 5% of unpaid tax per month (up to 25%). Failure-to-pay penalties are 0.5% per month (up to 25%). Interest accrues on unpaid tax at the federal short-term rate plus 3%. Penalties can be waived for reasonable cause (illness, natural disaster, IRS error). First-time penalty abatement is available for taxpayers with a clean compliance history.
What is the statute of limitations for IRS assessment related to this form?
The IRS generally has three years from the later of the return due date or filing date to assess additional tax. If the taxpayer omits more than 25% of gross income, the statute is extended to six years. There is no statute of limitations for fraudulent returns or failure to file. Taxpayers should retain tax records for at least seven years to cover the extended statute of limitations.
Can this form be filed electronically?
Most IRS forms can be filed electronically through IRS e-file or through tax preparation software. Electronic filing is faster, more accurate, and provides confirmation of receipt. Some forms (such as Form 2553 and Form 8832) must be filed on paper. The IRS mandates electronic filing for businesses that file 10 or more information returns (1099s, W-2s) starting in 2024.
What records should be retained to support this form?
Taxpayers should retain all records supporting the information reported on this form for at least seven years (to cover the extended statute of limitations for omission of income). Records include: receipts, invoices, bank statements, brokerage statements, contracts, and correspondence with the IRS. Electronic records are acceptable if they are accurate, complete, and accessible.
What is the first-time penalty abatement (FTA) program?
The IRS First-Time Penalty Abatement (FTA) program waives failure-to-file, failure-to-pay, and failure-to-deposit penalties for taxpayers who have a clean compliance history (no penalties in the three prior years, all required returns filed, and no outstanding tax debt). FTA is available by calling the IRS or submitting a written request. It is one of the easiest ways to get a penalty waived.
How does this form interact with state tax returns?
Federal tax forms often have state counterparts that must be filed separately. State tax laws do not always conform to federal tax law, so the state return may require different calculations or additional schedules. Taxpayers should review their state’s conformity to federal tax law changes and file all required state returns by the applicable deadlines.
What is the difference between a tax deduction and a tax credit?
A tax deduction reduces taxable income, saving taxes at the marginal rate. A tax credit directly reduces tax liability dollar-for-dollar. A $1,000 deduction saves $370 for a taxpayer in the 37% bracket; a $1,000 credit saves $1,000 regardless of the tax bracket. Refundable credits can reduce tax liability below zero, resulting in a refund. Non-refundable credits can only reduce tax liability to zero.
How does the alternative minimum tax (AMT) affect this form?
The AMT is a parallel tax system that disallows certain deductions and adds back preference items. Taxpayers who owe AMT must complete Form 6251 to calculate their AMT liability. Common AMT triggers include: ISO exercises, large state tax deductions, accelerated depreciation, and passive activity losses. Taxpayers should model both regular tax and AMT before making decisions that could trigger AMT.
How should a tax professional set up a response process when a client receives an IRS Letter 1058?
When a client receives IRS Letter 1058, the initial step is to verify the underlying tax liability and confirm that all notices leading up to the Final Notice of Intent to Levy were properly issued per §6331(d). Establish a clear timeline for response, as the taxpayer typically has 30 days to request a Collection Due Process hearing or otherwise resolve the debt before levy action proceeds. Document all client communications and gather relevant financial information to evaluate collection alternatives such as installment agreements or an offer in compromise.
What are the specific IRS filing deadlines and procedural steps a practitioner must follow after receiving an IRS Letter 1058?
The IRS Letter 1058 serves as the Final Notice of Intent to Levy, indicating that unless the taxpayer responds within 30 days of the notice date, the IRS may proceed with enforced collection actions. Tax professionals must file any appeals, Collection Due Process requests, or payment arrangements within this 30-day window to halt levy actions. Additionally, practitioners should submit any timely filed Form 12153 (Request for a Collection Due Process Hearing) in accordance with §6330 to preserve the client's appeal rights.
What documentation is critical to maintain to support a client's case when contesting an IRS Letter 1058 levy notice?
Maintaining comprehensive documentation is crucial when contesting an IRS Letter 1058. This includes copies of all prior IRS notices, proof of timely payments or offers in compromise, correspondence with the IRS, and any financial documentation that supports hardship claims or alternative payment arrangements. Per §6330, documentation evidencing the validity of the underlying tax liability and the client's compliance history can be instrumental in successful appeals or collection due process hearings.
What triggers an IRS audit or heightened scrutiny related to a Final Notice of Intent to Levy, and how can practitioners mitigate these risks?
A Final Notice of Intent to Levy often follows unsuccessful collection attempts and may coincide with audit activity if discrepancies or unreported income are identified during IRS examinations. Triggers include substantial unpaid tax liabilities, repeated failure to respond to IRS notices, and flagged discrepancies per §6331. Practitioners should proactively review client returns for accuracy, ensure timely responses to IRS correspondence, and negotiate payment plans or appeals to mitigate the risk of enforced collection.
How should a practitioner advise a client who has both a CP504 Notice of Intent to Levy and a Letter 1058 regarding the same tax debt?
When a client has both a CP504 (Final Notice of Intent to Levy and Notice of Your Right to a Hearing) and Letter 1058, these notices typically relate to the same collection process, with the CP504 often preceding the Letter 1058. Advise the client that the Letter 1058 formalizes the IRS's intent to levy imminently unless a Collection Due Process hearing is requested. Ensure any appeals or payment arrangements are coordinated and filed promptly to halt levy action, referencing procedural rights under §6330 and §6331.
How does the IRS Letter 1058 compare to other IRS levy-related notices in terms of taxpayer rights and collection procedures?
The IRS Letter 1058 is the final administrative notice before levy action under §6331(d), providing taxpayers with a last opportunity to respond and exercise appeal rights per §6330. It differs from earlier notices such as CP504 or CP90, which serve as preliminary warnings but do not necessarily guarantee a right to a Collection Due Process hearing. The Letter 1058 requires strict adherence to response deadlines to preserve appeal rights and avoid immediate levy enforcement.
What key questions should tax professionals ask their clients to effectively address issues arising from an IRS Letter 1058?
To effectively manage a Letter 1058 situation, professionals should ask clients: Have you received any prior IRS notices related to this debt? Have you attempted to resolve or pay this liability? What is your current financial situation, including assets and income? Are there any disputes regarding the underlying tax assessment? These questions help determine viable collection alternatives, potential for appeals under §6330, and the urgency of filing timely responses.

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Professional Disclaimer

The information on this page is intended for licensed tax professionals (CPAs, EAs, and tax attorneys) and is provided for educational and research purposes only. Tax law is complex and fact-specific — all strategies discussed are subject to limitations, phase-outs, and conditions that may not apply to every client situation. Practitioners should independently verify all information against current IRS guidance, Treasury Regulations, and applicable state law before advising clients. This content does not constitute legal or tax advice.

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