You owe taxes to the Internal Revenue Service. You know you owe taxes to the Internal Revenue Service and you have received notices from the Internal Revenue Service. However, you have been scared and unable to pay the tax debt so you have not contacted the IRS or established an agreement to resolve the tax debt. One day you receive a notice from the Internal Revenue Service that states, “Letter 1058” and “Final Notice of Intent to Levy.” What is this notice?
The Final Notice of Intent to Levy (Letter 1058) is exactly what it says. This notice is the IRS giving you your last chance to formalize an agreement before the IRS will take enforcement action to collect the tax such as a IRS bank levy, IRS wage garnishment or the seizure of assets. Therefore, do not ignore this notice like you may have the prior IRS notices!
Generally speaking, the IRS will issue a handful of notices when a tax debt is due. Initially the notices are “nice” maybe acting as a reminder that you owe taxes. When you do not respond to these notices, the IRS will issue notices that are not so “nice” and eventually the Final Notice of Intent to Levy.
A Final Notice of Intent to Levy may be issued on one period of tax debt or can be issued on multiple periods of tax debts depending upon the situation. If you receive a final notice, immediate action is required. The issuance of the Final Notice of Intent to Levy starts the clock ticking for you as the taxpayer to exercise certain rights. A taxpayer has thirty (30) days from the date of the Final Notice of Intent to Levy to make the request for a Collection Due Process Hearing. If the Request for a Collection Due Process Hearing is not made within 30 days from the date on the final notice, the taxpayer has lost their rights to request such a hearing, but may still request an Equivalent Hearing. The difference between a Collection Due Process Hearing and an Equivalent Hearing is that the Request for a Collection Due Process Hearing will act as an automatic hold on any enforcement action for the periods the hearing will cover, whereas you are not guaranteed a hold on enforcement when you request an Equivalent Hearing. Therefore, if you are concerned about and wish to prevent bank levies and wage garnishments, you will want to make sure you request the Collection Due Process Hearing prior to the deadline.
The failure to request a Collection Due Process Hearing or establish a formal agreement with the Internal Revenue Service is likely to lead to enforcement action on the tax debt. The IRS can levy monies in your bank account, garnish wages and even seize assets.
If you have received a Final Notice of Intent to Levy, you should consult with a tax attorney or tax professional immediately. Do NOT ignore this notice! You can contact a Denver tax attorney at The McGuire Law Firm if you have any questions regarding a tax issue or notice from the IRS.
Contact The McGuire Law Firm to schedule your free consultation with a Denver tax attorney. Offices in Denver and Golden Colorado.