Letter 1058 / LT11 Final Notice of Intent to Levy and CDP Hearing Rights

Author: Chenchen Liu, CPA ｜ YCL Tax, Accounting & Advisory

Bottom line

Letter 1058 and LT11 are typically the IRS Final Notice of Intent to Levy and Notice of Your Right to a Hearing. They are higher-stakes than CP501–CP504 reminders: in many cases you have about 30 days (use the deadline printed on the letter) to request a Collection Due Process (CDP) hearing on Form 12153. Missing that window can narrow later options. A levy may reach wages, bank accounts, and certain other rights (subject to law and the notice). Installment agreements, offers in compromise (OIC), and Currently Not Collectible (CNC) status may be discussed as educational options in a hearing—they are not a promise that a levy will stop or that any request will be approved. For Cary / RTP individuals and business responsible parties, read the rights page, calendar the date, and decide whether to pay, request a hearing, or seek professional help. This article is high-stakes deadline education and compliance planning only. It does not promise a hearing outcome, levy release, or Tax Court success.

Background

Before levying property, the IRS generally must send a notice of intent to levy and advise you of hearing rights (statutory collection and hearing framework; practical letter numbers often include Letter 1058 or LT11—trust the envelope you hold). Taxpayer Advocate Service and IRS levy materials stress acting right away if you receive a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. Publication 1660 summarizes collection appeal rights; Publication 594 covers the broader collection process; Form 12153 (Request for a Collection Due Process or Equivalent Hearing) is the usual CDP / equivalent-hearing request form.

How this relates to CP504 (education only—not a diagnosis of your file): many CP504 notices already carry §6331(d) intent-to-levy final-reminder language; Letter 1058 / LT11 more clearly attach CDP hearing rights and an approximate 30-day request window. The letters may arrive in sequence, or account paths may use different numbers—follow the notice number and the rights text, not memory. A lien is a public claim; a levy is an actual seizure. For bank levies, funds are often held for a period (public materials commonly describe about 21 days) before remittance—confirm current IRS levy pages. Separately, after a notice of intent to levy, the failure-to-pay monthly rate may rise to about 1% if tax remains unpaid beyond the statutory window (Notice 746 / §6651; subject to current IRS published rates/amounts). This article does not teach “how to win an appeal”; it helps you recognize the window and the named options.

What changed / options compared

Note: The comparison contrasts common misconceptions with compliance framing. There is no single statutory “Letter 1058 flat penalty”; a levy collects the assessed balance. Rates and procedures are subject to current IRS published rates/amounts and your letter.

1. What the letter is

- Common misconception: Another ordinary bill you can treat like CP501 for a few more weeks.

- Compliance framing: A final intent-to-levy notice with hearing rights; the calendar often centers on about 30 days (use the printed date).

2. Form 12153

- Common misconception: A phone call equals a CDP request, or a casual letter automatically extends the deadline.

- Compliance framing: Timely Form 12153 (and required copies / mailing method) is generally required; oral contact usually does not replace a timely filing.

3. Missing the hearing request

- Common misconception: You can always file later for a fully equivalent process.

- Compliance framing: You may be limited to an Equivalent Hearing or face further limits—see Pub. 1660 and your letter; do not assume the CDP window is reversible.

4. What a levy can reach

- Common misconception: The IRS can only touch refunds, never wages or bank accounts.

- Compliance framing: Public materials list wages and other income, bank accounts, business and personal assets, and certain Social Security benefits among possible sources; wage levies are often continuous; bank levies follow different rules.

5. What a hearing can discuss

- Common misconception: CDP automatically wipes the tax, or that “pennies on the dollar” OIC approval is certain.

- Compliance framing: Alternatives such as installment agreements, OIC, or CNC—and some procedural issues—may be discussed. That is option education, not an approved outcome.

6. Not the same as SNOD / Tax Court

- Common misconception: The Letter 1058 ~30-day clock is the same as Letter 3219 (SNOD) ~90-day Tax Court clock.

- Compliance framing: Different notices, different rights. SNOD concerns deficiency and Tax Court petition timing; CDP concerns collection action and hearings. Do not mix deadlines.

7. Business responsible parties

- Common misconception: Only the company account is at risk; personal wages are always safe.

- Compliance framing: Risk depends on what was assessed and who is liable; employment-tax paths may implicate individuals separately (see TFRP education elsewhere)—no blanket conclusion here.

Self-check: are you affected?

1. The envelope or first page shows Letter 1058, LT11, or Final Notice of Intent to Levy and Notice of Your Right to a Hearing — Highlight the hearing-request deadline immediately.

2. You already climbed CP14 → CP501 / CP503 / CP504 without resolving the balance — This final intent-to-levy letter may be next or already delivered.

3. Fewer than two weeks remain on the printed date — Prioritize full payment, a timely Form 12153, or both (education-level fork; complex cases need professional judgment).

4. You rely on wages or hold sizable bank balances — Review public wage vs bank levy mechanics and build a cash-flow contingency plan (calm planning, not scare tactics).

5. You want to discuss IA / OIC / CNC — Assemble financials and any unfiled periods for hearing or collection talks; this article does not promise approval.

6. You still dispute the underlying tax — Separate collection-hearing rights from deficiency / SNOD paths; do not use a 1058 30-day window as a substitute for a 90-day Tax Court deadline.

7. Cary / RTP bilingual households with state collection mail — Manage federal levy rights and NCDOR procedures on separate calendars.

Simplified example (illustrative only)

Example — Cary wage earner receives Letter 1058

Assume Mr. Liu has an illustrative federal balance of about $9,500 (tax, penalties, and interest) after ignoring CP14 and CP504. He receives Letter 1058 stating intent to levy and a CDP request deadline (illustrative: about 30 days from the notice date).

- Path A: He pays the full balance on the letter before the deadline → further levy action on that balance typically stops once payment posts and the IRS account reflects it.

- Path B: He timely mails a completed Form 12153 stating he wants to discuss an installment alternative → he may enter the CDP process; collection steps are often constrained by procedure, but that is not a promise a levy will never issue or that an installment will be approved.

- Path C: He misses the deadline with neither payment nor Form 12153 → wage or bank levy risk rises; FTP may move toward about 1% per month after intent-to-levy rules (subject to current IRS published rates/amounts).

Dollars and days are illustrative only. Your rights dates are those printed on your letter. This article does not compute a case and does not promise any hearing or levy outcome.

Action plan and timeline

1. Today (0–24 hours): Copy or scan every page of Letter 1058 or LT11; highlight the hearing-request deadline, tax periods, and phone number.

2. Confirm notice type: Compare against CP504 and SNOD (Letter 3219) so you do not use the wrong clock.

3. Decision tree before the deadline: (1) Pay in full if you can and keep confirmations; (2) if you need a hearing, complete Form 12153 on time with required mailing proof; (3) if facts are complex, contact a licensed professional early—do not wait until the last day.

4. Assemble materials: Recent pay stubs, bank summaries, necessary living expenses, unfiled periods, proof of payments—for arrangement or hearing discussions (education checklist).

5. If a third-party levy already issued: Follow current IRS levy release / hardship public guidance; outcomes remain case-specific.

6. North Carolina in parallel: File state notices separately so a federal window does not cause a state default.

7. When unsure: Book a YCL Free Consultation with CPA Chenchen Liu and Gloria to read the rights page and list Form 12153 / payment documents—without promising levy stoppage or hearing success.

How YCL can help

YCL Tax, Accounting & Advisory (Cary / RTP + Shanghai), with CPA Chenchen Liu and Gloria, supports bilingual compliance planning:

1. Letter identification and calendar — Confirm whether you hold a CDP-rights final intent-to-levy notice and mark the Form 12153 window.

2. Form 12153 education prep — Explain form sections, attachments, and mailing proof (no promise of acceptance or success).

3. Collection-alternative framing — Map when installment, OIC, or CNC language appears in public materials and what financials are typically needed (education—not an approval pledge).

4. Levy-risk briefing — Explain public wage/bank levy mechanics and build an emergency document list.

5. Path separation — Keep CDP ~30-day rights distinct from SNOD ~90-day Tax Court timing.

6. Two-office support — Cary for U.S. collection letters; Shanghai for cross-border income and asset explanations.

7. Free Consultation — Bring the full 1058/LT11 plus prior CP letters for a next-step list—without promising results.

FAQ

Q: I already called the IRS. Do I still need Form 12153?

A: A phone call usually does not replace a timely Form 12153 filed as the letter instructs. If you need CDP rights, follow the form and keep proof of delivery.

Q: If I request CDP, am I protected from any levy?

A: Not automatically. A timely, valid CDP request often constrains some collection acts, but facts, completeness, and later decisions still matter. This article does not promise that a levy will stop.

Q: Why might FTP rise to about 1% per month?

A: Published rules provide that after a notice of intent to levy, if tax remains unpaid beyond the statutory window, the failure-to-pay monthly rate may increase from about 0.5% to about 1% (see Notice 746 / the IRS Failure to Pay page). Application is subject to current IRS published rates/amounts and your account.

Book a consultation

YCL Tax, Accounting & Advisory

Web: yclcpa.com ｜ Email: info@yclcpa.com

Phone: 919-802-8376 / 980-202-0666 ｜ WeChat: YCLUSA

U.S. office: 1140 Kildaire Farm Rd. STE 208, Cary, NC 27511

Shanghai office: 上海佳通路 31 弄中冶祥腾城市广场 2-516

Free Consultation: please bring the full Letter 1058 or LT11, prior CP14/CP504 collection mail, and wage/bank plus unfiled-period lists.

Disclaimer

This article is general information only. It is not personalized tax, legal, collection-representation, litigation, or investment advice. Hearing rights, levy procedures, and penalty rates vary by case and current IRS rules—verify your letter and the latest IRS pages. For advice about your situation, consult a licensed professional. YCL does not promise levy stoppage, hearing outcomes, installment/OIC/CNC approval, or any collection result.