This letter is serious, but it also comes with a right to be heard by an independent office. Here is what is at stake in the next 30 days and how to ask for a hearing.
IRS Letter 1058 and LT11: Your Final Notice Before a Levy and Your Right to a Hearing
By Damian Gerry on LinkedIn (opens in a new tab), Founder
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Yes, a Letter 1058 or LT11 is the IRS's final notice before it can levy, and it is also your notice of the right to a hearing. If you request a Collection Due Process (CDP) hearing on Form 12153 by the date shown on the letter, levy action on those tax periods is generally put on hold while the hearing is pending.
Both letters carry the same message: the IRS intends to seize property or rights to property to pay an overdue balance. The Taxpayer Advocate Service says Letter 1058 is usually sent by a Revenue Officer. The law requires this notice at least 30 days before the first levy, unless collection is in jeopardy. For many people it follows a CP504, which our guide to IRS Notice CP504 explains.
Your two deadlines at a glance
The date on the letter starts two clocks. Which one you meet decides what kind of hearing you get.
| Question | CDP hearing | Equivalent hearing |
|---|---|---|
| Deadline to ask | On or before 30 days after the date of the notice | Within one year, starting the day after the date of the notice |
| Levy on those periods | Suspended while the hearing and any appeal are pending | Not prohibited by law |
| 10-year collection clock | Suspended while the hearing is pending | Not suspended |
| If you disagree with Appeals | You may petition the Tax Court within 30 days of the determination | Appeals' decision is final; no Tax Court review |
| Form | Form 12153 | Form 12153 |
The TAS notes that the CDP deadline on the letter cannot be extended. Missing it does not end your options, but it costs you the levy protection and the right to go to court.
What the IRS can levy
The IRS lists the property it can take after this notice:
- Wages and other income
- Bank accounts
- Business assets
- Personal assets, including your car and home
- State tax refunds and Alaska Permanent Fund Dividends
- Social Security benefits
Two details matter if you are watching your paycheck or bank account. A wage levy is continuous, though a portion of your wages is exempt. With a bank levy, the bank holds the funds for 21 days and then sends them to the IRS.
What you can raise at a hearing
A CDP hearing is held by the IRS Independent Office of Appeals with an officer who had no prior involvement in your case. Under the tax code, you can raise spousal defenses, challenge whether the levy is appropriate, and offer collection alternatives such as a bond, other assets, an installment agreement, or an offer in compromise.
The options Appeals can consider
| Option | What it is | What to know |
|---|---|---|
| Installment agreement | Monthly payments on the balance | Appeals can arrange one as part of the hearing |
| Offer in compromise | An offer that may let an eligible taxpayer settle for less than the full balance | You may qualify only if you meet the IRS's eligibility rules; it can be submitted during the hearing |
| Currently not collectible (hardship) | A finding that the account should not be in collection right now | The IRS must release a levy that causes economic hardship, so you can ask for this status at the hearing |
| Disputing the tax itself | Arguing you do not owe the amount | Allowed only if you did not receive a notice of deficiency or did not otherwise have a chance to dispute the tax |
Appeals usually needs your financial picture to weigh an alternative, often on Form 433-A for individuals or Form 433-B for businesses. Having it ready helps the hearing move.
"Being proactive in addressing the tax debt may prevent additional penalty and interest charges and eliminate the need for the IRS to take action to collect the balance."
Taxpayer Advocate Service, an independent organization within the IRS, in its guide to Letter 1058
How to request the hearing
- Find the date on the letter. The 30 days run from the date of the notice, so do not wait for a second letter.
- Complete Form 12153. Check the box for a levy notice and give a reason for the hearing. The form warns that a request without a reason will not be honored. If you want an installment agreement or another alternative, say so.
- Send it to the hearing address on the letter, not the payment address, with a copy of the notice. Use a mailing method that proves the date, and keep a copy.
- Keep talking to the IRS. If the balance is already paid, the IRS asks you to send proof. If you can pay in full, you can pay online.
If you owe less than $50,000
The IRS says you may be able to set up an installment agreement with its Online Payment Agreement tool, which it calls the fastest way to get one approved. You can still request a CDP hearing to protect your rights while you work out the plan.
Where this fits
A final notice often arrives alongside, or shortly after, other enforcement. If you also owe California, our guide on what to do when the FTB freezes your bank account covers the state side, which follows its own rules. If you would rather not face the deadline alone, see how we handle wage garnishments and bank levies, starting with a free, confidential review.
Frequently Asked Questions
Is Letter 1058 or LT11 really the last notice before a levy?
It is the final notice the law requires before most levies. The IRS must send it at least 30 days before the first levy, unless collection is in jeopardy or another narrow exception applies, such as a levy on a state tax refund.
What happens if I miss the 30-day deadline?
You can still ask for an equivalent hearing on Form 12153 within one year after the date of the notice. Appeals will hear the same issues, but levy is not prohibited while it is pending, the 10-year collection clock is not suspended, and you cannot take Appeals' decision to the Tax Court.
Can I argue I do not owe the tax at a CDP hearing?
Only in limited cases. The tax code allows it if you did not receive a notice of deficiency for that tax or did not otherwise have an opportunity to dispute it. Otherwise the hearing focuses on how the balance is collected.
Sources: IRS, Understanding your LT11 notice or Letter 1058; IRS, Collection Due Process FAQs; IRM 5.1.9, Collection Appeal Rights; IRM 8.22.7, Alternatives to Collection Action; 26 U.S.C. 6330; IRS, Levy; Taxpayer Advocate Service, Letter 1058; Taxpayer Advocate Service, Equivalent hearing; IRS, Form 12153.
