As mentioned on 106.7 KBPI’s Morning Show with Willie B, Advanced Tax Solutions’ Todd Whalen is a leading authority on the importance of correctly handling an IRS Form 1058, Final Notice of Intent to Levy and Notice of Your Right to a Hearing.
We know you get a lot of mail, and these days most of it is just junk. But as far as the IRS collection process goes, the IRS Form 1058 Final Notice of Intent to Levy is one of the most, if not THE MOST important letters to pay attention to. There are many letters with threats and boasts of what the IRS can do, but this is the real deal. We can’t stress this enough; when the IRS states, “Call immediately to prevent property loss,” they mean it.
The IRS Form 1058 allows you 30 days from the date on the form to file an appeal and offer an alternative solution to the levy action. After that 30 day grace period has passed, the IRS can levy your property, rights to property, vehicles, money, IRAs, and last but not least, garnish your wages. In other words, if you don’t respond to the IRS within 30 days, not only could you literally be left homeless, you would have no way to pay off your debts. Not only that, The IRS would then have the right to sell off any or all of your belongings.
It should be noted that the IRS does grant a 15 day waiting period after the 30 day deadline to mail your payment; if that is something you are able to do. Keep in mind that this is truly a period of waiting, not an additional 15 days for those of us who tend to procrastinate. If your envelope to the IRS is not postmarked within the 30 day period, you lose your right to a Collection Due Process appeal. The law is very clear that it is an irrevocable deadline if missed.
The good news is that you do not have to pay off your entire debt within 30 days. You can make an Installment Agreement with the IRS that allows you to pay off your debt in installments. Or, you can appeal by requesting a Collection Due Process. The bottom line is that you must do something. They are not kidding when they say this is the “FINAL Notice of Intent to Levy.”
If you ever see IRS Form 1058 in your mailbox – DO NOT IGNORE IT! And if you feel in over your head, remember Advanced Tax Solutions is always here to help.