Once you have received the IRS notices CP 501/503/504 as discussed in my previous blog, the next, and Final IRS notice or letter you will receive if you have not done anything is the IRS Letter 11 or Letter 1058. The final IRS notice of intent to levy on letter 11 or letter 1058 will come certified mail, and should not go ignored.
We highly recommend that you contact a tax professional if you receive an IRS letter 11 or 1058. If the final notice of intent to levy does not get responded to within 30 days on the date of the notice, the IRS can start coming after you bank accounts, or wages.
The IRS final notice of intent to levy letter 11 or 1058 will come with you rights for a “Collection Due Process Hearing” or CDP. In order to request the hearing, the IRS Form 12153 (which comes with your letter 11 or 1058) will need to be filed within 30 days on the date of the notice. By filing this form 12153 CDP, following will happen:
- Collection actions will be suspended
- Your case will be forwarded to Appeals
- Gives you additional time to get any missing tax returns filed, in order to work a payment plan or settlement with the IRS.
- If nothing can be worked out with IRS appeals, you will have the right to go to tax court.
If by chance you miss this 30-day window to request a collection due process hearing, you still have the option for an “Equivalent Hearing”, which can still get your case forwarded to Appeals. You will have up to one year form the date on the notice to request the Equivalent Hearing. To request this, you will need to check the box in item 7 of page 2 of the IRS Form 12153. The following are the downsides of the Equivalent Hearing:
- Collection actions will continue
- Your rights to go to tax court have been eliminated. Anything IRS appeals decides is final.
If you receive the IRS Letter 11 or 1058 in Newport Beach, California and would like some help in dealing with the IRS, do not hesitate to reach out and contact our office for some help.
Anthony Fontana EA
4630 Campus Dr #203
Newport Beach, CA 92660