IRS Letter LT11 or Letter 1058 is a final notice informing taxpayers that the IRS intends to levy their Social Security benefits due to unpaid taxes, which may include liabilities under the Affordable Care Act (ACA). This notice is a critical communication as it represents one of the final steps before the IRS takes enforcement action to collect debts.
Understanding Letter LT11 and Letter 1058
Both letters serve the same function, which is to notify taxpayers of the IRS’s intent to levy assets, specifically Social Security benefits, unless immediate action is taken. Here’s what you need to know:
- These letters will list the amount owed, including taxes, penalties, and interest.
- They provide a deadline by which you must resolve the debt to avoid the levy.
- They outline your right to appeal the decision before the levy is executed.
How to Respond to These Notices
Responding appropriately to Letter LT11 or 1058 is crucial:
- Review the notice to understand the specifics of the debt and the proposed levy.
- Contact the IRS immediately to discuss payment options or to set up a payment plan if you cannot pay the full amount.
- If you disagree with the notice, consider filing for a Collection Due Process hearing by the deadline provided in the notice.
Preventing Future Levies
To prevent future levies and ensure compliance with tax obligations:
- Stay up to date with all tax filings and payments, including those related to the ACA.
- Regularly review your financial obligations to the IRS and make adjustments to your budget to accommodate these payments.
- Consult with a tax professional to ensure that you are taking all possible steps to minimize your tax liability legally and effectively.
Additional Resources
For further assistance with understanding and responding to IRS levies, employers and individuals can consult the IRS View Your Tax Account page. This page provides tools and resources to help you manage your account and stay compliant with your tax responsibilities.
