If you have received IRS letter 1058 that relates to form 2290, then there are sure actions you would need to take. Essentially, this is the Final Notice Before Levy issued by the IRS, which means you would have to deal with levies if you do not take the correct actions. This blog will focus on the IRS letter 1058 for form 2290 as well as what your response should look like.

What Is IRS letter 1058?

IRS letter 1058, also known as LT 1058, is the notification sent after you have passed your deadline for paying taxes. The taxpayer gets this notice once an unpaid tax remains in their account for a specified amount of time. A taxpayer’s bank account, wages, and other properties can be levied, which serve as a warning for this form letter.

In the case of trucking businesses, this letter is usually sent in relation to unpaid Form 2290 Heavy Highway Vehicle Use Tax (HVUT). Not paying taxes on schedule could result in the IRS taking collection actions such as issuing levies.

IRS Letter 1058: What’s It About?

You may have received this specific notice for different reasons such as:

• You Have Not Paid Your Form 2290 Taxes: If your HVUT for the taxable period is outstanding, the IRS can begin collection procedures.
• You Did Not Respond to Previous Notices: Before addressing any collections, the IRS sends a Letter 1058 out and several notices preceding it.
• Accumulation of Penalties and Interest: Unpaid taxes typically accumulate interest and other charges which further adds to the original liability.
• Not Meeting Payment Deadlines: The IRS had estimations of how much time was appropriate for making payments, which if not followed led to strict actions taken by the IRS.

Instructions For Responding to an IRS IRS

For preventing seizures to your assets, IRS gives you a limited time frame to address these issues, so it’s better to act fast. Here are a few things you can do:

• Understand the Repercussions of Not Responding Check the notice line by line, make sure the value owed, period of tax and mandated timeline to respond all match your documents. If there’s an inconsistency, pursue it.
• Clear Outstanding Payments Immediately (If Possible) Pay the amount due at the earliest in order for no further actions to take place from IRS.
• Set Up a Payment Plan If you are unable to pay the full amount owed, an Installment Agreement can be set with the IRS for a payment plan that lets you pay in smaller amounts over time.
• Complete and Submit an Offer in Compromise (OIC) For other cases, you may qualify an Offer in Compromise due to having serious financial issues which permits you to settle and reduce your tax debt.
• Request for a Collection Due Process (CDP) Hearing A person is allowed to request a CDP hearing for 30 days after receiving the notice to allow someone to contest the levy and other options to pay the debt.
• Speak to a Tax Professional If you do not know what to do, getting help from a tax professional or attorney will be useful.

Consequences of Ignoring IRS Letter 1058

Disregarding this notice can result in serious consequences like:

• IRS Levy on Bank Accounts and Assets: The IRS has the authority to limit and take the money in your bank accounts.
• Garnishment of Wages: A fraction of your salary can be taken until the debt is settled.
• Business Assets Seizure: The Internal Revenue Service may take county actions to businesses with valuable possessions like trucking equipments.
• Credit Damage: Your financial state and creditworthiness can be damaged due to tax liens or levies.

  How to Prevent Future Problems with IRS

To evade getting IRS Letter 1058 in the future, you should:

• Make Sure to Submit Form 2290 on Time: Make sure you adhere to the IRS payment deadlines in relation to the HVUT.
• Create Carrot Set P Automatic Reminders: Get reminders for when tax payments deadline approaches.
• Establish Correct Record Keeping: Ensure you easily accessible records of your finances so you may not face miscalculations or disputes.
• Annual Consultation with Tax Expert: Meeting regularly with your taxation professional means you remain compliant and avoid being penalized.

If you received an IRS Letter 1058 because of unpaid Form 2290 taxes, it is something that needs to be solved as quickly as possible. The good thing is, it doesn’t have to come to levies and asset seizures. You can either fully pay, create a payment plan in advance, or request a hearing. It is always better to respond before the IRS comes up with their collection actions.

Always consult an experienced tax professional who can walk you through your Form 2290 tax complications step by step.

Note: For more information, visit IRS website