Halloween is supposed to be scary. But for a person who owes back taxes, the most frightening thing in the mailbox may not be a Halloween decoration. It may be an IRS Final Notice of Intent to Levy.

If you received Letter 1058 or LT11, you may worry that the IRS will take your paycheck or money from your bank. You may still have options. At Tomes Law Firm, our tax resolution team helps New Jersey individuals and small business owners understand IRS notices and resolve collection problems. This article explains what the letter means and why acting early matters.

What Is IRS Letter 1058 or LT11?

Letter 1058 and LT11 are final notices of intent to levy and notices of your right to a hearing. They mean the IRS intends to collect overdue taxes by levying property or income unless the problem is addressed. LT11 commonly comes from the IRS Automated Collection System; Letter 1058 commonly comes from a Revenue Officer. Both are serious.

The letters generally give you 30 days from the date of the notice to request a Collection Due Process (CDP) hearing. Check the actual deadline on your letter. Do not calculate it from the day you happened to open your mail.

What Can the IRS Take?

Depending on the circumstances and applicable protections, the IRS may levy bank accounts, garnish wages, take some retirement funds or federal payments, or levy business property. Seizing and selling a home requires additional procedures and protections; it is not the routine result of receiving this letter.

The IRS Does Not Forget Just Because You Have Not Heard From Them

Suppose you receive an LT11 in October 2026. Nothing happens right away. Another year passes. You think the IRS has forgotten you. Then, in 2028, you find out that your bank account has been levied.

Generally, the IRS does not have to send another final levy notice for the same tax liability after it has properly provided one. There are exceptions and other legal limits, but silence does not mean the threat has disappeared. An old levy notice is not necessarily a harmless one.

I Have Seen What Happens When People Ignore These Letters

In my practice, I have seen it more times than I can count. A taxpayer receives a final notice, puts it aside because they cannot afford to pay, and hears nothing for a while. Then a wage levy starts or a bank account is frozen. By the time the person calls my office, the tax problem has become a financial emergency.

We have helped clients get wage levies released and arrange payments they can afford. But I have also had to explain that stopping future collection does not mean the IRS must return money it has already collected. Many of these emergencies could have been avoided if the taxpayer had addressed the notice when it arrived.

Why the 30-Day Deadline Matters

A timely CDP hearing request, usually made on IRS Form 12153, lets you ask the IRS Independent Office of Appeals to review the proposed collection action. A timely request generally prevents the proposed levy for the covered tax periods while the hearing and any judicial review are pending, subject to exceptions. It can also preserve the right to seek Tax Court review.

A hearing may be a chance to discuss a payment agreement, hardship status, or another collection alternative. In limited circumstances, you may also challenge the underlying tax debt.

Is Filing a CDP Appeal Always the Best Choice?

Not necessarily. A timely CDP request can protect important rights, but it also generally suspends the IRS collection statute of limitations while the proceeding is pending. That can give the IRS more time to collect. Sometimes a prompt collection arrangement is the better solution; other times an appeal is essential. The facts and the collection deadline should be reviewed before deciding.

What If You Cannot Pay the IRS?

Not being able to pay the full balance does not mean you have no choice. Depending on your finances and tax compliance, options may include an installment agreement, a partial-payment installment agreement, Currently Not Collectible status, or an Offer in Compromise. Not everyone qualifies for every program, and hardship status does not erase the tax debt.

Why It Is Better to Act Before a Levy

When a client calls while the notice deadline is still open, we can focus on understanding the debt, reviewing finances, preserving rights, and finding a collection solution. When someone calls after a levy, we may have two problems: the tax debt and an immediate shortage of money for rent, food, payroll, or other bills. Resolving a problem before a levy is usually less disruptive and may be less costly.

Bank Levy Versus Wage Levy: What Is the Difference?

A bank levy usually reaches money in the account when the levy arrives. Banks generally hold the funds for 21 days before sending them to the IRS. That time can matter when asking the IRS to release a levy, but a release is not guaranteed.

A wage levy generally continues against future paychecks until the IRS releases it or another ending condition applies. Either kind of levy can create a serious financial crisis.

I Already Missed the 30 Days. Is It Too Late?

Not necessarily. You may still be able to request an Equivalent Hearing within the applicable one-year period, or pursue a collection alternative or another administrative appeal. But an Equivalent Hearing generally does not provide the same automatic protection against levy or the same Tax Court review rights as a timely CDP hearing. The sooner you act, the more options you may have.

What Should You Do When the Letter Arrives?

Read the notice and its deadline. Identify the tax periods involved. Keep the entire letter and any envelopes or related notices. Gather your tax records, proof of payments, and basic financial information. If you need help, speak with a qualified tax professional before the deadline rather than assuming the IRS will send another warning.

Frequently Asked Questions

Is an LT11 the same as a CP504? No. A CP504 is an important collection warning, but it generally does not give the same broad pre-levy CDP rights as an LT11 or Letter 1058. Certain levies, including state-tax-refund levies, follow different rules.

Can the IRS levy me years after sending an LT11? Often yes, for the same liability, if the IRS met the required notice rules and collection is not otherwise barred.

Can I get levied money back? Sometimes a levy may be released or proceeds returned under applicable rules. But stopping the levy does not automatically undo money already collected.

Do I have to pay everything within 30 days? Not necessarily. The critical issue is protecting your rights and addressing the debt before enforcement proceeds.

Do Not Let the IRS Letter Become Your Worst Nightmare

Halloween comes once a year. IRS collection problems can last much longer. If you received Letter 1058 or LT11, do not assume that nothing will happen just because nothing has happened yet. Tomes Law Firm helps New Jersey taxpayers understand their rights and work toward solutions before a levy turns into an emergency.

The scariest IRS letter isn’t necessarily the one demanding the most money. It’s the one giving you your last chance to act before the IRS takes it. Call the tax resolution lawyers and accountants at Tomes Law Firm today at 732-333-0681 or 833-4IRS-TAX,

IRS Resources

Understanding LT11 or Letter 1058 — https://www.irs.gov/individuals/understanding-your-lt11-notice-or-letter-1058

Collection Due Process FAQs — https://www.irs.gov/appeals/collection-due-process-cdp-faqs

IRS Internal Revenue Manual, Levy and Sale — https://www.irs.gov/irm/part5/irm_05-017-003