IRS Letter – Certified Mail

You just received a certified letter from the IRS and you’ve opened it and read it and you’re wondering what the letter is all about and what you need to do. First, read and understand the letter and second, take action on the letter! Letters from the IRS have codes identifying what the letter is about. Usually certified mail from the IRS is either a CP 504 or an L1058. These letters are described below.

CP 504 – Initial Notice of Intent to Levy
This is the first collection oriented letter you will receive certified from the IRS. It is an initial notice of intent to levy your wages and/or bank accounts. This is the first warning shot the IRS is firing at the taxpayer.

L1058 – Final Notice of Intent to Levy
This letter is what it says…a FINAL NOTICE of intent to levy. The taxpayer has 30 days to respond to this letter. If no response if given the IRS can levy (garnish) your wages and/or bank accounts. This is serious!

It is best to be proactive if you receive either of these letters. A professional tax resolution firm can be very helpful with situations like these. The first step a tax professional will take will be to file a Power of Attorney on behalf of the taxpayer and request a stay on any collection activity the IRS may have in the works. The bottom line is this…get help immediately! Call a tax professional!