IRS Certified Mail – Your Last Chance

In my previous blog I compared certified mail from the IRS to a rattlesnake getting ready to bite. The IRS is getting ready to “bite” you when they send you a CP 504 letter. If you receive another piece of certified mail with “L1058” written on it then you know this is your last chance. If you do not respond to this letter you will get bit! Lions, snakes, dogs or anything with fangs are usually considered dangerous because of the damage a bite can do. The IRS is no different.

Their “bite” will not draw blood nor force you to seek immediate medical attention, but it will cause you equivalent pain financially. If this L1058 letter is not addressed immediately and effectively the financial effects can be dramatic. The IRS can attack all of the taxpayer’s sources of income, bank accounts as well as file a notice of federal tax lien against the taxpayer’s social security number thus laying claim to all property the taxpayer owns currently and any property the taxpayer may own in the future, not to mention the devastating effect the tax lien will have on the taxpayer’s credit score and subsequent ability to borrow money.

After income has been reduced and the ability borrow cut off this usually produces excruciating financial pain and can very difficult to correct. The best bet is to address the situation quickly before it becomes a problem. Lions, snakes, dogs or anything with fangs are best kept at a safe distance and preferably in a cage or somewhere else that would prevent a bite. Responding quickly to an L1058 letter from the IRS is the best way to avoid getting bitten by the razor sharp fangs of the IRS. Certified mail of this nature is best handled by a tax professional. Protect yourself! If you have received a letter like this call someone now and do not delay!