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Decoding IRS Letter 1058: Your Guide to Understanding Tax Notices

May 12, 2023

Tax season can be daunting for many individuals, especially when unexpected letters from the IRS appear in your mailbox. One such notice is the IRS Letter 1058. But fear not! In this blog post, we will unravel the mystery behind this letter and provide you with a clear understanding of its purpose and what actions you should take. So, let's dive in and decode the IRS Letter 1058!

What is IRS Letter 1058?

IRS Letter 1058 is an official correspondence sent by the Internal Revenue Service (IRS) to notify taxpayers about a potential discrepancy or issue regarding their tax return. It is an important communication tool the IRS uses to inform individuals about a proposed change to their tax liability or to request additional information or documentation.

Understanding the Purpose:

The purpose of IRS Letter 1058 is to bring attention to specific issues that need clarification or resolution. The IRS may identify inconsistencies, errors, or missing information in your tax return. This notice is a starting point for resolving discrepancies.

Key Elements of IRS Letter 1058:

To effectively comprehend the letter, it's essential to familiarize yourself with its key components:

1. Header Information: The letter will contain the official IRS logo, contact details, and a unique identifying number.
2. Explanation of Proposed Changes: The letter will clearly state the IRS's proposed adjustments or corrections to your tax return. It will explain why they believe changes are necessary and provide supporting details.
3. Response Deadline: The letter will include a deadline by which you must respond. It is crucial to take note of this date and ensure you address the issue within the given timeframe.
4. Additional Documentation: If the IRS requires further information or documentation, the letter will specify what is needed and how to provide it. It's essential to gather and submit the requested documents promptly.
5. Appeal Rights: If you disagree with the IRS's findings, the letter will inform you of your rights to appeal the proposed changes. It will provide instructions on how to file an appeal and the relevant timeframe for doing so.

What to Do if You Receive IRS Letter 1058:

Receiving an IRS Letter 1058 might trigger anxiety, but staying calm and taking prompt action is crucial. Here's a step-by-step guide on how to handle this situation:

1. Read the Letter Thoroughly: Take the time to carefully read and understand the letter's contents. Pay close attention to the proposed changes and the response deadline.
2. Gather Required Information: If additional documentation is requested, collect all relevant records, receipts, or forms necessary to address the IRS's concerns.
3. Consult a Tax Professional: If you feel overwhelmed or need help with how to proceed, seeking guidance from a tax professional at the Lamarre Law Group P.A. can provide valuable assistance. We can help you understand the letter, review your tax situation, and provide guidance on the best course of action.
4. Respond Promptly: Time is of the essence. Therefore, ensure you respond to the IRS within the given timeframe. Ignoring the letter or missing the deadline may lead to further complications, such as penalties or additional interest.
5. Consider Your Appeal Options: If you disagree with the proposed changes, you have the right to appeal. Follow the instructions provided in the letter to initiate the appeals process. It's essential to do this within the specified timeframe.

IRS Letter 1058 may initially cause concern, but understanding its purpose and taking appropriate action is crucial in resolving any discrepancies with the IRS. By reading the letter carefully, gathering the necessary information, and responding promptly, you can confidently navigate the process.