Letter 1058-D is a post-levy Collection Due Process notice. It is used when the IRS levies first and provides CDP notice afterward. IRC Section 6330(f) allows that order in a handful of situations, including a levy on a state tax refund and a disqualified employment tax levy. Jeopardy levies usually come with Letter 2439 instead, which carries its own appeal rights. Federal contractor levies use Letter 1058-F. When Letter 1058-D is used, it fills the CDP role after the fact.
You Still Get 30 Days
Even though the levy already happened, you still have 30 days from the date of Letter 1058-D to file Form 12153 and request a CDP hearing. The CDP hearing can address whether the jeopardy determination was proper, whether a collection alternative should replace the levy going forward, and whether innocent spouse relief or other defenses apply.
Disqualified Employment Tax Levies
A disqualified employment tax levy is a levy for employment taxes where the business already had a CDP hearing on earlier employment tax periods within the prior two years. The IRS can levy first and offer the hearing afterward. Businesses that keep pyramiding payroll taxes see this one.
State Refund Levies
When the IRS levies a state tax refund through the State Income Tax Levy Program, the notice process is post-levy. The state refund is intercepted, applied to the federal balance, and Letter 1058-D follows. CDP rights still exist, but the proceeds are generally not returned pending the hearing.
If you received a Letter 1058-D after a levy already happened, call us at (813) 229-7100. The post-levy posture limits recovery of what was taken, but the hearing can stop future levies and set up a resolution.