The IRS uses Letter 1058 as a Notice of Intent to Levy to inform you they intend to take your property and assets. It is very similar in effect as other Notices CP77, CP90 & CP504. The IRS can seize practically anything you own after 30 days.
The IRS mostly seizes wages and bank accounts because they are easy. They may levy against life insurance or a CD. They can levy against your social security, 401(k) or pension but they often do not. A CP91 will be sent if they intend to take 15% of your social security.
Your response to the IRS will have to be a quick determination of the basis for the tax, gathering of financial records and probably entering an installment agreement to avoid levies until a method for dealing with this problem can be devised.
Usually, you'll have to complete Form 433-A or Form 433F to disclose your income & assets. These require a lot of work & a lot of evidence. But, only you can prepare the forms because you have access to all of the information. Our TaxHelp Webinars teach you the Tax Attorney tricks & traps of completing these forms!
In addition, it is important for the attorney to compare your records with the IRS transcripts, review the available strategies and devise an Action Plan specifically for you to deal with the IRS for the least cost - all before the IRS seizes anything! Please follow the Prep Steps for more information, forms & instructions!