IRS LTR1058 Exam Changes Explained
An LTR1058 letter means the IRS has completed an examination of your return and is proposing changes. The letter details what the IRS found, how your tax liability has been recalculated, and what you owe as a result. You have the right to agree, disagree, or request an appeal.
This guide is general educational information, not professional advice. If the document involves a serious deadline, lawsuit, tax issue, health decision, or major financial consequence, get qualified help.
What this document usually means
LTR1058 is a report of examination changes. The IRS audited specific items on your tax return and determined that adjustments are needed. The letter shows the original amounts, the corrected amounts, and the resulting change to your tax liability. It also includes any penalties and interest.
This is a proposed change, not a final assessment. You have the right to review the findings and respond before the IRS makes the changes permanent.
The first things to check
Review each adjustment listed in the report. The IRS will specify which income, deductions, or credits were changed and why. Compare these against your records and the documents you provided during the examination.
Check whether the IRS considered all the information you submitted. Sometimes adjustments are made because documentation was lost, misunderstood, or not received by the examiner.
Note the deadline for responding. You typically have 30 days to agree, partially agree, or request a meeting with the examiner's supervisor or an Appeals conference.
Common reasons this letter feels confusing
The examination report can be lengthy and technical, especially if multiple items were adjusted. The IRS uses specific tax code references and form line numbers that are not easy to follow without your return in hand.
People are also confused about the difference between agreeing with the examination and paying immediately. Agreeing to the changes locks in the adjustments, and you will receive a bill. You may still have options for payment plans.
What to do before you pay or respond
If you agree with all the changes, sign the agreement form and return it. The IRS will assess the additional tax and send a bill.
If you disagree, you can request a conference with the examiner's manager or submit a formal protest to the IRS Office of Appeals. The protest should explain which changes you disagree with and include supporting documentation.
If you do not respond by the deadline, the IRS will issue a Notice of Deficiency, which is your last opportunity to dispute the changes in Tax Court before the assessment becomes final.
How Letter Lens can help
Upload your LTR1058 to Letter Lens, and it will break down each examination change in plain language. It will highlight the new balance, the deadline, and your options for agreeing or disputing.
Letter Lens is not a substitute for a tax professional, especially during an examination. But it helps you understand the findings clearly before deciding how to respond.
Key Terms Decoded
Have an IRS LTR1058 letter you need decoded?
Upload it now and get a plain-English explanation in seconds.
Decode It Free