IRS LT38 Notice
Writen by Sergio Melendez | Last updated 12/01/2024
The mailing of the The IRS LT38 Notice explains collections is resuming to pre-pandemic operational levels.
This means that the IRS is now in full operations with back tax collections. What you need to do is take action & be proactive in resolving your IRS tax debt before collection action begins.
TLDR | Key Takeaways:
IRS LT38 is a collection letter sent by the IRS
The notice includes information the total tax debt you owe, including Interest & Penalties
Payment Instructions to pay your IRS Debt
The LT38 Notice includes a breakdown of year-by-year balances
You may qualify for Tax Relief or Settlement if you are unable to pay your tax debt
The IRS LT38 Notice is the telling us that the IRS collections is resuming operations to pre-pandemic levels.
The IRS LT38 notice is a new notice released in January 2024. The LT38 letter is mailed from the IRS ACS collections department. Although the LT38 Notice is not as threatening as the IRS CP504 or LT11 Notice, it is still advising you need to take action to resolve your IRS tax debt.
The IRS LT38 has some differences from previous collection letters. The LT38 will list all of the IRS tax debt years. Normally an IRS collections letter will address a specific year, not mentioning other tax years with balances.
The IRS LT38 Notice notice contains the total balance owed for the taxes on the first page, calculated with a payoff amount to a specific date.
There are payment instructions on paying your balance off with the IRS, with the QR code to the IRS payment page: irs.gov/payments
What does the IRS LT38 have?
IRS LT38 Notice
The IRS has the total tax debt & payoff on the very first page. In the following pages the additional information is provided on the LT38:
Each Year with a Balance
The Tax, Interest & Penalties per year
How to Pay off your Debt
Limited information on Tax Relief Programs
Why did the IRS send me the LT38 Notice?
The had suspended some operations, including mailing out certain notices because of the hardships caused by the COVID 19 pandemic. Now the IRS is resuming its normal operations, including Tax Collections. Since you have a tax debt, the IRS is giving you the warning that you must take action to resolve your IRS Tax Debt.
Can I Settle the tax debt on the IRS LT38?
A tax settlement may be possible. Prior to requesting any tax relief program you must in tax filing compliance, meaning you have to be caught up with your tax filings.
If you have any missing tax returns, the IRS may not even consider your request.
I have previously written about the top 10 Ways to eliminate your tax problems. You can find the details by clicking here.
Here is the 10 list of Tax Relief Programs:
IRS Offer In Compromise Program
IRS Hardship Payment Plan
IRS Innocent Spouse Relief
IRS SFR Tax Reconsideration
ID Theft Resolution
IRS Audit Reconsideration
IRS Strike Back Method
IRS Special Life Circumstances
The Complete Strategy Free Tax Relief e-Course!
IRS LT38 NOTICE FAQs
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You received a LT38 Notice because you have an outstanding tax debt with the IRS that you have not paid or resolved. The IRS sends the LT38 to notify you that collections is resuming to pre-pandemic levels. The IRS collections has suspended some operations since the COVID 19 pandemic
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f you have received an IRS LT38 Notice, there are several options available for you to resolve your tax debt. The first option is to pay your debt in full, including any penalties and interest accrued. You can also set up an installment agreement to pay your debt over a specified period. Another option is to apply for an offer in compromise, which allows you to settle your debt for less than the full amount owed. It would help if you also considered speaking to an Orange County tax attorney to help you determine the best course of action based on your financial circumstances.
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The IRS LT38 notice will include the due date for payment, which is typically within 30 days of the date on the LT38 Notice
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If you don't pay the full amount owed by the due date, the IRS may take further action to collect the debt, including Levying or garnishing your income sources & placing a lien on your property or seizing your assets. In addition, the IRS may issue a passport revocation.
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If you believe the amount of IRS taxes are incorrect, you have the right to dispute the amount with the IRS.
There are doubt as to liability as to programs to dispute the amounts such as an amended tax return, Identity Theft Claim, or a doubt as to liability program. The burden of proof is up to you to show the IRS.
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If you can't pay the full amount on the LT38, review your original tax filings to see if an amended tax return is possible or if one of the following tax relief programs may apply:
1) Temporary time to pay ( & Penalty Forgiveness)
2) Payment Plans ( & Penalty Forgiveness)
3) Penalty Forgiveness
4) Offer In Compromise
5) Non-Collectible Status - Financial Hardship Status
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The IRS LT38 is a warning from the IRS for your tax debt.
The LT38 Notice is advising your back taxns need to be addressed & resolved.
The collections department of the IRS needs to send out certain letters to you as a legal warning. These legal warnings are mandatory and required before the IRS is able to take any action against you.
The best way to deal with this problem is head-on, and for you to take action before the IRS takes action
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There are different grounds to appeal IRS actions. When the IRS issues an LT38 notice, there is no direct appeal of the LT38 notice.
However, you have several other options to settle your tax problems.
Take action upon receiving the IRS LT38 Notice today!
The IRS LT38 is a simplified letter, notifying that the IRS collections department is operational to pre-pandemic levels and that you have an outstanding IRS tax debt.
If you can afford to pay the balance, then it is highly recommended to do so. However, if there is an issue with paying because of financial hardship or there is a doubt as to liability, then evaluate the appropriate tax relief program.
The key to resolving your tax debt is to act promptly before the IRS does
