Semper Tax Relief

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IRS LT38 Notice

Sergio Melendez, JD EA

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.

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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:

  1. Each Year with a Balance

  2. The Tax, Interest & Penalties per year

  3. How to Pay off your Debt

  4. 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:

  1. IRS Offer In Compromise Program

  2. IRS Non-Collectible Program

  3. IRS Hardship Payment Plan

  4. IRS Innocent Spouse Relief

  5. IRS SFR Tax Reconsideration

  6. ID Theft Resolution

  7. IRS Audit Reconsideration

  8. IRS Strike Back Method

  9. IRS Special Life Circumstances

  10. The Complete Strategy Free Tax Relief e-Course!

IRS LT38 NOTICE FAQs

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