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In the IRS’s own words · not reviewed by VALID
LT38 notice explained, in the IRS’s own words
If you received a LT38 notice, it's letting you know that during the pandemic some collection notices were suspended. However, we're resuming normal operations and providing you with an update on your outstanding balance to help you stay informed and offer you self-service options to resolve your account. This isn't an audit.
Read the full LT38 page on irs.gov ↗
What this notice is about
If you received a LT38 notice, it's letting you know that during the pandemic some collection notices were suspended. However, we're resuming normal operations and providing you with an update on your outstanding balance to help you stay informed and offer you self-service options to resolve your account. This isn't an audit.
It's always in your best interest to pay in full as soon as you can to minimize interest and penalties. The IRS has information and options available to help you meet and understand your tax responsibilities.
What you need to do
- Read your notice carefully: Follow the instructions on your notice.
- File missing tax returns (if any): If your notice indicates you have missing tax returns, file the missing returns as soon as possible. See frequently asked questions below for more information on how to file your return.
- Pay your unpaid balance: Interest and applicable penalties will stop accruing as soon as you pay your balance in full. You can quickly and easily pay your balance online. See your Online Account to learn how to determine your balance.
- If you can't pay the balance due: and you're current with your filing obligations: See the frequently asked questions below.
What if I can't pay the balance in full?
Pay what you can now; any payments will reduce the amount of interest and applicable penalties added to the remaining balance in the future.
You can enter into a payment plan to pay any remaining balance on your account over time.
If you can't apply online, call us at the toll-free number on your notice, or mail in a payment plan PDF request.
If you've already submitted a payment or set up a payment plan
Payments on your balance can take up to 21 days to post on your account. If you paid your balance in full within the last 21 days, please disregard the LT38 you received.
If you already have an approved payment plan, then continue making payments per that agreement. If you've applied for a payment plan, but haven't yet been approved, pay as much of your balance as you can now to minimize additional interest and applicable penalties added to your balance.
If you're experiencing a financial hardship
In some circumstances, we may determine that you can't pay any of your tax debt. In these cases, we can report your account as currently not collectible to temporarily delay collection until your financial condition improves. Putting your account in currently not collectible status doesn't stop penalties and interest from being charged and it doesn't mean the debt goes away - it means the IRS has determined you can't afford to pay the debt at this time.
If you believe collection should temporarily be delayed on your account, please contact us and be ready to discuss your income, expenses, and owned assets. We may request proof of your financial hardship.
Under certain circumstances, an offer in compromise allows you to settle your tax debt for less than the full amount you owe. This may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship.
Penalties and interest
In general, we charge penalties on your account when you don't pay your tax in full by the return due date (usually April 15), or if you've not made sufficient estimated tax payments (if required). For more information on penalties, see Penalties.
Due to the temporary suspension on issuing some collection notices, the Internal Revenue Service automatically granted penalty relief of certain failure to pay penalties for individuals and businesses on tax years 2020 and 2021. If you're due a refund based on the automatic penalty relief, you should have received an IRS notice (CP21 or CP210) explaining the adjustment. Please disregard the language in the penalty relief notice stating the adjustment was based on information you provided to us; the adjustment was based on the information above.
Refer to relief from penalties and follow the guidance outlined in the How to request penalty relief section.
Interest on the total amount you owe generally begins being charged daily from the return due date. For more information on interest, see Interest.
How do I file my missing returns?
Read your notice carefully to identify which tax returns are missing from IRS records. You may need to file returns from multiple tax years.
You can find answers to many of your questions and get help preparing your return at Filing your taxes.
What if I already filed a return reported as missing?
If it's been over 10 weeks since you sent us the return, send a signed copy of it to us again. If you find that one or more of your returns were incorrectly reported as missing, please contact us using the toll-free phone number on your notice.
Based on my income do I need to file?
Use the Do I need to file a tax return? tool to verify that you don't meet the filing requirements for the tax years involved. If the tool indicates you're not required to file a return, but the notice indicates you're, please call the toll-free number on your notice.
What if I'm due a refund?
Based on your income and other factors, you may still be required to file even if you're due a refund. Also, to receive the refund, you must file a tax return within 3 years of the original return due date, or within 2 years of the date you full paid the tax, if applicable.
Victim of fraud or identity theft
If you're a victim of fraud or identity theft, see Taxpayer guide to identity theft.
Innocent spouse
In certain cases, a spouse will be relieved of the tax, interest, and penalties on a joint tax return. Learn more about innocent spouses.
Other circumstances
In most instances, information about your type of circumstance is available online. Use the search box in the top right of this web page to find more information. If you can't find the answers online, please call the toll-free phone number on your notice.
Questions about this notice?
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What to do next
- Write down the date on the letter today.
- Look the number up on irs.gov yourself. Don’t trust a link or phone number from anyone else.
- If it says you owe money or proposes changes to your return, take it to a licensed CPA, EA or tax attorney before that date.
Not advice. Not a filing. Verify with a licensed professional. Rules change by year and facts.