VALID › Notice Library › LT40 notice
In the IRS’s own words · not reviewed by VALID
LT40 notice explained, in the IRS’s own words
We’re trying to collect unpaid taxes and unfiled returns from you. To do so, we intend to contact others to get or verify your contact information.
Read the full LT40 page on irs.gov ↗
What this notice is about
We’re trying to collect unpaid taxes and unfiled returns from you. To do so, we intend to contact others to get or verify your contact information.
What you need to do
- Read your notice carefully: Following the instructions on your notice. If you have any questions call us to review your account at the number listed in your notice.
- Filing missing tax returns: See “Filing My Missing Returns” for more information on how to file your return below.
- Pay your unpaid balance: You can quickly and easily pay your balance online, See Your Tax Account.
- If you can’t pay the full amount due: and you’re current on your filing obligations. See the frequently asked questions below.
What type of information will you provide to these third parties?
We’ll generally need to tell them limited information, such as your name. The law prevents us from disclosing any more information than is necessary to obtain or verify the information we need.
How long will you contact these third parties?
We may continue for a period of one year from the date of the notice.
How will I know who you contact?
We’ll send you a copy of the contact list once a year. If you don’t receive a list, it means we didn’t contact anyone who we’re required to advise you of.
If you can't pay in full now
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 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 LT40 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 are 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 does not stop penalties and interest from being charged and it does not 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.
How do I file my missing return?
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 information about how to prepare 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 in your notice.
Based on my income I don’t think 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 are, please call the toll-free number in 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 delinquent return within three years of the original return due date, or within two years of the date you full paid the tax, if applicable.
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.