The Internal Revenue Service (IRS) has announced the resumption of mailing balance due notices to taxpayers, a process that was largely suspended during the pandemic. The first notice being sent is the LT38, a reminder letter highlighting a taxpayer’s outstanding tax liability and providing several options to address the debt.
Who Will Receive These Notices?
For individuals, the IRS is targeting taxpayers with tax debt originating before the 2022 tax year. For businesses, tax-exempt organizations, trusts, and estates, the focus is on tax debt originating before the 2023 tax year.
Penalty Relief and Updated Balances
The IRS has recently granted penalty relief for certain failure-to-pay penalties for tax years 2020 and 2021. For eligible taxpayers, this relief will be reflected in the balance due shown on the LT38 notice.
Understanding Your Notice
The LT38 notice will indicate the outstanding balance(s) due and the corresponding tax years. It will also outline several options for addressing the debt. If you cannot pay the full amount immediately, the IRS suggests some common solutions:
- Establishing a Payment Plan: Setting up an installment agreement to pay off the debt over time.
- Submitting an Offer in Compromise: Negotiating a reduced amount to settle the debt.
- Requesting a Temporary Delay in Collection: If you are experiencing financial hardship, you can request a delay in collection activities.
Utilizing QR Codes
The notice includes QR codes that direct taxpayers to specific sections of the IRS website. These links can be used to make payments, access account records, or establish a payment plan.
Consequences of Ignoring the Notice
Ignoring the LT38 notice can lead to more aggressive IRS collection measures. This can include tax liens, levies, garnishments, and other enforcement actions. It is crucial to address the notice promptly to avoid these severe consequences.
Need Help? Contact Us
If you have questions about your IRS notice or need assistance in addressing a balance due, our team of certified tax professionals, including CPAs and Juris Doctors, is here to help. Contact us today at (202) 455-6010 or schedule a confidential consultation at info@strategictaxplanning.net.
Taking proactive steps now can help you manage your tax liabilities and avoid more serious enforcement actions by the IRS. Don’t delay—reach out to us for expert guidance and support.
