The LT38 is a reminder notice about an overdue tax balance. The IRS prominently used the LT38 when it resumed sending automated collection reminders after a pause, alerting taxpayers that previously paused balances were active again. If you receive one, it means the IRS has an unpaid balance on file and is restarting its collection process.
What this notice means
An LT38 restates that you owe a balance and signals that the IRS’s collection machinery is moving again. It is a reminder, not a final notice — you have not yet received a notice of intent to levy. That makes it an ideal moment to resolve the debt before it escalates toward enforcement.
Why you received it
- You have an unpaid balance from a prior tax year that was never resolved.
- The IRS resumed automated collection reminders after a period without notices.
- No payment plan or other resolution is currently in place.
Deadlines and what happens if you ignore it
| If ignored | What follows |
|---|---|
| Continued reminders | CP501 / CP503-style notices |
| Intent to levy | CP504 — Notice of Intent to Levy |
| Final notice | LT11 / LT1058 — Final Notice of Intent to Levy |
| Cost | Penalties and interest keep accruing |
A reminder is a head start
Because the LT38 comes before any intent-to-levy notice, you have time and leverage. Resolving now is far easier than reacting to a tax levy later. See IRS Topic 201.
How to respond to an LT38
- Confirm the balance against your IRS account transcripts.
- Pay in full if you can to stop penalties and interest.
- **Set up an installment agreement** to spread the balance over manageable payments.
- Explore settlement or hardship via an Offer in Compromise or Currently Not Collectible status.
- **Request penalty abatement** to reduce the add-on charges.
How USCTS helps
An LT38 is the IRS telling you the clock is running again. We pull your transcripts, confirm exactly what you owe and for which years, and put a resolution in place before the notices escalate. If you have multiple years of back taxes or unfiled returns, we handle the full account so you are not back here in a few months.
An LT38 means the IRS is back in motion. So are we.
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