Frost Law
The Internal Revenue Service recently announced their resumption of mailing balance due notices to taxpayers, a process which was generally suspended during the pandemic1. The first letter being sent is a special reminder letter, LT38. The letter is designed as a gentle reminder of a taxpayer’s outstanding tax liability and provides several available options to address the debt.
For individuals, the IRS is sending letters to taxpayers with tax debt originating before tax year 2022. For businesses, tax exempt organizations, trusts, and estates, letters are being sent to entities with tax debt originating before tax year 2023.
The IRS recently granted penalty relief for certain failure-to-pay penalties for tax years 2020 and 2021, and for taxpayers who qualified, the penalty relief is reflected in the balance due shown on LT38.
The notice should indicate the outstanding balance(s) due and corresponding tax years, and requests the taxpayer make payment arrangements. For those who are unable to pay in full, the IRS also describes some common solutions—establishing a payment plan, submitting an offer in compromise, or temporarily delaying collection due to financial hardship2.
Also featured in the notice are QR codes which direct the taxpayer to various sections of the IRS website to make payments, access their account records, or establish a payment plan.
Taxpayers who fail to address their balance due will soon be subject to more aggressive IRS collection measures, such as tax liens, levies, and garnishments, amongst other enforcement action, and the LT38 should not be ignored.
If you have questions about your IRS notice and your options to address a balance due, contact our team today at (410) 497-5947 or schedule a confidential consultation here.
The Internal Revenue Service recently announced their resumption of mailing balance due notices to taxpayers, a process which was generally suspended during the pandemic1. The first letter being sent is a special reminder letter, LT38. The letter is designed as a gentle reminder of a taxpayer’s outstanding tax liability and provides several available options to address the debt.
For individuals, the IRS is sending letters to taxpayers with tax debt originating before tax year 2022. For businesses, tax exempt organizations, trusts, and estates, letters are being sent to entities with tax debt originating before tax year 2023.
The IRS recently granted penalty relief for certain failure-to-pay penalties for tax years 2020 and 2021, and for taxpayers who qualified, the penalty relief is reflected in the balance due shown on LT38.
The notice should indicate the outstanding balance(s) due and corresponding tax years, and requests the taxpayer make payment arrangements. For those who are unable to pay in full, the IRS also describes some common solutions—establishing a payment plan, submitting an offer in compromise, or temporarily delaying collection due to financial hardship2.
Also featured in the notice are QR codes which direct the taxpayer to various sections of the IRS website to make payments, access their account records, or establish a payment plan.
Taxpayers who fail to address their balance due will soon be subject to more aggressive IRS collection measures, such as tax liens, levies, and garnishments, amongst other enforcement action, and the LT38 should not be ignored.
If you have questions about your IRS notice and your options to address a balance due, contact our team today at (410) 497-5947 or schedule a confidential consultation here.
