LT38: Reminder About Your Unpaid Tax Balance

Why you might get this

• During the pandemic, the IRS paused sending some collection notices, and now it's turning those reminders back on.
• You have an unpaid tax balance on your account.
• You may have one or more missing tax returns the IRS still needs from you.
• The IRS wants to update you on what you owe and show you self-service ways to fix it.

The deadline

This is a reminder notice, not an audit and not a bill demanding immediate legal action. Still, interest and penalties keep adding up until you pay in full, so it's best to act as soon as you can. Follow the timing and instructions printed on your own notice.

This notice doesn't carry a fixed response deadline, but it still deserves attention — see what to do below.

What to do

1. Read your notice carefully and follow the instructions on it.
2. File any missing tax returns as soon as possible if your notice says you have them.
3. Check your balance in your IRS Online Account and pay in full if you can to stop interest and penalties from growing.
4. If you can't pay it all, pay what you can now and look into a payment plan (installment agreement) online — often available if you owe less than $50,000.
5. If paying would cause real hardship, ask about 'currently not collectible' status or an Offer in Compromise (settling for less than you owe); use the Offer in Compromise Pre-qualifier tool to check.
6. If you already paid or set up a plan, know that payments can take up to 21 days to post — if you paid in full within the last 21 days, you can ignore this notice.
7. If you already filed a return the IRS marks as missing and it's been over 10 weeks, send a signed copy again.
8. Call the toll-free number on your notice if something looks wrong or you need help.

What happens if you ignore it

Your balance keeps growing as interest and penalties continue to add up, and the IRS can move ahead with normal collection actions to get what you owe.

If you can't pay, are facing financial hardship, or think a return was wrongly marked as missing, contact the IRS using the number on your notice. You may also qualify for free help from the Taxpayer Advocate Service or a Low Income Taxpayer Clinic. Identity theft or innocent spouse situations have their own relief paths.

What the LT38 Notice Means

If you got an LT38 notice, the IRS is letting you know it has restarted collection reminders that were paused during the pandemic. This isn't an audit — it's an update telling you that you still have an unpaid balance, and possibly some missing tax returns.

The main message is simple: you owe money, and interest and penalties keep adding up until you pay it off. The IRS wants you to know your options so you can handle it on your own terms.

Here's what to do. Read your notice carefully and file any missing returns it lists. Check your balance in your IRS Online Account, then pay in full if you can. If you can't pay all of it, pay what you can and look into a payment plan — you can often set one up online if you owe less than $50,000. Facing real hardship? Ask about "currently not collectible" status or an Offer in Compromise.

For tax years 2020 and 2021, some failure-to-pay penalties were automatically forgiven, and that relief is already reflected in your balance.

Solace can keep an eye on your IRS account and let you know if anything changes.