What does this mean to me?

The Notice LT16 informs you that there is a balance due (money you owe the IRS) on one of your tax accounts and tells you how much you owe, when it’s due, and how to pay and/or it informs you that you have unfiled tax returns due.  

If you can’t pay the full amount by that date, you need to figure out what payment options might work for your situation, and act to set up a payment plan or discuss other ways to pay off your balance. Being proactive in addressing the tax debt may prevent additional penalty and interest charges and eliminate the need for the IRS to take action to collect the balance. For specifics, see I got a notice from the IRS. 

If you choose not to respond to the Notice LT16, the IRS may send further taxpayer collection notices to you requesting payment for the tax balance owing. The IRS may also file a Notice of Federal Tax Lien or issue a levy. 

For specifics on your notice, visit Understanding your IRS Notice or Letter. 

How did I get here?

You have a balance due on your tax account or you have unfiled tax returns.  This notice is being sent to you to let you know how much you owe, when it is due, and how to pay or what year tax returns are unfiled. 

What are my next steps?

The first thing to do is to check the return address to be sure it’s from the Internal Revenue Service and not another agency. 

Is it from the IRS? 

If it’s from the IRS, the notice will have instructions on how to respond to the notice received and who to contact. I Got a Notice From the IRS for further details. 

Next, you should read the notice carefully. It explains how much you owe, when your payment and/ or tax return is due, and your payment options. 

If you disagree 

If you disagree with the notice, call the IRS at the toll-free number on the top right corner of your notice. Please have your paperwork (such as cancelled checks, copy of filed returns, etc.) ready when you call. See also Publication 5, Your Appeal Rights and How to Prepare a Protest If You Don’t Agree. 

 If you can’t pay the full amount by that date, you need to figure out what payment options might work for your situation.

Being proactive in addressing the tax debt may prevent additional penalty and interest charges and eliminate the need for the IRS to take action to collect the balance. 

 If you believe you have an acceptable reason for a penalty to be removed or reduced, you may complete Form 843, Claim for Refund and Request for Abatement, or send a signed statement to the IRS explaining your reason why. The IRS is required by law to charge interest, and will not remove or reduce interest for reasonable cause. For specific instructions, see Notice 746, Information About Your Notice, Penalty and Interest.