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IRS NOTICES: TAX DEBT

What is an LT16 notice?

Jo Willetts, EA Director of Tax Resources, Jackson Hewitt Published On June 10, 2020

IRS notices are letters sent to inform taxpayers of important tax information. Each one is different, but we can explain what the LT16 is about.

Understanding your LT16 notice

This notice is serious. This is a Final notice before the IRS takes enforcement action because you owe the IRS taxes and/or tax returns and haven’t responded to previous notices. 

Type of Notice

Tax debt; missing tax returns

Why you received the LT16 notice

You received an LT16 notice because the IRS believes you owe them money OR that you have missing tax returns. If you do not address the issues listed in your notice, you will most likely face enforcement action from the IRS, including garnishing your wages or seizing your assets. You could also have a notice federal tax lien filed against you which can affect your credit and the ability to get a loan.

Likely next steps

You must take immediate action when you receive this notice. Carefully read the notice. Second, determine if you need to file any missing tax returns and file those as soon as possible. Then, pay the taxes you owe in full by the due date or set up a payment plan. You must have all tax returns filed before being granted an Installment Agreement.  You can also contact a tax professional to learn more about your options.

If you disagree with the taxes, you can dispute them and if you can’t reach an agreement with IRS, you’re entitled to a hearing with the Office of Appeals.

LT16 Notice deadline

The deadline for a response to an LT16 notice is 10 days from the date of the notice.

If you miss the deadline

If you miss the 10-day deadline, you could face enforcement actions from the IRS, including wage garnishment and property seizure.

About the Author

Jo Willetts, Director of Tax Resources at Jackson Hewitt, has more than 25 years of experience in the tax industry. As an Enrolled Agent, Jo has attained the highest level of certification for a tax professional. She began her career at Jackson Hewitt as a Tax Pro, working her way up to General Manager of a franchise store. In her current role, Jo provides expert knowledge company-wide to ensure that tax information distributed through all Jackson Hewitt channels is current and accurate.

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