IRS notice decoder
LT38: The IRS Is Turning Collections Back On
An LT38 is the restart letter: the IRS suspended some collection notices during the pandemic, and this notice tells you normal operations are resuming, updates your outstanding balance, and offers self-service options to resolve it. The IRS's own page adds, in as many words, "This isn't an audit." What follows it, if the balance stays unpaid, is the regular collection notice sequence.
General information, not tax or legal advice. Deadlines and dollar figures below reflect what the IRS publishes and can change; the controlling dates are the ones printed on your own notice. ClearChoiceRadar is not affiliated with the IRS or any government agency.
Where a restart reminder fits
What the letter actually asks
Three instructions carry the page: read the notice and follow its instructions, file any missing returns as soon as possible, and pay the balance, since interest and applicable penalties stop accruing only when it is paid in full.
If you paid in full within the last 21 days, the IRS says to disregard the letter, because payments can take up to 21 days to post.
Built-in relief
Some penalty relief already happened automatically
Because of the notice suspension, the IRS automatically granted relief for certain failure to pay penalties for tax years 2020 and 2021. For balances under $100,000, the LT38 amount already reflects that relief; you do not need to apply for it.
LT38 questions
Is an LT38 an audit or new debt?
Neither. The IRS page states directly that it is not an audit; it is an update of an existing unpaid balance as suspended collection notices resume, plus self-service options to resolve it.
Is there a deadline on an LT38?
No hard deadline is stated. The IRS's framing is that paying in full as soon as you can minimizes interest and penalties, and leaving it unpaid leads back into the normal collection notice sequence.
I paid recently but still got an LT38. Why?
Payments can take up to 21 days to post to your account. The IRS says to disregard the letter if you paid the balance in full within the last 21 days.
Can I still get a refund for an old year the IRS wants filed?
Only within the statute: the page notes a refund requires filing within 3 years of the original due date, or within 2 years of paying the tax, whichever applies. After that, the refund is forfeited even though filing is still required.
Sources: IRS: Understanding your LT38 notice. The deadline that governs your case is the one printed on your notice.
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