IRS Letter LT16: What It Means & What to Do
LT16 means the IRS is trying to collect unpaid tax, or its files show missing tax returns, or both. Learn how to file, pay, set up a payment plan and avoid enforcement.
Written and maintained by Joseph Lancaster, Settlement Officer since January 2013
Published · Checked against IRS sources on
Quick answer
What is an IRS LT16 letter and what should I do?
LT16 means the IRS is trying to collect unpaid tax, its files show missing returns, or both. File any missing returns, pay what you can, and set up a payment plan for the rest to avoid enforcement such as a levy or lien.
Who this applies to: People with an unpaid IRS balance, missing tax returns, or both.
What can change this answer
- Enforcement can include seizing assets or wages or filing a tax lien
- You must be current on filings to get an installment agreement
- Appeal rights are explained in Publication 1660
Recommended next step
File any missing returns first, then pay or request an installment agreement.
Read the full guideThe IRS says it sends LT16 because it is trying to collect unpaid taxes from you, its files show missing tax returns from you, or both. It warns that taking action is essential to avoid enforcement, which can include seizing assets or wages and filing a notice of federal tax lien.
Immediate Steps to Take
- 1Read the letter to see whether it is about a balance, missing returns, or both
- 2File any missing returns the letter lists as soon as possible
- 3Pay what you can; interest and penalties stop being added once the balance is paid in full
- 4If you cannot pay in full, ask for an installment agreement (you must be current on filings)
- 5If you disagree or are in financial hardship, call the number on the letter and ask about your appeal rights
What LT16 means
The IRS says LT16 is sent when it is trying to collect unpaid taxes and/or its files show missing tax returns from you. It is a collection letter, so the IRS stresses that you need to act to avoid enforcement. That enforcement can include seizing your assets or wages, or filing a notice of federal tax lien, which can affect your credit and ability to borrow.
If the letter says you owe, our balance due timeline shows where it sits in the collection sequence.
If LT16 says returns are missing
The letter identifies which returns are missing, and it may cover more than one year. File them as soon as possible. If you already filed a return the IRS lists as missing and more than 10 weeks have passed, the IRS asks you to send a signed copy again. If you do not think you had to file, check with the IRS "Do I need to file a tax return?" tool and call the number on your letter if it disagrees with the notice.
Even if you are due a refund you may still have to file. To get that refund, the IRS says the late return generally must be filed within three years of the original due date.
If you cannot pay the balance
The IRS says to pay as much as you can now and set up an installment agreement for the rest. You must be current on your filings to apply, which is why missing returns usually come first. If you are facing financial hardship, the IRS says other options are available, so call the number on your letter and explain your situation.
Your appeal rights
If the tax is in doubt, you dispute the amount, or you cannot resolve a disagreement with the IRS, it says you are entitled to a hearing with the Office of Appeals. Publication 1660, Collection Appeal Rights, explains how. If you have tried to resolve the problem through normal channels without success, the Taxpayer Advocate Service may be able to help.
Frequently Asked Questions
Is LT16 a levy?
No. The IRS describes LT16 as a letter about unpaid taxes or missing returns and warns that you need to act to avoid enforcement, which can include a levy on assets or wages or a federal tax lien.
I already filed the return LT16 says is missing. What should I do?
If more than 10 weeks have passed since you sent it, the IRS asks you to send a signed copy again. If you believe a return was wrongly reported as missing, call the number on your letter.
Can I get a payment plan after an LT16?
The IRS says you can pay what you can and set up an installment agreement for the rest, but you must be current on your filings to apply.
Authority Citations
This content is based on the following official IRS sources. All links open in a new tab.
Information current as of 2026. Tax laws change frequently. Verify with official IRS sources before taking action.
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