IRS Letter LT38: What It Means & What to Do
LT38 is an IRS reminder of your unpaid balance after collection notices paused during the pandemic. It is not an audit. Learn your payment and hardship options.
Written and maintained by Joseph Lancaster, Settlement Officer since January 2013
Published · Checked against IRS sources on
Quick answer
What is an IRS LT38 letter and what should I do?
LT38 is a reminder of your unpaid balance sent after pandemic-era collection notices resumed. It is not an audit. File any missing returns, pay what you can, and set up a payment plan or ask about hardship status if you cannot pay in full.
Who this applies to: People with an outstanding IRS balance whose collection notices were paused during the pandemic.
What can change this answer
- Not an audit
- Payments can take 21 days to post
- Online plans available under $50,000
LT38 is an update on your outstanding balance. The IRS sends it because some collection notices were suspended during the pandemic and normal operations have resumed. It is not an audit.
Immediate Steps to Take
- 1Read the letter and check whether it lists missing returns
- 2File any missing returns as soon as possible
- 3Pay what you can now to reduce interest and penalties
- 4Set up a payment plan or ask about hardship status if you cannot pay
What LT38 means
LT38 updates you on a balance you still owe and points you to self-service options. Interest and applicable penalties stop growing only when the balance is paid in full, so paying what you can now lowers what is added later.
If you cannot pay in full
If you owe less than $50,000, you may be able to set up an installment agreement with the IRS Online Payment Agreement tool, the fastest way to get one approved. Otherwise call the number on the letter or mail a payment plan request. See installment agreements.
If you are in financial hardship
The IRS may mark your account currently not collectible, which temporarily delays collection. Penalties and interest still accrue and the debt does not go away. Be ready to discuss your income, expenses and assets. In some cases an offer in compromise lets you settle for less than the full amount.
Frequently Asked Questions
I already paid. Why did I get LT38?
Payments can take up to 21 days to post. If you paid in full within the last 21 days, you can disregard the letter.
I already have a payment plan. What should I do?
Keep making payments under your agreement. If your plan is not yet approved, pay as much as you can now.
Is LT38 an audit?
No. The IRS says LT38 is not an audit; it is an update on your balance.
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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