IRS LT38 Notice: Collection Notices Resuming
An LT38 notice tells you the IRS is restarting its automated collection reminders on your unpaid balance — it's not a levy notice itself, but the escalation sequence (and penalties and interest) resumes after it.
What a LT38 actually means
The IRS paused most automated collection mail during the pandemic backlog and has been switching it back on; LT38 is the 'we're back' letter for balances that sat quiet, sometimes for years.
The balance kept growing the whole time. The window after an LT38 — before CP504s and final notices resume — is the best time to set the resolution on your terms, and to check whether penalty relief applies to the quiet years.
What to do, step by step
- 1Pull your IRS account transcript to see the current balance, penalties, and the collection statute date.
- 2Ask about penalty relief — the IRS granted automatic failure-to-pay relief for some pandemic-era years, and first-time abatement may apply.
- 3Set up resolution now (payment plan, Offer in Compromise, or hardship status) before the escalating letters restart.
- 4Don't assume old debt is unenforceable — LT38 means the IRS still intends to collect what's within the statute.
Common questions
Why am I suddenly getting IRS letters about an old balance?+
The IRS suspended most automated collection notices during the pandemic and has been resuming them; LT38 is the restart letter. The debt accrued interest the whole time, but resolution options are all still available — and acting before the sequence escalates preserves the most leverage.
Received a LT38? Get it handled.
Talk to a tax specialist about your notice — free, no pressure, no judgment.