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.
How to recognize a real LT38
The IRS Automated Collection System (ACS). The Internal Revenue Manual says LT38 was created to tell taxpayers the IRS is resuming normal operations after some collection notices were suspended during the pandemic. The IRS started mailing it in January 2024, in stages over several months.
- IRS materials call it Letter 38, 'Reminder, Notice Resumption'. It went to accounts that had moved to ACS status while automated reminders were paused.
- It includes a summary of the bill showing the tax period, tax form, amount owed, interest, and failure-to-pay penalty.
- The balance it shows already includes any automatic pandemic-era penalty relief that applied to the account.
- It includes QR codes for reaching your IRS online account and lists payment options and help for people who can't pay in full.
- The IRS page for it says, 'This isn't an audit.'
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.
Illustrative example
Example: Gary hears about a 2021 balance for the first time in two years
Gary (an illustrative taxpayer) owed about $6,400 for 2021. His last bill was a CP503 in 2022, and then the letters stopped. In February 2024 an LT38 arrived with an updated balance. Because his 2021 tax was under $100,000 and he had received his first balance-due notice inside the qualifying window, the failure-to-pay penalty for the pause period had been waived automatically, and the LT38 balance already reflected that.
Interest had still been adding up. Gary checked the figures against his IRS online account and applied for a payment plan before the IRS's 35-day follow-up date passed.
Because he acted, the account was handled through his payment plan and not through the next ACS letter, which could have been a stronger collection letter and not just another reminder.
Names and numbers are made up to show how this notice typically plays out.
Mistakes that make a LT38 worse
- Assuming the pause meant the debt was forgiven. The relief waived only certain failure-to-pay penalties for 2020 and 2021. Interest and the tax itself remained.
- Asking for 2020 or 2021 penalty relief you may already have received. The LT38 balance already reflects automatic relief when it applied, so compare it with your transcript before asking again.
- Treating LT38 like a routine CP501 reminder and waiting for the next one. The IRM says the next letter may be a different ACS letter, such as LT16 or LT19, not another CP500-series reminder.
- Ignoring the 'missing returns' instructions. The IRS page says to file any missing returns as soon as possible, and unfiled years limit which resolution options you can get.
What happens if you ignore a LT38
Under the IRM, the IRS sets a 35-day follow-up after the LT38. If you haven't responded by then, the system issues another ACS letter, such as LT19 or LT16. The IRS also said the next notice may not be a CP500-series reminder, because the account is reviewed again at that point.
Often comes before a LT38
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.
Checked against IRS primary sources — see how we source these guides. You can verify any notice directly at IRS.gov. The dates and instructions printed on your specific notice always control. Official IRS explanation: Understanding your LT38 notice.
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