What Is IRS Notice LT16?
IRS Notice LT16 is a balance due reminder notice sent when you owe federal taxes and previous IRS billing notices have not resulted in payment or resolution. It informs you that your account remains unpaid and urges you to take action to avoid further collection steps.
LT16 is more formal than earlier CP notices but does not authorize levy action by itself.
What Does an LT16 Notice Mean?
An LT16 notice means the IRS believes you still owe taxes and has not received payment, a response, or a payment arrangement. The IRS is signaling that your account is progressing through the collection process and requires attention.
Why Did You Receive an LT16 Notice?
You may receive an LT16 notice if:
- You have an unpaid tax balance
- Earlier notices (such as CP14, CP501, or CP503) were sent
- The IRS did not receive payment or a response
- No installment agreement or resolution is in place
LT16 is often issued when prior reminders have been unsuccessful.
Is LT16 a Final IRS Notice?
No. LT16 is not a final notice and does not grant levy authority. However, if the balance remains unresolved, the IRS may issue more serious notices, such as CP504 or a Final Notice of Intent to Levy (CP90 or LT11).
What Is the Deadline to Respond to an LT16 Notice?
LT16 typically requests payment or response by the date shown on the notice. While it may not include a formal enforcement deadline, responding promptly can help prevent escalation to levy-related notices.
What Happens If You Ignore an LT16 Notice?
If an LT16 notice is ignored:
- Penalties and interest continue to accrue
- The IRS may issue stronger collection notices
- The account may progress toward levy authorization notices
Ignoring LT16 increases the risk of enforcement later.
What Are Your Options After Receiving an LT16?
Common response options include:
- Paying the balance in full
- Setting up an installment agreement
- Reviewing the balance for errors
- Addressing unresolved penalties or interest
Resolving the issue at this stage is generally simpler than later in the process.
Which IRS Forms Are Related to an LT16 Notice?
Forms commonly used in LT16 situations include:
- Form 9465 – Installment Agreement Request
- Form 433-F – Financial Information Statement
- Form 843 – Request abatement of penalties or interest, if applicable
What IRS Notices Are Related to LT16?
Notices commonly associated with LT16 include:
- CP14 – Initial balance due notice
- CP501 / CP503 – Reminder notices
- CP504 – Notice of Intent to Levy (state tax refund)
When Should You Seek Help With an LT16 Notice?
You may need assistance if:
- You cannot afford to pay the balance
- Penalties and interest are increasing the amount owed
- Multiple tax years are involved
- You are unsure how to set up a payment plan
Summary
IRS Notice LT16 is a reminder that a tax balance remains unpaid after earlier notices. While it does not authorize levy action, ignoring it can lead to escalation and enforcement notices. Addressing the balance at this stage can help prevent more serious IRS collection actions.
Scope Note
This page explains IRS Notice LT16 and general response options. It does not provide legal or tax advice.