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Letter 16: Unpaid Taxes or Missing Returns

Posted by Juda Gabaie | Jun 24, 2024 | 0 Comments

Receiving Letter 16 from the IRS doesn't mean the IRS is going to start seizing your assets right away—so don't panic. The IRS is simply informing you that you have a tax balance due or that you're behind on tax returns. Both of these issues can be easily resolved as long as you act quickly. Let's look at the details of LT16 more closely.

What Is LT16 from the IRS?

If you receive LT16 from the IRS, it's because there is a balance due on one of your accounts, you have unfiled tax returns due, or both. The notice will let you know how much you owe, when the amount is due, and how to pay. If you're missing tax returns, it'll indicate which years are unfiled.

Ignoring the letter is not a good idea, as the IRS could take what it calls “enforcement action.” It could seize your assets or wages or file a federal tax lien, which would affect your credit score. Also, interest and penalties keep getting added to the amount you owe as long as the balance is unpaid.

How Should Handle a LT16?

The LT16 notice should have a list of next steps. Typical options are filing your missing returns, paying your outstanding balance, or calling the IRS to dispute the amount owed. If you call the IRS to disagree with the notice, you'll need to have adequate paperwork (such as canceled checks or copies of filed returns) ready to back up your arguments.

If you can't pay the amount in full by the date listed on the notice, you might be able to set up an installment agreement with the IRS. You must be current on your tax returns if you want to set up this type of payment agreement.

Call a Reliable Maryland Tax Attorney

With the help of a tax attorney, you can ensure your debts are paid to the IRS. If you can't pay right away or don't agree with the IRS, having an attorney's assistance can be extremely beneficial. At Gabaie & Associates, LLC,  we help Maryland taxpayers in Baltimore, Columbia, Frederick, and Rockville. Call our offices at (410) 358-1500 or send us your info via our online form to schedule a consultation.

About the Author

Juda Gabaie

Juda Gabaie Esq. has dedicated his career in defending clients nationwide to resolve tax disputes before the Internal Revenue Service and the state taxing agencies. Juda has represented clients before the US Tax Court, Maryland Tax Court, and Comptroller of MD hearing compliance. As an adjunct prof...


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Time is of the essence when it comes to tax-related issues. If you are uncertain as to what your next step should be, contact the reliable tax attorneys at Gabaie & Associates, LLC today.