IRS LT19 Notice:
What it Means and How to Respond

IRS LT19 Notice: What it Means and How to Respond

If you’ve received a few IRS collection notices, it may only be a matter of time until IRS LT19 notice reaches your mailbox. This is an automated collection notice informing you of the IRS’s attempt to collect your tax debt. By responding to this notice in a timely manner, you can avoid more aggressive collection efforts and protect your finances. 

This notice also directs you to the IRS’s official page on the letter, making it easy to find more information and start exploring payment options. For more personalized help with your LT19 notices, call Damiens Law at 601-873-6510.

Key Takeaways:

• IRS LT19 – you have an unpaid balance that requires immediate attention.
• Payment options – payment in full, payment plans, and settlement options.
• What if you don’t respond – Ignoring LT19 may lead to escalated collection efforts, including levies, liens, and wage garnishment.

What is the IRS LT19 Notice?

IRS Notice LT19 is one of many automated letters sent by the IRS to delinquent taxpayers. 

LT19 (Pay Your Outstanding Tax Returns) is simply reminding you that you have unpaid taxes that the IRS is trying to collect. This notice was put into production in 2021 and the IRS has recently ramped up LT19 mailings to delinquent taxpayers.

The IRS generally sends this notice when the following conditions are met:

• You owe tax debt that you have not yet paid or resolved with a payment plan
• You have not responded to other letters from the IRS

LT19 is not a final notice, and so it does not meet the legal requirements for imminent levies and liens. The IRS will continue to escalate if you ignore LT19, but in most cases, you will receive additional notices before the IRS starts garnishing wages or seizing assets.

Steps to Take After Receiving Notice LT19

It’s tempting to ignore an IRS notice, especially if you know that it isn’t the final one you receive before levies, liens, or wage garnishment. However, it’s important to take action quickly to get informed and protect your good standing with the IRS. Here’s what you should do when you receive this notice:

Review the Notice Carefully

Read the notice in full. This is one of several that the IRS has redesigned and revamped in recent years to make it easier to follow. The letter includes information on how much you owe, your payment options, and options available to you if you cannot pay your taxes upfront.

Check Out Payment Options

Notice LT19 includes information on how you can pay your tax debt. You can either use the attached payment receipt to send a payment via check or money order, or you can pay online via the IRS’s payment portal. If you can’t pay in full, consider the following options:

Set Up a Payment Agreement

A streamlined payment agreement may be available to you if you owe $50,000 or less and can make the minimum payment for the next 72 months. Unlike other payment arrangements, this option doesn’t require extensive financial reporting—you can typically apply online and get a decision right away. If you don’t qualify for this option, you can still set up payments, but you’ll need to provide additional financial information. 

Look Into an Offer in Compromise

If you can’t afford the minimum monthly payment that would allow you to pay your tax debt off in 72 months, don’t give up. There are still options that may be accessible to you. An offer in compromise lets you settle your tax debt for an amount lower than the total debt. The amount the IRS will accept is dependent on your income and assets. If they feel you are able to afford your tax debt in full—either by paying upfront or by setting up an installment agreement—they are unlikely to accept your offer in compromise application. 

Consider a Partial Payment Installment Agreement

A partial payment installment agreement is another payment plan option that offers lower monthly payments, but with this option, the payments aren’t structured to pay off the debt in full. Instead, you pay until you reach the Collection Statute Expiration Date on your debt. At that point, the IRS stops attempting to collect the rest of what you owe. 

Apply for Currently Not Collectible If You’re Experiencing Hardship

Finally, if you cannot afford any payments toward your tax debt, look into currently not collectible status. This is essentially a temporary freeze on collection activities until the IRS determines that your financial situation has improved. However, if you can’t pay for a significant amount of time, the tax debt may expire, and you won’t have to pay it. 

Talk to a Tax Attorney

Working with the IRS can be stressful, which is why so many people ignore countless IRS notices until their assets are at risk of being seized. That’s where our team can help. When you connect with a tax lawyer, you can give them the notices you’ve received from the IRS, explain your financial situation, and discuss potential outcomes. This is often the best option for those who are so overwhelmed by IRS contact that they can’t take any action.

How to Resolve Issues With Different Resources 

While the IRS has a reputation for being inflexible and unyielding, they do their best to make it possible for taxpayers to handle their tax debt without losing their assets or wages. As noted on the LT9, there are multiple ways you can reach out to the IRS and explore your payment options. 

Help From the IRS

On your LT19 notice, you’ll see a phone number that allows you to connect directly to an IRS representative. If you want to talk to them about your payment options and where you are in the collection process, you can call them directly. Keep in mind, however, that wait times are notoriously long, and the IRS agent you talk with works for the IRS. If you work with a tax attorney, they represent your best interests. 

Taxpayer Advocate Service

The Taxpayer Advocate Service is an independent organization in the IRS that strives to help taxpayers get treated fairly when facing tax issues. Not only do they provide substantial guides and resources to taxpayers, but they can also provide personalized assistance if you meet certain requirements. If you’re at imminent risk of losing assets in a way that would leave you homeless or unable to feed your family, the TAS may be able to intervene and provide assistance.

Appeals and Disputes

Perhaps you think the balance is incorrect or you know that you have already paid the taxes you are now being billed for. You have the right to request a Collection Due Process hearing with the IRS Independent Office of Appeals before the IRS moves forward with a levy. This hearing both allows you to discuss alternatives to levies and gives you the chance to dispute how much you owe. There are also a few different ways to appeal tax debts and collection actions. 

Damiens Law

The team at Damiens Law has helped thousands of taxpayers like you handle complex, expensive tax problems. You don’t have to face the IRS alone; call us at 601-873-6510 to get on the path to compliance and relief from tax issues.

Consequences of Ignoring LT19

What happens if you ignore LT19? The IRS won’t stop pursuing you and trying to get you to pay what you owe. If you continue to ignore them, they may move forward with LT11 or Letter 1058. 

These letters are the final notices you receive before the IRS moves forward with seizing your property. Once the IRS has sent this notice and waited 30 days, they are legally permitted to claim your assets. Depending on what you have, the IRS may seize your bank account, garnish your wages, place a lien on your assets as a whole, or take other valuable assets.

Even if you aren’t quite at the point of risking levies, liens, and garnishments, the financial penalties can be painful. Until your tax debt is paid in full, interest and penalties continue to accrue. IRS interest compounds daily, which makes it possible for your tax debt to grow far faster than expected. Failure-to-pay and failure-to-file penalties continue to build up until they reach 25% of your initial amount due.

At some point, the IRS may take you out of the automated collection system and assign your case to a revenue officer. They often go this route if you are dodging their contact efforts and you owe a significant amount of money. When a revenue officer gets involved, you can expect more aggressive collection actions.

Frequently Asked Questions

Why did the IRS send LT19?

You have an unpaid tax balance that the IRS is attempting to collect.

Can I negotiate the amount I owe or set up a payment plan?

The IRS may be willing to negotiate with you if your income and assets are low enough to warrant an offer in compromise. You can also set up a payment plan that allows you to spread your payments out over several years.

What happens if I ignore LT19?

Interest and penalties will continue to accrue, and at some point, the IRS may decide to move forward with levies and liens. This hampers your ownership rights and can make it very difficult for you to get credit.

How do I contact the IRS?

Notice LT19 includes a phone number that you can call to talk directly to a representative.

How can I set up a payment agreement online?

The IRS Online Payment Agreement system allows you to apply online and receive a decision right away. If you already have an installment agreement or your debt exceeds certain limits, you may need to send in a paper application or contact the IRS directly.

Is LT19 a final notice?

No. The IRS has other notices to send before they can move forward with a levy or lien.

Can I challenge the IRS’s calculations or the amount due?

Yes. A Collection Due Process hearing lets you appeal the amount due and any proposed collection actions.

What if I can’t afford to pay in full?

You can look into payment options like installment agreements, an offer in compromise, a partial payment installment agreement, or currently not collectible status.

How can Damiens Law help me?

Our exclusive focus on tax law gives us the knowledge and experience needed to handle all types of tax problems, no matter how complex. We can explain what options are and are not suitable for you and help you through the application process for whichever form of relief best suits your needs.

Anxious and unsure of your next steps after receiving IRS LT19 in the mail? The team at Damiens Law is here for you. Let’s talk about your options and get a better understanding of where you are in the collection timeline. Contact us online or call us at 601-873-6510.