Tax Relief AnswersIRS Notice LT16: Unpaid Taxes or Missing Returns
The short answer
LT16 means the IRS is trying to collect unpaid taxes from you, or its files show it is missing tax returns from you, or both. The IRS page says you need to act to avoid possible enforcement, which "can include seizing your assets or wages" and the filing of a notice of federal tax lien. The IRS page does not describe LT16 as a final levy notice; use the payment due date printed on it. Source: IRS, Understanding your LT16 notice, reviewed by the IRS on May 5, 2026 and checked by us on November 3, 2026.
What LT16 says
| Question | Answer, from the IRS page |
|---|---|
| Why you got it | Unpaid taxes, missing returns, or both |
| Enforcement it mentions | Seizing assets or wages; filing a notice of federal tax lien, which could affect your credit score and ability to borrow |
| Deadline | The payment due date specified in the notice |
| Payment plan rule | You must be current on your filings to apply for an installment agreement |
| Online plan limit | If you owe less than $50,000, you may be able to set up a plan with the Online Payment Agreement application |
| Appeal right | If the tax is in doubt or you dispute it, you are entitled to a hearing with the Office of Appeals (see Publication 1660) |
| Already paid? | Payments can take up to 21 days to post; if you paid in full within that time, disregard the LT16 |
Where it sits
The IRS page does not place LT16 at a fixed step in the notice sequence. What it does make clear is that it is a collection notice, sent when tax is unpaid or returns are missing. Before the IRS can levy wages or bank accounts, the law still requires a notice of intent to levy with a right to a hearing, at least 30 days ahead (26 U.S.C. 6330). Those notices are LT11 or Letter 1058 and CP90 or CP297. See the full table on our notice numbers page.
Steps
- Read the notice to see which returns are missing, if any, and which balances are unpaid.
- File missing returns as soon as possible. See unfiled tax returns. If you filed a return more than 10 weeks ago that is listed as missing, the IRS asks you to send a signed copy again.
- If you think you did not need to file, the IRS points to its "Do I need to file a tax return?" tool, and asks you to call the number on the notice if the tool and the notice disagree.
- Pay the balance if you can. The IRS says paying in full stops enforcement and stops new interest and penalties.
- If you cannot pay in full, pay what you can and apply for an IRS payment plan once your filings are current.
- If you cannot pay anything, contact the IRS ready to discuss income, expenses and assets; it may report your account as currently not collectible. The IRS also mentions an offer in compromise as a possible option.
- If you dispute the tax, request a hearing with Appeals under Publication 1660 or call the number on the notice.
Common mistakes
- Paying without filing. The IRS says you must be current on filings to get an installment agreement.
- Believing currently not collectible status erases the debt. The IRS says penalties and interest keep running and the debt does not go away.
- Skipping a return because you are owed a refund. The IRS says you may still have to file, and a refund is lost if the return is not filed within three years of its original due date (or two years from when you paid the tax, if that applies).
- Paying a company to file old returns before checking free help. The Taxpayer Advocate Service and Low Income Taxpayer Clinics are listed on the IRS page itself.
The LT16 page says the Taxpayer Advocate Service is free and independent within the IRS, and that Low Income Taxpayer Clinics are listed in Publication 4134. It also says you do not need outside help to contact the IRS. Not sure the notice is real? See how to check an IRS letter.
FAQ
Is LT16 a final notice before levy?
The IRS page does not call it one. It warns of possible enforcement, and the law requires a notice of intent to levy with hearing rights at least 30 days before a wage or bank levy.
Can I get a payment plan after an LT16?
Possibly. The IRS says you must be current on your filings, and if you owe less than $50,000 you may be able to apply online.
What if I already filed the return the LT16 lists as missing?
If more than 10 weeks have passed, the IRS asks you to send a signed copy again, or call the number on the notice if the return was wrongly listed as missing.
Do I have appeal rights on an LT16?
Yes. The IRS page says that if the tax is in doubt or you dispute it, you are entitled to a hearing with the Office of Appeals.