If you just opened a letter titled IRS Notice LT39, the IRS is reminding you that you owe a significant tax balance (usually $10,000 or more) and is deciding whether to move forward with a Notice of Federal Tax Lien and future collection action.

This notice is a warning shot. You’re not at full levy yet, but you’re much closer than you may realize.

IRS Notice LT39 At a Glance

• Notice Type: Reminder Notice (Balance Due)
• Generated By: IRS ACS (Automated Collection System)
• Preceded By: At least one other LT or CP balance-due notice
• Followed By: Federal tax lien determination and potential enforced collection
• Recommended Action: Pay off balance due or enter into a formal resolution with the IRS

IRS Notice LT39 Explained, Part by Part

Part 1: “Please Act on Your Balance”

At the top of IRS Notice LT39, the IRS tells you plainly to “please act on your balance.”

You’ll see:

• Your current total balance, down to the penny
• A reminder that this amount will increase as interest and penalties continue
• A note that you may disregard the notice only if you already have an active payment or resolution agreement with the IRS

The tone is softer than “Amount Due Immediately,” but don’t let that fool you—this is usually the last reminder before the IRS decides on a federal tax lien and possible levy action.

Part 2: What the IRS Wants You To Do Immediately

Next, the LT39 lists what the IRS wants you to do right now, usually along these lines:

• Pay your balance in full (the IRS’s preferred choice)
• Apply for an installment agreement to pay over time
• Pay as much as you can now while you work out a longer-term solution

It will also point you to information on options if you can’t pay in full due to financial hardship.

Part 3: Official Notice Webpage

You’ll see a small box with a link to the IRS’s official LT39 webpage.

This page mostly repeats what’s already in the notice, but it can be useful for confirming that the notice you received is legitimate and for basic FAQs.

Part 4: Your Billing Summary

The Billing Summary section breaks down what the IRS believes you owe by year:

• Tax period ending – the year (or quarter) of the liability
• Form number – usually Form 1040 for individuals
• Amount you owed – original tax when the return was filed or assessed
• Interest – interest added on top of the tax
• Failure-to-pay penalty – penalty for not paying on time
• Total – tax + penalties + interest

Use this section to compare the IRS’s numbers to your own records and bank payments.

Part 5: If You Can’t Pay Due to Financial Hardship

Here, the IRS explains options if paying in full isn’t realistic.

Option 1: Temporary Delay of Collection (CNC Status)
The IRS may place your account in Currently Not Collectible (CNC) status if your financials show you cannot pay without causing hardship.

• Collection is paused, but interest and penalties continue.
• If your income later increases, the IRS can re-review and resume collection.

Option 2: Settle Your Tax Debt (Offer in Compromise)
The IRS may accept an Offer in Compromise (OIC)—a settlement for less than the full amount—if you qualify.

• Qualification is based on a strict formula using your income, necessary expenses, and equity in assets.
• Many taxpayers do not qualify, so don’t assume an OIC is automatic just because you’ve seen commercials on TV.

Part 6: Consequences If You Don’t Pay

LT39 also explains what can happen if you do not respond or resolve the balance.

1. Filing of a Notice of Federal Tax Lien
The IRS already has a legal claim to your assets once tax is assessed, but it becomes public record when a Notice of Federal Tax Lien (NFTL) is filed in county or state records.

• Potential impact on creditworthiness and borrowing ability
• Lenders and other parties may see the lien when they run searches

2. Levy

If the situation progresses, the IRS can eventually levy (seize):

• Bank accounts
• Wages and other income streams
• Certain other non-exempt assets

LT39 itself is not the levy—it’s a warning that you’re getting closer to enforcement.

3. Passport Revocation or Denial

If your IRS debt is high enough (currently $62,000 or more, indexed for inflation), the IRS can certify your debt to the State Department. This can lead to:

• Denial of a new passport
• Denial of renewal
• In some cases, revocation of an existing passport

Part 7: IRS Help and Contact Information

Later in the notice, the IRS includes:

• Phone numbers to call about your balance
• Mailing addresses for written correspondence or payments
• A note that each spouse will receive their own LT39 if you filed jointly

You’ll also see references to:

• The Taxpayer Bill of Rights
• Publication 1 (Your Rights as a Taxpayer)
• Low-Income Taxpayer Clinics (LITC)
• The Taxpayer Advocate Service (TAS)

What You Should Do If You Receive an LT39 Notice

Step 1: Confirm the LT39 Is Correct

• Compare the IRS’s balance to your filed returns and payment history.
• Make sure there are no missing or misapplied payments.
• Verify that the years listed actually belong to you (identity-related errors do happen).

Step 2: Correct Any IRS Errors

If something looks wrong:

• Call the IRS number listed in the LT39 to discuss your options and dispute any incorrect tax amounts.
• Use the penalty-related phone number if you’re disputing penalty calculations.
• Keep notes of dates, times, names, and conversation details for your records.

If dealing with the IRS directly feels overwhelming, a tax professional can do this for you.

Step 3: Seek Penalty Abatement

Penalty relief is not guaranteed, but it’s often worth pursuing:

• First-time abatement for otherwise compliant taxpayers
• Reasonable cause abatement if you had serious illness, natural disaster, or other significant hardship
• Penalty relief tied to erroneous written IRS advice

A well-documented penalty abatement request can save thousands over time.

Step 4: Choose a Resolution Strategy

Once the numbers are correct, you still have to deal with the balance. Common options:

• Pay in full, if possible
• Installment agreement (standard or partial-pay)
• Offer in Compromise, if you qualify
• Currently Not Collectible status if you truly cannot pay

The right option depends on your income, assets, and long-term goals.

Why Work With a CPA Firm Instead of a Generic “Tax Relief” Company?

When you receive IRS Notice LT39, you’re not just dealing with collection letters—you’re facing the possibility of federal tax liens, levies, and long-term financial impact. You need a CPA Firm.

There are two very different kinds of help available:

CPA Firm (like Corridor Consulting CPAs)

A licensed CPA firm:

• Is regulated by the state board of accountancy and bound by strict ethical rules
• Understands both tax law and accounting, so your tax returns, financial statements, and collection strategy all stay aligned
• Can help you reconstruct books, correct prior returns, and build a realistic, defensible resolution plan
• Represents you before the IRS with a focus on long-term compliance, not just quick settlements

Generic “Tax Relief” Companies

Many heavily advertised “tax relief” outfits:

• Are not CPA firms and may have no CPAs on staff
• Focus mainly on selling Offers in Compromise, even when clients don’t qualify
• Rarely address underlying bookkeeping or structural problems that caused the tax debt
• May rely on aggressive sales tactics and leave you with incomplete or unrealistic resolutions

When the IRS is considering a federal tax lien and possible levy, you want a team that can:

• Read and interpret your IRS transcripts
• Reconcile them with your actual financial records
• Design a plan that fits both your cash flow and IRS rules

That’s where a local, licensed CPA firm makes a real difference.

How Corridor Consulting CPAs Can Help

At Corridor Consulting CPAs, we help taxpayers in Cedar Rapids, the Corridor region, and across Iowa respond strategically to notices like LT39 and avoid unnecessary liens and levies.

When you bring your LT39 to us, we can:

• Pull and analyze your IRS account transcripts
• Verify the accuracy of your tax and penalty balances
• Map out your realistic resolution options (installment agreement, OIC, CNC, or a combination)
• Coordinate with you on bookkeeping clean-up and amended returns, if needed
• Communicate with the IRS on your behalf so you’re not spending hours on hold

You don’t have to guess what to do with IRS Notice LT39—or face the IRS alone.

Take the Next Step

If you’ve received IRS Notice LT39 and you’re worried about tax liens, levies, or your long-term finances, now is the time to act.

• Gather your LT39 notice, any prior IRS letters, and your recent tax returns.
• Reach out to Corridor Consulting CPAs to schedule a confidential tax debt review.
• We’ll help you understand where you stand, what the IRS can do next, and how to get ahead of it with a clear plan.

Additional IRS Resources

Here are some official IRS resources you may want to review (add outbound links in your post):

• Understanding Federal Tax Liens – IRS overview of how tax liens work
• Payment Plans, Installment Agreements – options for paying over time
• Offer in Compromise – details on settling tax debt for less than you owe
• Taxpayer Bill of Rights – your fundamental rights when dealing with the IRS