What Is an IRS LT16 Notice?

IRS Notices Explained
Written by Enrolled Agent
Reviewed by Enrolled Agent

The LT16 is an Urgent Request to Contact the IRS about an unpaid balance. It signals your account is at risk of enforced collection if you don’t respond quickly. Here’s what it means, how it fits into the IRS sequence, and how to protect yourself.

Quick Answer

The LT16 is an urgent notice that the IRS expects immediate contact about your unpaid balance. It’s not yet a Final Notice of Intent to Levy, but it’s very close in the collection sequence. Ignoring it can push your account to enforcement.

Important: The LT16 is a serious collection notice. Responding quickly—either by paying, arranging a plan, or seeking representation—protects your options.

Why You Received an LT16

You have an outstanding balance from prior returns.
Earlier notices (like CP14, CP501, or CP503) were sent but not resolved.
Your account is moving toward final enforcement stages.

The IRS issues the LT16 to urge immediate contact before moving to levy notices such as LT11/Letter 1058 or CP297.

What the LT16 Means

The IRS is warning that collection action is near. The notice lists your balance, explains interest and penalties, and provides instructions to contact the IRS right away. While it doesn’t itself authorize a levy, it shows that your account is flagged for escalation.

The IRS wants to see if you’ll voluntarily resolve before it uses stronger measures like liens or levies.

What to Do Next

Act quickly to prevent enforcement:

Pay in full if you can, to close the balance and stop further action.
Request an Installment Agreement to make affordable monthly payments.
Request Currently Not Collectible (CNC) if you cannot pay without hardship.
Explore an Offer in Compromise if you qualify for a settlement based on ability to pay.
File any missing returns—compliance is required for most resolutions.
Engage representation to communicate with the IRS and negotiate the best outcome.

For the bigger picture: See our
Complete Guide to Back Taxes in the U.S.
for how notices escalate and how to resolve them.

If You Ignore the LT16

Ignoring the LT16 leads to final levy notices such as LT11 or CP297. At that stage, the IRS has full authority to garnish wages, levy bank accounts, and seize assets. Penalties and interest continue until resolution.

The LT16 is often the last chance to resolve before levy authority kicks in. Responding now preserves flexibility and avoids disruption.

How Polaris Can Help

Polaris Tax & Accounting helps clients nationwide resolve LT16 notices before enforcement. Our Enrolled Agents pull IRS transcripts, confirm balances, and design the right resolution—payment plan, hardship relief, or settlement consideration.

We speak to the IRS for you and shield you from collection pressure while protecting your income and assets.

Your Next Step: If you received an LT16, act immediately.
Schedule a consultation with an Enrolled Agent today.

Related Resources

FAQs

Is LT16 the same as LT11?

No. LT16 is an urgent request to contact the IRS. LT11 is a Final Notice of Intent to Levy with full levy authority.

Do I have appeal rights with LT16?

LT16 itself doesn’t grant Collection Due Process appeal rights, but it precedes notices that do (like LT11 or CP297). Acting now prevents escalation.

How soon should I respond?

Immediately. The letter provides a contact deadline. Responding quickly keeps the account out of levy status and preserves resolution options.