USTaxPenaltySaverLT38
MediumNotice of Collection Activity Resumption
IRS is resuming collection activities after the COVID-19 pause.
Response Deadline
60 days from notice date
Respond before this deadline to avoid additional penalties and enforcement action.
What This Notice Means
LT38 was sent starting in early 2024 when the IRS resumed normal collection activities after the COVID-19 pandemic pause. This letter notifies taxpayers that collection notices will resume and provides information about automatic penalty relief for 2020-2021 tax years. Approximately $1 billion in penalties were automatically abated.
Why You May Have Received This
- 1Had unpaid tax balance during COVID-19 collection pause
- 2Qualifies for automatic failure-to-pay penalty relief for 2020-2021
Required Actions
Review the balance stated in the letter
Check if penalty relief was applied to your account
Set up a payment plan if you cannot pay in full
Your Options
Use these calculators to understand your situation and explore resolution options.
Consequences If Ignored
- Normal collection timeline begins
- CP501 will be sent in ~8 weeks if no response
- Penalties resume accruing after relief period
Tips & Best Practices
- Check your IRS online account to see if penalties were removed
- The relief was automatic - no action required to receive it
- This starts the normal collection notice cycle (CP501, CP503, CP504 will follow)
Related Resources
Legal References
Ready to Take Action?
Our guided workflow will walk you through exactly what to do for this notice, step by step.