Understanding IRS LT40: What it means and How an Enrolled Agent Can Help

What is the IRS LT40 Notice?

The IRS LT40 Notice is a letter sent by the Internal Revenue Service to taxpayers, informing them of an ongoing issue related to their tax account. This notice indicates that the IRS has identified a discrepancy or a potential problem, such as an unpaid balance, a missing return, or other changes that require attention. Its primary purpose is to alert taxpayers, encouraging them to review their tax situation and take necessary action to avoid further complications.  In most cases, it is a call to send in more money.

Common Reasons for Receiving an LT40 Notice

There are several reasons why a taxpayer might receive an LT40 Notice.

• ·         It could stem from unpaid taxes

• ·         unfiled tax returns

• ·         discrepancies discovered during IRS processing.

The notice serves as an early warning, giving taxpayers an opportunity to investigate the issue, address any mistakes, and take steps to resolve the perceived issue.

Options Available to Taxpayers Upon Receiving an LT40 Notice

There are several options available:

• ·         paying the outstanding balance in full

• ·         setting up a payment plan or installment agreement

• ·         filing any missing tax returns

• ·         (my favorite) disputing the IRS’s findings

Acting promptly is crucial, as ignoring the notice will lead to penalties, interest, and collection actions.

How Steve Perry, Enrolled Agent from Books, Taxes & More Can Assist

An Enrolled Agent (EA) is a tax professional authorized by the U.S. Department of the Treasury to represent taxpayers before the IRS. In the event of receiving an LT40 Notice, Steve can provide invaluable assistance by interpreting the notice, explaining the taxpayer’s rights and responsibilities, and formulating the best course of action. He can communicate directly with the IRS, negotiate on behalf of the taxpayer, and help arrange payment plans or dispute resolutions, ensuring the issue is handled promptly and correctly.

Why Engage Steve Perry, EA?

Engaging Steve Perry, EA from Books, Taxes & More, brings peace of mind and expert guidance during a potentially stressful time. His in-depth knowledge of tax law, IRS processes, and negotiation tactics maximizes the likelihood of a favorable outcome. Additionally, Steve ensures that all communication is clear, and deadlines are met, reducing the risk of escalated penalties or further enforcement actions.

Conclusion: Taking Prompt Action with Professional Support

The IRS LT40 Notice serves as an important indicator that immediate attention is needed on a tax matter. Taxpayers who receive this notice should avoid delays and consider consulting with Steve Perry, EA. With professional help, navigating the complexities of IRS communication becomes manageable, increasing the chances of resolving issues swiftly, minimizing financial impact, and ultimately achieving peace of mind.