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August 15.2025
2 Minutes Read

Immediate Action Required: IRS LT36 Notices Impacting Federal Employees and Retirees

IRS LT36 Notices for federal employees about tax issues.

Understanding the IRS's New LT36 Notices for Federal Employees

In perhaps one of the most significant updates for federal employees and retirees, the IRS is distributing LT36 notices to those who may have unresolved tax issues. This initiative, part of the Federal Employee/Retiree Delinquency Initiative (FERDI), aims to ensure tax compliance using payroll and pension data. It's vital for recipients to understand the implications of these notices and the necessary steps to take.

What Do You Need to Know About LT36 Notices?

If you receive an LT36 notice, responding quickly is crucial. Even if you believe you don't owe any taxes, not filing your tax return can trigger this notice. It's essential to verify the notice, as mistakes can happen—errors in calculations or notices sent to the wrong taxpayer can lead to confusion. Remember, the IRS has the authority to garnish wages or withhold pensions, which underscores the importance of addressing any discrepancies immediately.

Protect Yourself from Potential Consequences

Ignoring the LT36 notice can lead to severe consequences, including wage garnishment and even job loss. As proposed rules from the Office of Personnel Management might allow for fast-tracked dismissal over unresolved tax debts, federal workers cannot afford to wait. It's also notable that those serving in combat zones are granted some protections; collection is paused for active combat services.

Steps to Resolve Your Tax Issues

Upon receiving an LT36 notice, take these proactive steps:

  • Review the Notice: Carefully check the accuracy of the details presented in the notice.
  • Contact the IRS: If the notice is incorrect or confusing, call 800-829-7650 for assistance.
  • Consider a Payment Plan: For those unable to pay their total tax debt, exploring IRS payment options can provide some relief.
  • Seek Professional Help: Don’t hesitate to ask your tax professional or contact the Taxpayer Advocate Service if you're experiencing financial difficulties.

Take Action—Don't Wait!

The distribution of LT36 notices represents a serious concern for many federal employees and retirees. Addressing tax issues quickly can save you from potential financial burdens. So, if you receive such a notice, act now—verify, communicate, and resolve!

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Trump Eases Burden on Taxpayers by Ending Historic Government Shutdown

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