IRS Letter 3228 (LT 39) Notice: What Is It and How Should You Respond?
Summary:
The IRS Letter 3228 (LT 39) is a formal notice sent by the IRS requesting payment of outstanding tax balances. This letter requires taxpayers to pay the balance due within 10 days using the envelope provided. Ignoring or delaying a response could result in further penalties or enforcement actions, such as federal tax liens or levies. This comprehensive guide explains what IRS Letter 3228 (LT 39) entails, how to respond, and steps to take to avoid additional financial consequences.
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Receiving a notice from the IRS is always a stressful experience, especially when it involves a demand for payment. One such notice that requires immediate attention is IRS Letter 3228 (LT 39). This letter typically informs taxpayers of unpaid balances and requests that payment be made within 10 days. The IRS takes unpaid taxes seriously, and failing to respond to this notice can have significant repercussions on your finances.In this guide, we will explain what IRS Letter 3228 (LT 39) is, how it affects you, and what steps you should take after receiving it. By understanding the implications of this letter and knowing how to respond, you can protect your financial standing and avoid further complications.
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What is IRS Letter 3228 (LT 39)?
IRS Letter 3228 (LT 39) is an official notice sent by the IRS when a taxpayer has an outstanding tax balance that needs to be addressed. The letter serves as a request to pay the balance due within 10 days using the envelope provided. Failure to pay the owed amount within this time frame can result in additional penalties, interest, and potentially more aggressive enforcement actions, such as federal tax liens or asset levies.
While this letter is a serious matter, it also provides an opportunity to resolve your tax debt before the situation escalates. The IRS prefers voluntary compliance, and paying the balance promptly or contacting them to discuss payment options can prevent more severe consequences.
Why did you receive IRS Letter 3228 (LT 39)?
The IRS sends this letter to taxpayers who have unpaid tax balances, usually after other attempts to collect have not been successful. This letter can be triggered by various circumstances, including:
- Failure to pay the full amount due on your tax return.
- Missed installment agreement payments.
- Additional taxes assessed due to an audit or amended return.
In some cases, IRS Letter 3228 may be sent if the IRS has not received your payment in full by the due date, even if you have been making partial payments. It’s important to carefully review the letter to understand exactly what the IRS is requesting and why.
Immediate actions to take after receiving the letter
Upon receiving IRS Letter 3228 (LT 39), it is crucial to act promptly. Here are the steps you should follow:
- Read the notice thoroughly: Make sure you understand the details of the tax balance owed and the payment deadline. This will help you determine the best course of action.
- Check for payment options: If the notice provides payment options, such as online payments or installment agreements, consider which option best fits your financial situation.
- Pay the balance due: If possible, pay the full amount by the deadline to avoid further penalties or interest. Use the envelope provided or make an online payment through the IRS website.
- Contact the IRS: If you’re unable to pay the full amount or have questions about the letter, contact the IRS using the toll-free number included in the notice.
Pro tip
Setting up an online IRS account can help you track your notices, payments, and installment agreements more efficiently.
How to respond to IRS Letter 3228 (LT 39)
Step-by-step guide to responding
The key to handling IRS Letter 3228 is to respond quickly and appropriately. Here is a step-by-step guide on how to respond:
- Verify the details: First, ensure that the amount stated in the letter matches your records. Compare the balance to your tax filings and any payments you’ve already made.
- Make a payment: If you can afford to pay the balance, do so by using the provided payment instructions. The IRS accepts payments by mail, through the IRS website, or via the Electronic Federal Tax Payment System (EFTPS).
- Set up a payment plan: If you are unable to pay the full balance, consider setting up an installment agreement with the IRS. This allows you to pay the debt in smaller monthly payments.
- Request an extension: In certain cases, you can request a short-term extension if you need more time to pay the balance. The IRS may grant an additional 120 days to pay, but interest and penalties will continue to accrue.
What happens if you cannot pay the balance?
If you cannot pay the balance stated in IRS Letter 3228 (LT 39), it is important to contact the IRS to explore your options. Failing to pay or ignoring the letter can lead to more serious actions such as:
- Federal Tax Lien: The IRS may place a lien on your property, which gives them legal claim over your assets until the debt is paid.
- Wage garnishment: The IRS can take a portion of your wages directly from your employer if the debt remains unpaid.
- Bank account levy: The IRS may freeze or seize funds from your bank accounts to cover the outstanding balance.
If you are facing financial hardship, you may qualify for an “Offer in Compromise” (OIC), which allows you to settle your tax debt for less than the full amount owed. It is recommended to consult a tax professional to determine if this option is right for you.
Pro tip
If you’re struggling with tax payments, contact the IRS as soon as possible to explore payment plans or an Offer in Compromise.
Potential consequences of ignoring IRS Letter 3228 (LT 39)
Ignoring IRS Letter 3228 (LT 39) can lead to serious consequences. The IRS has several enforcement tools at its disposal to collect unpaid taxes, and delaying your response can result in:
- Increased penalties and interest: The longer the balance remains unpaid, the more penalties and interest you will accumulate.
- Federal tax lien: The IRS can place a lien on your property, including real estate and personal assets. This lien is a public record and can affect your credit score.
- Asset seizure: The IRS may levy your bank accounts, garnish wages, or seize property to satisfy the tax debt.
To avoid these outcomes, it’s essential to communicate with the IRS and address the issue as soon as possible.
Pro tip
Always respond promptly to IRS letters to avoid additional penalties or legal actions such as tax liens or levies.
How to prevent future IRS notices
To avoid receiving future IRS notices like Letter 3228 (LT 39), it’s important to stay proactive about your tax obligations. Here are some steps you can take to minimize the likelihood of receiving IRS collection letters:
- File your taxes on time: Make sure to file your tax returns by the due date, even if you cannot pay the full amount owed.
- Pay as much as you can: If you can’t pay the full balance, pay as much as you can by the due date to reduce penalties and interest.
- Set up an installment agreement: If you know that you’ll have difficulty paying your taxes, set up an installment agreement with the IRS before your balance becomes delinquent.
- Keep records: Maintain detailed records of all tax filings, payments, and IRS correspondence. This will help you resolve any discrepancies quickly.
How to avoid tax penalties
Avoiding tax penalties requires careful planning and timely action. Here are a few strategies to avoid unnecessary penalties:
- Use withholding adjustments: Adjust your W-4 to ensure that your employer withholds the correct amount of tax from your paycheck.
- Make estimated tax payments: If you’re self-employed or receive income that’s not subject to withholding, make quarterly estimated tax payments to avoid underpayment penalties.
- Apply for a payment plan: If you owe a balance and can’t pay it in full, set up an installment agreement to avoid penalties for late payment.
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Frequently asked questions
What should I do if I receive multiple IRS letters?
If you receive multiple IRS letters, it’s important to carefully review each one, as they may address different issues. For example, one letter could request payment, while another might notify you of a potential lien. Respond to each letter as needed. If you’re unsure how to proceed, contacting the IRS or consulting with a tax professional is recommended.
Can I request more time to pay the balance due on IRS Letter 3228 (LT 39)?
Yes, if you are unable to pay the balance within the 10-day window, you can request additional time from the IRS. The IRS may offer you up to 120 days to pay the balance in full. If you still need more time, consider requesting an installment agreement or exploring other payment options such as an Offer in Compromise.
Will IRS Letter 3228 (LT 39) affect my credit score?
IRS Letter 3228 (LT 39) itself does not directly affect your credit score. However, if you fail to pay the balance and the IRS files a federal tax lien, this could appear on your credit report and negatively impact your credit score. Resolving the debt before it escalates to a lien can help protect your credit.
Can the IRS take my property if I ignore the letter?
Yes, if you ignore IRS Letter 3228 (LT 39) and fail to pay the balance or set up a payment plan, the IRS can take further action to collect the debt. This may include filing a federal tax lien, garnishing your wages, or even seizing your property or bank accounts through a levy.
What should I do if I disagree with the amount owed?
If you believe the amount listed on IRS Letter 3228 (LT 39) is incorrect, you can dispute the balance. Contact the IRS to review your account and provide supporting documentation to prove your case. You may also request an appeal if you feel the debt has been miscalculated or assessed in error.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- IRS Letter 3228 (LT 39) requests payment of an outstanding tax balance within 10 days. Failure to respond could lead to severe penalties.
- Options for dealing with this letter include paying the balance, setting up an installment agreement, or negotiating a settlement through an Offer in Compromise.
- Ignoring the letter can result in federal tax liens, wage garnishment, or bank account levies.
- Maintaining detailed records of all IRS communications and promptly addressing any outstanding balances will help avoid future collection letters.
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