ST39 Notice: What It Is and How to Handle It
Summary:
The ST39 IRS Notice informs taxpayers of overdue balances and missing tax returns. It’s a legally required communication that advises you to take action by paying your balance or addressing any missing filings. Ignoring this notice can result in penalties, interest, and enforced collection actions, including wage garnishment or asset liens. This article explains how to handle the notice, payment options, and ways to resolve the situation.
Receiving an ST39 IRS Notice can be alarming, but it is crucial to understand that it is not an insurmountable issue. This notice is sent by the IRS to remind taxpayers of overdue balances or missing returns. Ignoring it may lead to more severe consequences, including penalties, interest, or even wage garnishments. The key is to respond promptly and understand your options for addressing the balance due or filing any missing returns. In this article, we’ll guide you through the steps to take, payment options, and what you can expect if you don’t act on the notice.
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What is the ST39 IRS notice?
The ST39 IRS Notice is a formal letter issued by the Internal Revenue Service (IRS) to notify taxpayers of an overdue balance or missing tax returns. The notice serves as a reminder that action is required to settle the outstanding balance or file the necessary tax returns. The IRS is legally required to inform you in writing about these issues before pursuing any collection actions.
Struggling with IRS notices? If you’ve received an IRS letter and aren’t sure how to handle it, you might want to explore professional tax relief options. Optima Tax Relief has helped thousands of people resolve their tax issues and get back on track with the IRS. Learn more about how they can assist you with your situation.
Why does the IRS send the ST39 notice?
The IRS sends the ST39 Notice for two primary reasons:
- Overdue balance: If you have an unpaid tax debt, the notice will indicate the amount you owe, including any applicable penalties and interest.
- Missing returns: If you failed to file one or more tax returns, the notice will specify which tax years are affected and request that you submit those returns as soon as possible.
The IRS will continue to send reminders if no action is taken, and unresolved issues can escalate into more serious collection efforts.
Pro Tip
Set up IRS account alerts online to get real-time notifications on any changes to your tax return or account. This helps you stay updated on adjustments and due dates.
What should you do when you receive an ST39 IRS Notice?
Receiving the ST39 Notice requires prompt action. Here’s what you need to do:
- Read the notice carefully: Understand the details, including the balance due or missing returns, and the deadline for action.
- Verify your records: Check if you have already filed the missing returns or paid the amount listed on the notice. If so, contact the IRS to confirm that your account reflects these actions.
- Address the overdue balance: If you owe money, pay it by the due date to avoid further penalties and interest. If you cannot pay the full amount, you have options (explained below).
- File missing returns: If the notice mentions unfiled returns, make sure to file them as soon as possible to prevent additional penalties.
Taking these steps quickly is essential to minimize the financial consequences and avoid more aggressive IRS actions.
Payment options for ST39 IRS notice
If you cannot pay your balance in full, the IRS offers several payment options to help you manage your debt.
Full payment
The simplest way to resolve your ST39 Notice is to pay the entire amount due by the deadline specified in the notice. This will stop additional interest and penalties from accruing on your account.
Payment plan options
If you cannot pay the full amount at once, the IRS offers various installment plans, including:
- Short-term payment plan: If you owe less than $10,000 and can pay off the debt within 120 days, this option is relatively easy to arrange. You can apply online via the IRS website.
- Long-term installment agreement: For debts under $50,000, you can set up a longer-term payment plan, typically requiring monthly payments. You can apply through the IRS’s Online Payment Agreement tool or by submitting a request by mail.
- Partial payment installment agreement: If you can’t afford the monthly payments for a standard plan, the IRS may allow a partial payment plan where you pay less each month, though interest and penalties will continue to accrue on the remaining balance.
Offer in compromise
An Offer in Compromise allows you to settle your tax debt for less than the full amount owed if paying in full would cause financial hardship. This is an option for those who qualify based on their financial situation. You can use the IRS’s Offer in Compromise Pre-Qualifier tool to see if you meet the criteria.
Currently not collectible status
In some cases, the IRS may determine that you cannot pay any of your tax debt due to financial hardship. In such cases, your account could be marked as Currently Not Collectible, temporarily halting collection efforts. However, interest and penalties will continue to accrue, and the IRS may still file a Notice of Federal Tax Lien.
Pro Tip
Keep detailed records of all your tax filings and payments. This documentation will be invaluable if there are discrepancies or issues with your account.
Penalties and interest
If you delay paying your balance or ignore the notice, the IRS will impose penalties and interest. Here’s what you can expect:
Penalties
The IRS charges two main types of penalties:
- Failure-to-file penalty: This penalty applies if you do not file your return by the due date. It can be as high as 5% of the unpaid taxes for each month the return is late, up to 25% of the unpaid balance.
- Failure-to-pay penalty: This penalty applies when you don’t pay your taxes by the due date. Generally, it is 0.5% of the unpaid taxes for each month the balance remains unpaid, up to 25% of the total amount due.
Interest
Interest on the total amount owed is compounded daily, starting from the original tax return due date. This means the longer you wait to pay, the more the amount owed will increase over time. Interest rates can vary, but they are determined by federal guidelines.
What happens if I don’t respond to the ST39 notice?
Ignoring an ST39 Notice can lead to serious consequences. If you fail to respond or pay the overdue balance, the IRS may take the following actions:
- Enforced collection actions: The IRS may initiate enforced collection actions such as wage garnishment, placing liens on your assets, or seizing funds from your bank accounts.
- Filing of a federal tax lien: A lien is a public notice to creditors that the government has a legal right to your property and future assets if the debt is not paid.
- Passport issues: If your tax debt exceeds $62,000, the IRS can notify the U.S. Department of State, which may deny or revoke your passport until the debt is settled.
How to file missing tax returns
If your ST39 Notice indicates that you have unfiled tax returns, you must file them as soon as possible. Follow these steps:
- Identify the missing returns by reviewing the tax years listed on the notice.
- Use the IRS’s online filing portal to complete and file the returns, or consult a tax professional for assistance.
- If you’ve already filed the returns but they were not received or processed, resend the returns with confirmation of your previous submission.
Pro Tip
If you cannot pay your balance in full, consider applying for an installment agreement as soon as possible to avoid further penalties.
What to do if you can’t pay the balance in full
If you are unable to pay the full balance listed on your ST39 Notice, consider the following options:
Make a partial payment
Paying a portion of your balance can reduce the amount of interest and penalties charged. Any payment will help lower the overall amount due.
Apply for an installment plan
If you owe less than $50,000, you can apply for a payment plan online or by mail. Installment plans allow you to make smaller, more manageable payments over time.
Request financial hardship status
If paying the amount due would create a financial hardship, you may qualify for the Currently Not Collectible status, temporarily halting collection efforts. Contact the IRS to discuss your options.
How to avoid future ST39 Notices
To avoid receiving future ST39 Notices, make sure to:
- Pay your taxes on time: Meeting deadlines will help you avoid penalties and interest charges.
- File all required tax returns: Even if you don’t owe taxes, failure to file a return can still trigger a notice and penalties.
- Keep good records: Maintain copies of all tax filings and payments to avoid future confusion or delays.
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Frequently asked questions
What should I do if I don’t receive my ST39 notice?
If you do not receive your ST39 Notice but believe you owe taxes or have unfiled returns, it’s essential to check your IRS account online or contact the IRS directly. They can provide information about your tax status and any outstanding issues.
Can I contest the amount owed on the ST39 notice?
Yes, you can contest the amount owed if you believe there is an error. Contact the IRS immediately using the number provided on the notice. Be prepared to present documentation that supports your case and clarify any discrepancies.
How does the IRS determine if I have missing returns?
The IRS compares tax return submissions with their records. If they notice discrepancies or missing filings for specific tax years, they will send an ST39 Notice. They use data from employers and financial institutions to identify required filings.
What happens if I ignore the ST39 notice?
Ignoring the ST39 Notice can lead to severe consequences, including increased penalties, interest, and enforced collection actions like wage garnishment or asset liens. It’s crucial to respond promptly to avoid these issues.
Are there any programs to help taxpayers with outstanding balances?
Yes, the IRS offers various programs, including installment agreements and Offers in Compromise, to help taxpayers manage their outstanding balances. If you are facing financial difficulties, contact the IRS to discuss your eligibility for these programs.
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
- The ST39 IRS Notice serves as a reminder of overdue balances and missing tax returns.
- Act quickly to address the notice to minimize penalties and interest.
- Explore payment options, including full payments, installment plans, and Offers in Compromise.
- Keep accurate records and file all required returns to avoid future notices.
- If you cannot pay the balance, contact the IRS to discuss your options.
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