IRS LT36 Notice & Federal Employee Tax Levies
Understand What the LT36 Notice Means for You and How to Protect Your Paycheck
Resolve IRS LT36 Notices & Wage Levies for Federal Employees with Lothamer
Receiving an LT36 Notice from the IRS is more than just another tax warning; it’s a direct indication that your federal wages or benefits may soon be on the line. Notice LT36 is an official IRS notice specifically targeting current federal employees, retired federal employees, government employees, and federal contractors who may be behind on their tax obligations. The IRS’s collection efforts, backed by the authority of federal agencies and the federal government, can include wage garnishments and other enforcement actions to ensure tax compliance. For federal employees, this can result in up to 15% of your pay being automatically seized before it ever reaches your bank account. If you’ve received this notice, immediate action is not only recommended, it’s essential.
At Lothamer Tax Resolution, we specialize in helping federal employees and federal contractors respond to IRS Notices like LT36 and stop wage levies before they begin. Maintaining tax compliance and fulfilling your tax obligations is critical for protecting your career, security clearance, and financial well-being. With decades of experience and a team of licensed tax professionals, we know how to step in quickly, communicate with the IRS on your behalf, and prevent unnecessary financial disruption.
What is an IRS Notice LT36?
The IRS Notice LT36 is sent to federal employees and retirees with unresolved tax debts. The IRS notice LT36 is often a one-page notice, and in some cases, you may receive a partially redacted IRS notice. This notice is generated by an automated system that identifies individuals with outstanding tax liabilities. The notice instructs taxpayers on how to resolve their outstanding tax liabilities, including providing the due date for payment to avoid enforcement actions.
The notice may include a QR code that directs recipients to online IRS accounts and the login and signup pages. Here, you can view your balance and tax returns, see tax returns filed, and pay online for added convenience and prompt resolution.
It serves as a final warning before the government begins taking automated action through the Federal Payment Levy Program (FPLP). Under this program, the IRS can intercept up to 15% of your salary, Social Security, OPM retirement, or other federal disbursements without needing your consent or a court order.
By the time this notice arrives, the IRS has likely already attempted to contact you through several earlier letters. The LT36 is their notice of intent to collect, and unless you respond promptly, the levies will begin automatically.
The LT36 Notice is part of the federal employee retiree delinquency and employee retiree delinquency initiative (FERDI), which specifically targets outstanding tax liabilities among federal employees and retirees.
If your business is experiencing payroll tax problems or reclassification of workers from independent contractors to employees, contact us as soon as possible.
Why You're Receiving This Notice
If you’re a federal employee who has fallen behind on tax payments and not responded to previous IRS notices, your account may have been flagged for enforced collection through the FPLP. The LT36 Notice is how the IRS informs you that this process is about to begin. This notice affects not only federal employees, but also those with federal employment status, including military personnel, military retirees, and individuals associated with Veterans Affairs. The notice may impact federal pensions, pension benefits, and social security benefits, as these can be subject to levy or garnishment. The LT36 Notice is triggered by tax law requirements and is issued when there is a tax deficiency, unpaid taxes, or unpaid tax debt. It is related to an outstanding tax issue, tax non-compliance, and outstanding tax liabilities, making it crucial to fulfill your federal tax obligations. Filing a tax return and ensuring all tax returns filed are accurate is essential to avoid tax owed and tax liabilities. This type of levy is unique because it targets your federal income directly, whether it’s a paycheck, retirement benefit, or contractor payment, making it both aggressive and difficult to reverse once it’s in motion.
What Happens If You Do Nothing About Outstanding Tax Liabilities
Ignoring the LT36 Notice comes with serious consequences. The IRS will initiate automatic deductions from your federal payments, which can cause immediate financial strain. You may start seeing a reduced paycheck, delayed retirement payments, or withheld government disbursements, all without any further warning. Ignoring the notice can also lead to tax liens, loss of security clearance, and even actions to terminate employees. These consequences can damage your professional reputation and limit future career opportunities. Federal employees are required to fulfill their just financial obligations and financial obligations, but if you are experiencing financial hardship, the IRS may consider relief options. Over time, this can lead to greater debt, mounting penalties, and long-term damage to your financial well-being.
Fortunately, there’s still time to intervene before the levy begins, but your window to act is limited.
How Lothamer Stops the IRS in Its Tracks
This is where Lothamer Tax Resolution comes in. We act fast to contact the IRS, review your account, and determine the best course of action to stop the levy. Whether it’s negotiating a payment plan, including exploring installment agreements as a resolution option, applying for Currently Not Collectible status, or submitting an Offer in Compromise, our tax professionals work to protect your income and resolve your debt in a way that fits your financial reality.
When you partner with Lothamer, you don’t have to face the IRS alone. We’ve helped thousands of people get out from under the pressure of collection notices and wage levies, and we’re ready to help you do the same. Working with a tax professional is essential to ensure your tax matter is handled correctly, and in complex cases, it may be necessary to seek legal counsel. Lothamer can help you achieve immediate resolution of your tax matter and assist in correcting misapplied payments if necessary.
Time is Running Out: Let’s Take Control Today
The LT36 Notice is your last opportunity to resolve your tax issue before the IRS starts taking your federal wages. Acting now can save your paycheck, reduce your stress, and get you back on track financially. Lothamer Tax Resolution is ready to advocate for you and stop the levy before it starts.
Schedule your free, confidential consultation today, and let’s take the first step toward protecting what you’ve worked so hard to earn.
Your Roadmap to Resolution Starts Here
Within the first 24–72 hours, we can do more than what most other tax firms do in several weeks.
Step
1
CALL OUR OFFICE To Learn More About Our Process For Getting Same-Day Tax Help
For a reasonable fee, we will contact the IRS and request a Stay on Collection, obtain transcripts for years unfiled, balances due, and income reported to the IRS, and provide you with a consultation within three days with a licensed professional, tax professional, or Enrolled Agent.
Step
2
MEET WITH A LICENSED PROFESSIONAL, OR ENROLLED AGENT, AND GET YOUR ROADMAP TO RESOLUTION
Our meeting with you will be virtual, using our proprietary video conferencing software, performed in the privacy of your office, home, or vehicle, with a licensed professional, tax professional, or Enrolled Agent to learn about our findings, discuss your options, and provide you with a plan to resolve your tax problem. At this meeting, we’ll be able to provide you with an estimated cost for the services required to implement the plan.
Step
3
Could you make the plan clear? Developed in Step 2
Upon accepting the Terms and Conditions outlined in our service agreement in Step 2, we will immediately begin working to resolve your tax problem. We will set you up in our eResolution Client Portal, providing you with access to critical deadlines and next steps, allowing you to view the progress of your case.
DID YOU KNOW: Payroll taxes carry the potential for personal liability for officers, bookkeepers, and anyone with check writing authority. Let us help you limit the scope of who may be personally responsible for unpaid payroll taxes.
It Pays To Get Current!
FAQs:
The IRS LT36 Notice is an IRS notice, specifically known as IRS Notice LT36, sent to federal employees or retirees with unresolved tax debt. It is part of the Retiree Delinquency Initiative (FERDI), a program targeting tax compliance among federal employees and retirees. This initiative currently affects approximately 525,000 federal employees. The notice serves as a final warning before the IRS begins automated wage garnishment through the Federal Payment Levy Program. If you received this notice, it’s likely because you owe back taxes and haven’t responded to previous collection attempts.
Yes. Under the Federal Payment Levy Program, the IRS can automatically seize up to 15% of your federal income, whether it’s wages, Social Security, or OPM retirement, without needing a court order. If you’ve received an LT36 Notice, you’re at risk of this action starting soon. Certain notices, like the LT36, instruct taxpayers on how to resolve their outstanding tax issues.
To stop a levy, you need to act quickly and engage with the IRS before the garnishment begins. At Lothamer Tax Resolution, we work directly with the IRS to halt collection activity, establish payment agreements, or pursue other resolution options tailored to your situation. The notice promises further action if you do not respond, so it is important to check for incorrect calculations or if the notice was sent to the wrong taxpayer.
Lothamer has decades of experience helping clients respond to IRS collection notices like the LT36. Our licensed tax professionals will step in immediately to protect your income, negotiate with the IRS, and create a personalized plan to resolve your tax debt, fast and effectively. We can help you address tax issues related to the LT36 Notice and ensure your rights are protected throughout the process.