NOTICE LT26

IRS Notices

Notice LT26 is a letter sent by the Internal Revenue Service (IRS) to taxpayers who have failed to file one or more tax returns. The letter warns the taxpayer that they have 10 days to file the return, or the IRS will file a substitute for return (SFR) on their behalf. That means that the IRS will file a return for you based on the worst-case scenario.

Reasons why it happened:

There are a few reasons why you might receive Notice LT26:

You did not file a tax return for the tax year shown on the notice.
You filed a tax return, but the IRS did not receive it by the due date.
You filed a tax return, but it was incomplete or inaccurate.
You failed to respond to previous notices from the IRS regarding your unfiled tax return.

Options for responding:

If you receive Notice LT26, you should take the following steps:

Read the notice carefully to understand what the IRS is asking for.
If you have already filed a tax return, call the IRS at the number on the notice to make sure they received it.
If you have not yet filed a tax return, you should file it immediately. You can do this online, through a tax preparer, or by mail.
If you cannot pay your taxes in full, you should contact the IRS to discuss payment options.

What happens if I ignore it:

If you ignore Notice LT26, the IRS may take further action, such as:

Filing a substitute return on your behalf: The IRS can use the information it has on your income to file a tax return for you, even if you do not file one yourself. This is known as a substitute return.
Imposing penalties: The IRS can impose a penalty of 5% per month, up to a maximum of 25%, for failing to file a tax return on time. The IRS can also impose a penalty of 0.5% per month, up to a maximum of 25%, for failing to pay taxes on time.
Offsetting your refund: If you owe taxes, the IRS can offset your tax refund to pay the debt.
Seizing your property: In rare cases, the IRS can seize your property to pay a tax debt.

How to avoid it in the future:

File your tax return on time or request an extension if needed.
Make sure your tax return is complete and accurate.
Respond to any notices you receive from the IRS right away.

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