LT24 Notice: The IRS Needs More Information for Your Payment Plan

What LT24 means

The IRS page for this notice says: “We received your payment plan proposal to pay the tax you owe; however, we need more information from you to establish an installment agreement.” An installment agreement is a formal deal to pay the IRS in monthly amounts.

So the IRS has not turned you down, and it has not approved you either. The notice gives you a date to finish the request.

Two ways to finish your payment plan request

The IRS page lists two ways, and you take one of them by the date shown on your notice.

The first is by mail. Complete Form 9465, Installment Agreement Request, and mail it to the address in the “Additional Information” section of your notice.

The second is by phone. Call the number on your notice. The IRS page says to have your income and expense information available when you call, and warns that the IRS “won’t wait on the line while you find your information.” Gather pay stubs, rent or mortgage amounts, utility bills and other monthly costs before you dial.

To see what monthly payment you might qualify for before you call or mail, try the payment plan calculator.

What happens if you do not respond

The IRS page says that if you don’t respond or don’t pay by the date on your notice, the IRS may pursue enforced collection. It names three examples: filing a Notice of Federal Tax Lien, garnishing your wages or other income, and taking money from your bank accounts.

A Notice of Federal Tax Lien is, in the IRS page’s words, “a public notice to your creditors that the government has a right to your interests in your current assets and any assets you acquire after we file the lien.” The page adds that it can affect your ability to get credit.

One limit applies. If part of what you owe is a shared responsibility payment, the penalty the law set for months without qualifying health coverage (IRC 5000A(b)), the IRS page says the law bars the IRS from using liens or levies to collect that part.

What people mistake LT24 for

Some people read LT24 as a denial of their payment plan. It is not: the IRS page says the IRS needs more information to set up the agreement. Others read it as an approval and start paying under the terms they proposed. Nothing on the IRS page says the IRS accepted those terms, so finish the request by the notice date. A related letter, the LT27, says the IRS still has not received an online payment agreement application and needs your response by the date on the notice, or the account goes back to collections.

And some put LT24 aside because they already applied once. The date on this notice is what counts now.

For practitioners: what to check before the call

Build the financial picture before you call. The IRS page is plain that the IRS will not set up the agreement without income and expense information and will not hold the line while the caller looks for it.

Check whether a simpler route fits. The IRS payment plan page lists several kinds of plans with different setup fees, lower for a direct debit plan, plus fee waivers or reimbursement for low-income individuals. If the client can pay in full instead, the LT24 page suggests paying the balance to stop more penalties and interest. If the client cannot afford any monthly payment, test currently not collectible status, a hold on collection, with the CNC calculator before the call.

Watch the date on the notice. The IRS page ties enforced collection to a missed response or payment date, and lists a Notice of Federal Tax Lien among the first actions.

Common Questions