What is IRS Notice LT36, and why is it important? This notice is the IRS’s way of telling current or retired federal employees: “You’ve got unpaid taxes, and it’s time to act.” With over half a million government workers flagged for tax noncompliance, the stakes are high. If you’re in that group, understanding what LT36 means and how to respond quickly could protect your paycheck, your benefits, and your reputation.

The IRS Notice LT36 is a notice the IRS is sending to federal employees who are noncompliant with their federal tax obligations. Federal employees generally include civilians employed by the United States government. According to the notice, the IRS’s records indicate that there are about 525,000 current or retired federal employees who have federal tax obligations and will be receiving IRS Notice LT36 for each tax period requiring attention.

All citizens of the United States are subject to maintaining compliance with their tax obligations at the Federal, State and local levels. Federal employees are held to an even higher standard of compliance, especially for enforcement purposes, because they have been mandated by Congress to serve as stewards of the law. Under C.F.R. §2635, federal employees are obligated to act in good faith to satisfy their obligations as citizens, including all just financial obligations. This includes, but may not be limited to, compliance with Federal, State, or local taxes required by law.

There are a couple of basic requirements that must be met to be considered compliant with tax obligations. These are:

1. File your tax return by the due date.
2. Pay your tax by the payment deadline.

The filing and payment due dates for most individual taxpayers, including federal employees, is generally April 15^th of each year, but an request for an extension to file may be submitted. As long as an extension to file is submitted by April 15^th, an extension of time to file is granted and the new filing deadline becomes October 15^th. There are several situations that could impact and adjust these deadlines, and it is important to know if any apply to your situation. Failure to file your tax return by the deadline may result in assessment of penalties and interest.

When you submit a request for an extension of time to file your tax return, that does not extend the deadline to pay your taxes. The payment due date, regardless of extension, remains April 15^th. As with the filing deadlines, there are several situations that may impact and adjust the payment deadline, and it is important to know if there are any special circumstances that apply to your situation. Failure to pay by the deadline may result in assessment of penalties and interest.

If you are a current or retired federal employee who is facing problems with their federal tax obligations, it is important to read the notices carefully, know your rights, and understand the options available for handling the problems. There are options available to help you handle these tax obligations and you do not have to deal with them on your own.

For help navigating your tax problems and negotiating a resolution, contact the experienced tax team at the Business Law Group. Our team is ready to help you by taking the burden of dealing with the IRS and helping you navigate your tax problem to find a resolution tailored to your situation. Call us at (719) 355-8840 or email info@businesslawgroup.us to get started today.