The Notice LT16 is mailed to you because there is a balance due (money you owe the IRS) on one of your tax accounts and/or because you have unfiled tax returns due.

You may have seen that the IRS is moving away from paper checks. If you usually receive a tax refund by paper check, you might also be experiencing some confusion about how you will receive your refund this filing season.

If you claim a refund on your 2025 tax return, new rules may affect how the IRS issues the refund if you don’t provide direct deposit information or if your direct deposit is rejected. These changes are part of the IRS effort to modernize payments to and from America’s bank accounts.

Here’s what you need to know to avoid delays and understand your options.

Have you moved since you filed your 2022 tax return? If so, make sure you update your address with the IRS now.

The IRS expects to issue all refunds for individual returns that do not have errors (or other issues that would delay processing) by direct deposit and paper checks. But if you have not received your 2022 tax refund by the end of December, you will need to update your address in order to receive it timely. That’s not the only reason you should keep your address up-to-date.

You received correspondence from the IRS requesting payment for the tax balance owing and the debt remains unpaid.

Since 2002, TAS has been a strong proponent of legislation providing the IRS authority to establish minimum competency standards for return preparers. Both taxpayers and the tax system depend heavily on the ability of return preparers to prepare accurate tax returns. Because the tax code is so complex, the majority of taxpayers pay preparers to complete their returns for them. Unfortunately, many taxpayers have no easy way to determine whether the preparer they are hiring can do the job adequately.

Spoiler Alert: The IRS has ended its practice of automatically assessing penalties at the time of filing for late-filed Forms 3520, Part IV, which deal with reporting foreign gifts and bequests. And…

By the end of the year the IRS will begin reviewing any reasonable cause statement which taxpayers attach to late-filed Forms 3520 and 3520-A for the trust portion of the form before assessing any Section 6677 penalty. This favorable change will reduce unwarranted assessments and relieve burden on taxpayers by giving them the opportunity to explain their situation before the IRS assesses a penalty. TAS has been recommending these changes for years and the IRS listened. IRS Commissioner Danny Werfel announced these changes during the UCLA Extension Tax Controversy Conference.

On December 22, 2025, the IRS announced proposed revisions to its Criminal Voluntary Disclosure Practice (VDP) and opened a 90-day public comment period, ending March 22, 2026. The IRS states that the proposed revisions are intended to “improve its processes” and “further incentivize non-compliant taxpayers to come into compliance.” While these revisions are a meaningful and welcome step forward, additional changes are necessary to make the VDP more effective, increase participation, and truly encourage noncompliant taxpayers to come forward voluntarily. The IRS’s proposed changes are an important acknowledgment that the program needs adjustment. But the key question remains: Will these revisions be enough? I strongly encourage practitioners to submit comments. Your voice matters!

Estimated Tax Credits Discrepancy - We Changed Your Return to Match Your Credits or Payments Posted to Your Account - Balance Due. This notice explains the changes the IRS made and provides a calculation of the amount you owe including penalties and interest.  

This is part 3 of my blog series addressing international reporting requirements. Part 1 addressed the U.S. Tax Court’s decision in Farhy v. Commissioner and the need to make Chapter 61 international information return penalties subject to deficiency procedures.

In my previous blog post, we discussed a combination of the nearly 30 million 2020 tax returns requiring manual processing, the backlog of unprocessed 2019 paper tax returns, congressional mandates to issue economic impact payments (EIPs) and provide other relief to taxpayers during the pandemic, IRS limited resources, and technology issues that have contributed to more and longer refund delays.

The Taxpayer Advocate Service (TAS) is pleased to announce that the UCLA Extension Tax Controversy Institute has selected National Taxpayer Advocate Erin M. Collins to receive the Bruce I. Hochman Award. The award recognizes Collins’ outstanding proficiency in the field of tax law and her contributions as a dynamic leader.