IRS LT16 Notice — Unfiled Tax Returns
The IRS noticed you didn't file. They're asking — politely, for now.
The notice in plain English.
An LT16 is the IRS's request for unfiled tax returns. It identifies the tax year(s) the IRS believes you should have filed and asks you to file or explain why you didn't have to.
Common triggers.
- The IRS received W-2s, 1099s, or 1098s showing income but no matching return.
- You filed prior years but stopped, and the IRS noticed the gap.
- Self-employment income was reported by a payer with no return on file.
Your response window.
Usually 30 days. After that, the IRS can prepare a Substitute for Return (SFR) — and SFRs almost always overstate your tax because they include no deductions or credits.
What happens next.
- Substitute for Return (SFR) assessed with the highest possible tax.
- Penalties for failure to file (5% per month, up to 25%).
- Loss of refunds: returns more than 3 years old cannot generate a refund.
- Collection action begins on the SFR balance.
Your real options — in plain order.
File the missing returns
Almost always better than letting the IRS file an SFR for you.
File a return to replace an SFR
You can file even after an SFR has been assessed and reduce the balance.
Filing compliance plan
If multiple years are unfiled, sequencing matters. File the most leveraged years first.
Combine with resolution
Once filed, address resulting balances with an IA, CNC, or OIC strategy.
Common mistakes.
- Filing returns in panic without pulling wage & income transcripts first.
- Filing every back year at once when only the IRS-required years matter.
- Ignoring the notice — the SFR that follows is brutal.
Questions about LT16.
How many years back do I need to file?+
IRS policy generally requires the last 6 years to be considered in compliance, though specifics vary. We pull your transcripts to confirm exactly which years are required.
Can I still get a refund on an old unfiled year?+
Only if you file within 3 years of the original due date. After that, the refund is permanently forfeited — file sooner rather than later.
What if I don't have my records?+
Wage & income transcripts from the IRS show what was reported to them — usually enough to reconstruct a defensible return.
Bring the notice. We'll handle it from here.
A 30-minute consultation with an Enrolled Agent is usually enough to know exactly which resolution path fits your situation.