The LT19 provides an updated balance for your tax account. It shows the current amount owed including tax, penalties, and interest calculated to the notice date. This may follow a payment, an adjustment, or a periodic account review.
Verify the Balance
Compare the LT19 balance to your records. If you've made payments that aren't reflected, contact the IRS with proof. If the balance seems higher than expected, the increase is likely from accrued penalties and interest. The failure-to-pay penalty adds 0.5% per month and interest compounds daily.
Use This as a Decision Point
Every balance update is an opportunity to evaluate your resolution options. Can you pay in full now? Should you set up a payment plan? Has your financial situation changed enough to qualify for an offer in compromise or currently not collectible status? The balance amount and the remaining time on your collection statute (CSED) should drive your strategy.
If you want help evaluating your options, call us at (813) 229-7100.