The LT26 confirms the IRS applied an overpayment from one tax period to a balance due in another. This is the LT-series version of the offset notices (CP49, CP39, CP141). Your refund or overpayment was used to reduce a debt in another tax year.
Verify the Application
Confirm the overpayment amount, the originating period, and the receiving period are all correct. If the balance in the receiving period was wrong, or if the overpayment was supposed to be refunded instead of applied, contact the IRS to dispute the offset.
If you filed jointly and the offset was for your spouse's debt, file Form 8379 (Injured Spouse Allocation) to recover your share.
If the offset doesn't look right, call us at (813) 229-7100.