Letter 3876 is a Rescission of a Collection Due Process Levy Notice. The IRS has withdrawn an earlier Final Notice of Intent to Levy (such as Letter 1058, CP90, or LT11). The CDP clock that was running stops. If a CDP request was already filed, it is treated as moot. The levy threat associated with the rescinded notice is withdrawn.
Why Rescission Happens
The IRS rescinds a final notice when it discovers that the notice was issued in error, when the underlying balance has been resolved (through payment, abatement, or an agreement), when a procedural defect in the notice means it would not survive judicial scrutiny, or when internal controls flag that the notice should not have gone out. Rescission is the clean fix: the notice is withdrawn as if it had never been issued.
What Rescission Does Not Do
Rescission removes the specific levy warning in the rescinded notice. It does not forgive the underlying tax, suspend the Collection Statute Expiration Date, or guarantee that another final notice will not issue later. If the balance is still owed and no resolution is in place, expect another CP90, Letter 1058, or LT11 to arrive at some point.
Use the Pause Productively
If Letter 3876 arrives because the balance was resolved, confirm with the IRS that the account is in zero-balance status and that any lien will be released. If it arrives because the IRS caught a procedural defect, use the pause before a new notice issues to put a real resolution in place. An installment agreement, offer in compromise, or currently not collectible status set up during the quiet period eliminates the need to deal with the next final notice at all.
If you received Letter 3876 and want to make sure the next notice does not catch you by surprise, call us at (813) 229-7100.