Hundreds of thousands of current and retired federal employees recently received a new wave of IRS notices prompting urgent resolution of their outstanding tax liabilities, a move that a former Tax Court attorney says comes at an interesting time as the administration looks to continue reducing the size of the government workforce.
LT36 Notices
“According to our records, you are one of approximately 525,000 current or retired federal employees who are noncompliant with respect to their federal tax obligations as of April 30, 2025,” is the first line of a partially redacted IRS Notice LT36 reviewed by Checkpoint, dated June 23.
Speaking with Checkpoint in an interview July 18, Frost Law Director Jessica Marine said her practice saw a small handful of the new notices reach clients the third week of June. Another 20 came in the week after.
The one-page notice does not disclose the amount of tax owed or other details on what type of tax deficiency is at issue. It does tell recipients that government employees should “lead by example” and pay their balances “promptly.” Should the taxpayer not “timely” comply, the notice promises that the IRS “will follow up with you directly.”