Something unusual just happened.
The IRS quietly launched a new round of LT36 notices, and if you’re a current or former federal employee, there’s a good chance you (or someone you know) just got one.
Here’s what that means—and why it could be a bigger deal than just another tax bill.
What’s in the LT36 Notice?
The notice starts like this:
“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.”
That’s it. No balance listed. No context. Just a vague warning about noncompliance.
But here’s the kicker: It also includes language like “lead by example” and urges you to “promptly” pay. And if you don’t? The IRS “will follow up with you directly.”
They give you a QR code to log into your IRS account, view your balance, and either pay or start a payment plan.
Why Now? The Timing Feels… Strategic
Jessica Marine, a tax attorney who just left the federal workforce this spring, raised the same eyebrows we are.
This new version of the LT36 showed up less than a month after the Office of Personnel Management (OPM) rolled out new rules to fast-track dismissals.
Coincidence?
Maybe. But when you combine those two things, it feels like something more coordinated.
Marine even said outright: “This could be a stronger push to enforce action against federal employees—up to and including termination.”
Meet FERDI: The IRS’s Silent Collection Force
This isn’t a random crackdown. It’s part of something called FERDI (Federal Employee/Retiree Delinquency Initiative).
This IRS unit has one job: Collect past-due taxes from federal workers.
And unlike the rest of us, government employees don’t always get the standard collection protections. FERDI can dock 15% of your pay or pension—no hearing, no notice.
If you think being in a payment plan protects you, think again. Some of Marine’s clients who were already paying still got hit with the notice.
Here’s What You Should Do Next
If you received LT36:
- Don’t ignore it.
- Don’t just assume your payment plan protects you.
- Get legal help now.
Even if you’re not behind on taxes anymore, this notice could trigger something bigger. There’s enough ambiguity in how OPM and IRS policies overlap to raise serious concerns.
Marine said it best: “There’s a lot of unknowns around this.”
Final Thought
This feels like more than a tax notice. It feels like a pretext.
If the administration is trying to quietly shrink the federal workforce, targeting tax issues could be the first domino.
If you’re in that world—retired or active duty—make sure you’re protected. If you help with this, give us a call. We can help.
