What happens if you receive a large cash payment that changes your tax implications dramatically for the year? You may receive a Form 8300, the IRS’s way of informing you that your tax for the year is radically different. The filing of Form 8300 sets off a chain of events that you should be prepared for.
You open your mailbox and see a little sliver of something in that signature yellow—you hope, you dread. Is it one? You pull it out, and lo and behold, a certified letter. But does it mean bad news? Before the panic sets in, let’s clear the air about certified letters. It turns out there are many different reasons you may be receiving one.
The question doesn’t have a simple yes or no answer. Passport denial is a lever the IRS can pull if they’ve found you particularly uncooperative in paying your taxes.
This article aims to demystify Notice LT38, explaining its purpose, how to respond, and the potential consequences of inaction.