The first move
File the return. Even a late return with a balance beats a substitute return, which uses no deductions, no credits, and single filing status.
What these letters have in common
A CP59 (or CP63, CP516, CP518 as it escalates) says the IRS shows no return for a year and has information returns suggesting you should have filed. A CP80 says it has credits on the account but no return to apply them to; if you do not file within three years of the due date, the refund is forfeited. A CP2566 says the IRS has computed the tax it thinks you owe based on third-party reporting and will assess it unless you file. A CP3219N is the statutory notice that follows, with a 90-day Tax Court window.
If you filed and the IRS says it did not receive the return, send a signed copy with proof of the original filing. If you were not required to file, say so on the response form and explain why. If you were required to file and did not, file now. Penalties are computed from the original due date, so the cost grows each month.
The substitute for return the IRS prepares is a floor, not a ceiling. Filing your own return after one is issued replaces it and usually lowers the tax.
What to gather
- The notice, with the tax year it names
- Your income documents for that year (W-2, 1099s); the IRS wage and income transcript will list what it has
- Proof of filing if you did file (e-file acknowledgment, certified mail receipt)
- Prior year return for reference
- If you were not required to file: your income figures showing you were under the threshold
How to write back
- Reasonable cause statement: When first-time abatement does not apply, you can ask the IRS to remove a penalty because circumstances beyond your control caused the failure. This statement lays out the facts in the order the IRS reads them.
- Missed deadline explanation: A plain statement of why a return or payment was late, for use with a late return or a penalty relief request.
Notices in this family
| Notice | What it means |
|---|---|
| CP59 | First notice: no return on file for the year and the IRS believes you must file |
| CP63 | Refund held because a prior year return is missing |
| CP80 | Credits on account, no return filed; refund forfeits after three years |
| CP81 | Refund statute about to expire on a year with no return |
| CP88 | Refund held because a prior year return is missing |
| CP080 | Same as CP80 |
| CP081 | Same as CP81 |
| CP259 | Business: no return on file for a required return |
| CP259A to CP259H | Business: specific return type missing (940, 941, 1120, 1065, and others) |
| CP403 | Retirement plan: Form 5500 not received |
| CP406 | Retirement plan: Form 5500 still not received |
| CP515 | Individual: reminder that a return is still missing |
| CP516 | Individual: second reminder that a return is missing |
| CP518 | Individual: final reminder before the IRS prepares a return for you |
| CP615 | Spanish-language CP515 |
| CP616 | Spanish-language CP516 |
| CP618 | Spanish-language CP518 |
| CP2566 | The IRS computed tax from third-party reporting and proposes to assess it |
| CP2566R | Same as CP2566, revised |
| CP3219N | Statutory notice of deficiency for a non-filed year, 90 days to petition Tax Court |
| Letter 5938 | Non-filer correspondence |
When to get help
Multiple missing years, a substitute return already assessed, or income you cannot reconstruct are reasons to get help. A CP3219N is a 90-day clock.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.