The IRS sends out a CP59 notice when the agency has no record of a taxpayer's previous year's tax return. The notice is to inform a taxpayer that they aren't in compliance and give taxpayers an opportunity to respond.

How a Taxpayer Should Respond to a CP59 Notice

How a taxpayer should respond to a CP59 notice depends on the reason the taxpayer did or did not, file a tax return. 

If a taxpayer already filed their tax return, believes they weren't required to file a return or otherwise thinks the IRS made a mistake in sending the CP59 notice, taxpayers should submit Form 15103, Form 1040 Return Delinquency, to the IRS. On Form 15103, a taxpayer will either provide evidence that they did file a return or explain why they believe they didn't have to file a return.

If a taxpayer didn't file a tax return, they should generally file a return as soon as possible.  

What if a Taxpayer Did File a Tax Return

If a taxpayer filed a tax return and received a CP59 notice, how they should respond depends on the timing. The IRS recommends that if a taxpayer filed their tax return within the past eight weeks before receiving the notice, they shouldn't do anything. 

If it's been more than eight weeks since a taxpayer filed their return when they received the notice, they should fill out Form 15103 and submit it to the IRS. 

What If a Taxpayer Can't Pay Their Outstanding Tax

Paying tax and filing a tax return are related but separate issues. Taxpayers who are unable to pay their tax bill should still submit a tax return. Once a tax return is submitted, the taxpayer can work with the IRS to set up a payment plan. 

Regardless of whether a taxpayer filed their taxes, interests, feels, and penalties accrue on unpaid taxes. In general, the longer a taxpayer waits to resolve the issue, the more they will likely have to pay the IRS. 

If you need help, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.