IRS CP 259 Notice

Did you receive an IRS CP 259 notice? What It Means & What to Do


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Understanding IRS CP 259 Notice

A business is typically expected to make more money than a single person and owe more in terms of taxes. Owners of businesses should therefore understand the need to keep their books in order and to pay the correct amount of dues to the government in a timely manner. Failure to do so can result in swift and rigorous collection efforts, and receiving IRS CP 259 is merely the beginning.

What is a IRS CP 259 Notice?

IRS CP 259 Notice is sent if the IRS has no record of you filing a business tax return for the most recent tax year. It could be that you filed late, have no intention of filing at all, or did file as required but the return was not received/noted for some reason. The IRS intends to hold you responsible for your actions or lack thereof, so it is best to address this notice as soon as you receive it.

What Should I do if I Receive a IRS CP 259 Notice?

IRS CP 259 requires you to respond immediately whether by submitting your business return or by proving that you already did. The notice also includes a response form on which you are to state why you failed to file. If you have already filed then you should explain this on the response form and provide the IRS with a signed and dated copy of the return.

Bear in mind that you may not need to file a return at all. In fact, the IRS does not require you to file a return for a tax period if your business did not generate any revenues during the specific time, but you still need to respond appropriately to the notice. Failure to do so can result in interests and penalties, liens, levies or other strict tax sanctions that could ruin you or your business.

How Much Time do I Have to Respond?

The longer you delay your response to the IRS, the more difficult it will be for you to resume your good standing with them. You are therefore recommended to act immediately since a IRS CP 259 notice means that you are already well past the payment due date. Furthermore, provided the notice gets to you on time, you will be given no more than two weeks to file the requested return or dispute their findings. The due date will be stated in the notice.

What Action Will the IRS Take if I Don’t Pay?

The IRS will file a substitute return on your behalf should you fail to respond by the deadline indicated in the notice. Such a return will use third-party data, take no account of deductions you may be entitled to, and will inevitably cost you more. You will then be asked to settle the amount along with the incurred interest and late payment charges.

Received a CP 259? Speak with an OnCall Tax Consultant for Help

Receiving IRS CP 259 Notice can either spell trouble or just be an inconvenience. Whatever the case, talk to a member of the OnCall team to see how to quickly resolve the issue and move on to what is important. Contact us via our interactive Contact Form or dial 1-888-292-7882 now.