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