What the notice means
The IRS CP59 page says: “We have no record that you filed your prior year personal tax return.” The instruction is to file immediately or explain why no return is required. The CP59 is not a bill and does not propose tax; it is a request for the return.
IRM 5.19.2 calls these return delinquency (RD) notices. The CP59 and its CP759 counterpart are the first notice, and the RD notices “inform the taxpayer the IRS can prepare a substitute return, if a return is not filed” (IRM 5.19.2.6.4.3). That authority is IRC 6020(b): if a person fails to file, the IRS “shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.”
Why the client got it
IRM 5.19.2.3 describes case creation: the program “identifies taxpayers who have not filed a return but potential income/data is available and reported to the IRS via ‘Information Return Masterfile’ (IRMF) that meets certain case selection criteria.” It also identifies stop-filers who filed the previous year but not the next. Modules selected for a tax year receive a CP59 or CP759.
Common reasons a filed return is not on record: it was rejected electronically and never refiled, the name, SSN or tax year on the return does not match the notice, or the return was filed recently and has not posted. The IRS page says no action is needed if the return was filed within the last eight weeks.
Two softer notices exist. IRM 5.19.2.9 describes the CP59R reminder and CP59SN soft notice sent to some first-time delinquents and taxpayers with credits or possible overpayments, before the main selection cycles. Those are early outreach, not the formal RD notice.
Deadlines and what happens if they pass
| Step | Timing | Source |
|---|---|---|
| CP59 (first RD notice) | Module enters notice status 02 | IRM 5.19.2.6.1.1 |
| CP518 (final RD notice) | Generally if the return does not post or the case is not closed within 8 weeks of the CP59 | IRM 5.19.2.3 |
| TDI status 03 | If not closed within 6 weeks of the CP518 | IRM 5.19.2.3 |
| ACS or ASFR | Unresolved cases may be considered for either | IRM 5.19.2.3; IRM 5.19.2.6.4.3 |
IRM 5.19.2.6.1.1 summarizes it: a final RD notice (CP 518) is issued 8 cycles after the first, “and 6 cycles after that, (14 cycles after the first RD notice) the module goes to TDI Status 03.” Some cases follow a different path: primary code B cases get a CP59 and CP516 and stay in notice status (IRM 5.19.2.3).
The money clocks run too. The IRS page warns that not filing may forfeit a refund or credits because of strict claim time limits, and that penalties and interest accrue on any balance. See the failure to file penalty.
How to respond
- Check the notice details. The IRS page says to confirm the name, SSN or TIN and tax year match the return, and to check that the return was not rejected.
- Pull the wage and income transcript for the year to see the information returns the IRS has, and the account transcript to see whether any return posted. See transcripts for practitioners.
- If the return was filed more than eight weeks ago, the IRS page says to mail a signed and dated copy.
- If no return is required, the IRS page says to complete and mail or fax Form 15103, Form 1040 Return Delinquency, or submit it through the IRS Online Account.
- If the return is due, prepare and file it. The IRS page says returns for the last two years can be e-filed through a provider that supports prior-year filing; otherwise mail it as the notice directs. If the client has an IP PIN, it must be on the return.
- If the client also has other unfiled years, scope them now. IRM 5.1.11.7.1 says “Enforcement of filing requirements will normally be pursued for a six year period,” while also noting the taxpayer may file for all open periods.
- If a balance results, plan the payment at the same time (see installment agreements).
IRM 5.19.2.6.4.3 tells employees how to answer a taxpayer who asks the IRS to go ahead and prepare the return: “This program uses the highest tax rates with no deductions allowed.” The same note says interest and penalties accrue from the original due date until the substitute return is processed and the account is paid.
What the IRS does next
If the return posts, the RD module closes. If not, the CP518 issues and the module moves to TDI status 03, where it can be worked by the Automated Collection System (which may send an LT16) or assigned to the Automated Substitute for Return program. IRM 5.19.2.6.4.3 says the ASFR program targets non-filers “for whom income information is available to substantiate a significant income tax liability without costly field investigation,” and that its purpose is to assess the liability either by securing a voluntary return or by computing tax, interest and penalties from information returns. IRC 6020(b)(2) makes a return the IRS prepares “prima facie good and sufficient for all legal purposes.” For how an income tax deficiency is formally proposed, see notices of deficiency; IRM 5.19.2.6.4.3 also points to ASFR reconsideration sites for original returns received after an ASFR assessment.
Related notices
- LT16: ACS letter about unpaid tax or missing returns.
- CP2000: proposal when a return was filed but income is missing.
- Letter 3219: the statutory notice of deficiency.
Questions practitioners ask
The client filed. Why the CP59?
Common causes are an e-file rejection that was never corrected, a mismatch in name, SSN or year, or a return that has not posted yet. The IRS page says to do nothing if filed within eight weeks, and otherwise mail a signed and dated copy.
What if the client was not required to file?
Send Form 15103 by mail or fax, or through the IRS Online Account, as the IRS page instructs. The IRS Do I need to file tool can help confirm.
How many years back will the IRS want?
IRM 5.1.11.7.1 says enforcement is normally pursued for six years under Policy Statement 5-133, with managerial approval for more or fewer.
What happens if the client ignores it?
A CP518 generally follows within 8 weeks, then TDI status about 6 weeks later, and possibly ASFR, which computes tax from information returns (IRM 5.19.2.3; IRM 5.19.2.6.4.3).