IRS Notice CP59: How to Deal With Unfiled Tax Returns

If you’ve received a CP59, the first step is not to ignore it. The CP59 is one of the most common notices the IRS sends for unfiled taxes, and the most important thing you can do is understand what it means and what to do next. 

We’ve got the details you need to clear up any confusion and move forward. Keep reading to learn the specifics about this notice and the clear actions you can take. If you’d rather outsource the solution, you can use TaxCure to connect with a tax professional who specializes in helping people catch up on unfiled returns.

Key takeaways

• CP59 means the IRS didn't receive your tax return.
• The IRS wants you to file the missing return or explain why you didn’t need to file.
• You typically only have 30 days to respond.
• If you ignore the CP59 notice, the IRS may file a Substitute for Return (SFR), which almost always results in a higher tax bill, plus steep penalties and interest.
• A tax professional can help you deal with unfiled returns. You can use TaxCure to find a qualified CPA, Enrolled Agent, or tax attorney near you.

The IRS’s approach to unfiled returns

Since 2024, the IRS has stepped up its enforcement of non-filing requirements, especially for higher-income filers. The agency has publicly announced a massive effort to reach taxpayers who haven’t filed, particularly those whose records show significant unreported income. 

The IRS currently estimates it has about $100 billion in unreported income from taxpayers who haven’t filed since 2017. A significant chunk of its current caseload involves high-income filers with incomes between $400,000 and $1 million, plus another 25,000 cases involving taxpayers earning $1 million or more.

A caveat: The IRS bases its numbers on income records from 1099s and W-2s. Once taxpayers file their returns and claim legitimate deductions, their actual taxable income (and resulting tax bill) is likely much lower. 

The point? The IRS has the data and is using it – if you don't file a return, they'll file one on your behalf, and the substitute for return will likely show a much higher tax liability than you owe because it won't include the right deductions, business expenses, or tax credits.

What Is IRS Notice CP59?

CP59 is a delinquency notice for unfiled tax returns. If you ignore this notice, the IRS will eventually file a Substitute for Return (SFR) on your behalf. Because the IRS prepares it using only the information it has, it excludes deductions, credits, or exemptions you might claim. Chances are, the IRS will calculate a much larger tax liability than what you likely owe.

The CP59 is clearly marked with the IRS logo on the top left corner. The notice date, notice number (CP59), and referenced tax year appear on the top right. The body of the letter will clearly state that the agency didn’t receive your tax return for a particular year and then outline options for becoming compliant. Usually, this letter includes another form you can’t ignore: Form 15103. 

Form 15103 (Form 1040 Return Delinquency)

The IRS generally sends Form 15103 with Notice CP59. Form 15103 is the key document you’ll use if you must explain your situation to the IRS. You should complete and return it to the IRS only if you:

• Already filed a return
• Don't need to file a return
• Received this notice for a deceased person

If you agree with the CP59 notice and plan to file a delinquent return, you don’t need to complete Form 15103. 

Where to send Form 15103

The IRS doesn't publish a general address for Form 15103. Use the address listed on your CP59 notice and return it in the provided envelope, or fax the form to the number noted on the notice.

The Response Deadline for Notice CP59

Find the deadline noted on your CP59 notice. The IRS typically requests a response within 30 days. Delaying only increases your chances of accruing penalties and interest, or worse, the IRS choosing to move forward with an SFR. 

How to Respond to Notice CP59

Your response depends on your specific situation. Did you forget to file? Have you already filed? Did you even need to file in the first place?

Scenario 1: You need to file a past-due return

If you receive this notice and know you missed filing for that tax year, file your past-due return as quickly as possible. 

• Most tax preparation software allows you to prepare returns for the past three calendar years. You may need to print and mail older returns, as e-filing isn’t necessarily an option for earlier tax years. 
• Missing information? Here’s where things get tricky. If you need to go back further than three years or you’re missing documents like W-2s or 1099s, or you must reconstruct business profit/loss records, speak to a tax professional. They have the tools and experience to file tax returns with missing documents.

Scenario 2: How to respond if you’ve already filed a return

It happens — your return and the CP59 notice cross paths in the mail, or the IRS may have misplaced your paperwork.

• Filed in the last eight weeks? The IRS advises you to disregard the CP59 notice. The agency says that within eight weeks, your return should be processed. Want to be proactive? Set up an online IRS account to check your return’s status.
• Filed longer than eight weeks ago? You need to respond. Complete Form 15103 and send it in by the deadline. Fill out the information at the top. Check the box indicating that you already filed the return. Note the tax year, the name on the return, and the exact date you filed. Most importantly: include a signed and dated copy of the tax return you previously filed.

Situation 3: You didn’t need to file a return

Getting a CP59 notice only means the IRS didn’t receive a return; it doesn’t automatically mean you were required to file one. If you think your income or situation didn’t require you to file for a particular year, you must tell the IRS using Form 15103.

• Go to the middle section and note the tax year.
• Explain why you didn’t need to file. For example, your income was below the minimum filing threshold for your status (e.g., “Income of $10,000 was below the Head of Household filing threshold and no special filing requirements applied”).
• You must include your filing status and any relevant details (age 65 or older, blind, dependent status, working abroad, non-US citizen/resident). This information helps the IRS calculate your correct filing threshold.
• Indicate your total income for the tax year in question.

A quick caveat: Income alone isn’t always a determining factor. For example, if you earned $400 in net self-employment income, you're required to file, even if your total income is well under the threshold. There are several other special filing requirements – for example, you must file if you owe Social Security tax on unreported tip income. Confirm that you legitimately didn’t have a filing requirement before you return Form 15103.

Scenario 4: CP59 for a deceased person

If you received a CP59 for someone who is deceased, you’ll also need to file Form 15102 to respond to the IRS.

• Complete the information at the top.
• Clearly note the person’s date of death in the middle section.

• If the estate filed Form 1041 (Income Tax Return for Estates and Trusts) instead of Form 1040, check that box and list the name and EIN used for the estate.

What Happens If You Ignore CP59?

Ignoring the CP59 is the single worst thing you can do because the IRS will escalate the situation:

• The agency may send one or two more notices, like a CP518, requesting that you file.
• If you still fail to respond, the IRS will file a substitute for return (SFR) on your behalf. Remember, this return only includes your reported income — no deductions or credits — leading to a higher tax bill.
• Once it creates an SFR, the IRS will send you a CP3219N (Notice of Deficiency), telling you how much tax you owe based on the SFR.
• If you don’t respond to the Notice of Deficiency within 90 days, the IRS will officially assess the taxes, add massive penalties and interest, and immediately begin the collection process (levies, liens, etc.).

Penalties for Not Filing Tax Returns

Failing to file a tax return will result in two separate penalties that increase your debt substantially — and quickly: the failure-to-file and failure-to-pay penalties.

• The failure-to-file penalty is 5% of your tax debt due monthly, maxing out at 25% of your total tax liability. If the IRS assesses tax via an SFR, the penalty will likely max out immediately. If you owe $10,000, this penalty adds an instant $2,500.
• The failure-to-pay penalty ranges from 0.5% to 1% per month; the IRS tacks this penalty on top of the non-filing penalty. Together, these two penalties can get up to 50% of your tax balance – that's $50,000 extra if you owe $100,000.
• The IRS also assesses interest on the entire balance due, including the penalties.

FAQs About CP59

What if I disagree with the CP59 notice?

 Form 15103 addresses the three most common reasons for disagreement (already filed, didn’t need to file, or for a deceased person). If you disagree for any other reason, your best move is to contact a tax professional immediately for expert guidance.

I can’t afford to pay my taxes. Should I still file the return?

Yes. You absolutely must still file. The failure-to-file penalty is ten times higher than the failure-to-pay penalty (5% vs. 0.5% per month). You should always file the return to stop the clock on that enormous failure-to-file penalty. Then, you can reach out to the IRS to set up payments or apply for relief options.

What if I can't pay my taxes in full?

Once you file, you can contact the IRS to request an affordable payment plan, or a tax professional can help explore options like:

• Offer in Compromise (OIC): an IRS program that allows certain financially struggling taxpayers to settle their total tax liability with the agency for a lesser amount than the original tax debt.
• Currently Not Collectible (CNC), a status the IRS grants to taxpayers when the agency determines that a taxpayer isn’t financially able to pay their outstanding tax debt without experiencing immediate economic hardship. 

What if I'm self-employed and didn't file?

If you’re self-employed, not filing is risky because you usually have two obligations: paying estimated taxes and filing a return to calculate your profit, loss, and final tax bill. Companies paying you as a contractor are required to report those payments to the IRS on a 1099 form, and payment processors may send you a 1099-K. When the IRS receives those notifications but doesn’t receive a corresponding tax return from you, you become a “target” because the agency knows you earned income but didn’t pay your fair share of taxes.

Can I e-file past-due returns?

The IRS technically accepts e-filed returns for the current tax year and the two prior years. But not all tax prep software offers this capability, especially for older years. If the software won’t let you e-file, mail your tax returns to the IRS. 

Should I file a tax return if the IRS doesn't require it?

Even if your income falls below the minimum filing threshold, you may still want to file to claim refundable tax credits or receive a refund for any withheld taxes. If you received CP59 and weren’t required to file, send the IRS Form 15103, but also consider filing to see whether you can claim a refund; note you only have three years from the filing deadline to claim tax refunds.

When to Hire a Tax Pro to Help With Unfiled Tax Returns

People fall behind on their taxes for countless reasons. Sometimes life events interfere; other times, it’s more complicated, involving lost records or complicated small-business bookkeeping. No matter the reason, there are several scenarios when calling a tax professional just makes sense:

• You’re missing income information. 
• You need to reconstruct business records.
• You can’t afford to pay your tax debt. 
• You just don’t know where to start. 
• You want professional guidance.

To get help now, use TaxCure to search for a Certified Public Accountant (CPA), tax attorney, or Enrolled Agent. You can filter results by location, experience with unfiled returns, and read reviews to find the best fit to get you back into compliance with the IRS.