Receiving a CP 59 notice from the Internal Revenue Service (IRS) can be alarming. This letter is a pointer to the fact that the IRS did not receive a tax return from you for a particular tax period. One might question about what should they do when they receive a CP 59 notice? What should be the right actions to take? This article will give an in-depth explanation and provide useful tips on how to handle this situation. Starting from identifying why you received the notice, to the necessary steps towards resolution.
Understanding the CP 59 Notice
A CP 59 notice is essentially a letter sent by the IRS notifying you that they did not receive a particular tax return. All tax payers are obliged to report their income annually to the IRS by filing a tax return. If you did not file a tax return for a particular year, the IRS will certainly notice and eventually send you a CP 59 notice.
Reasons for Receiving a CP 59 Notice
The primary reason for receiving a CP 59 notice is the failure to file a tax return. But, confusion can arise if you believe that you have already filed the return or if your situation did not require you to file one. There can be several scenarios why you might receive this notice. The most common ones are miscommunication, late filing, failure to file, or the IRS somehow missed your tax return during processing.
What Steps to Take After Receiving the CP 59 Notice
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Verify the Notice: The very first step is to verify the CP 59 notice. Check the information on the notice against your records. If you confirm that you did not file the return, move on to the steps below. But, if the IRS is mistaken, it is crucial to contact them and explain the situation.
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File the Tax Return: If you realize that you have indeed failed to file your tax return for the mentioned period, you need to fix that situation promptly. Make sure to file your missing tax return as soon as possible.
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Pay any taxes Owed: Once you’ve filed your return, you may find out that you owe the IRS money. In that case, you must take suitable measures to remit your payment. If you’re unable to pay all at once, there are installment plan options available.
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Contact a Tax Professional: If you find yourself overwhelmed, it might be best to seek help from a tax professional. They can guide you through the process and ensure you are complying with all IRS guidelines and rules.
Frequently Asked Questions
What is a CP 59 notice?
A CP 59 notice is a letter sent out by the IRS notifying you that they did not receive a tax return from you for a specific tax period.
How do I respond to a CP 59 notice?
You should confirm the details stated in the CP 59 notice with your records, file the missing tax return if any, remit any due taxes, and consider contacting a tax professional for further guidance.
Why did I receive a CP 59 notice?
The main reason for receiving a CP 59 notice is due to the failure of filing a tax return for a specific tax period. It may also be due to an error in IRS processing.
Final Thoughts
Dealing with a CP 59 notice can be worrisome, but by taking swift and correct actions, you can easily resolve this situation. The key is to verify the authenticity of the notice, file the missing return, pay due taxes, and seek professional tax assistance if necessary.
