IRS letter help
Got an IRS CP518 Notice? What It Means and What to Do
The CP518 is the IRS’s final reminder that it still has no record of a prior-year return from you. After this, the IRS may stop asking and work out your tax itself.
Reviewed by LaToya Clark-Thompson, FounderLast updated
What this letter is
The CP518 follows earlier letters such as the CP59. Its message is short: the IRS still does not have a record that you filed the return for the year listed, and this is your final reminder. It asks you to file, or to tell the IRS why you were not required to.
Why you got it
An earlier letter went unanswered, or your answer did not reach the right place, or the return you sent could not be matched to your account. It is also common for someone to have filed and never had it accepted: a paper return mailed without a signature, or an electronic return rejected for a mismatched name or prior-year figure.
The IRS knows to ask because income was reported under your Social Security number, from employers, banks, brokers, payment platforms or retirement plans.
What to do now
- Find the year on the notice and check whether you have a copy of a return for it
- If you filed within the last eight weeks, the IRS says you do not have to do anything
- If you filed earlier, or never filed, send the return with a completed Form 15103 to the address or fax number on your notice, with your name, number and year matching
- If you were not required to file, complete Form 15103 explaining why (it can also be submitted through your IRS Online Account)
- If you will owe, do not wait until you can pay. File, then look at payment plan options
- If you disagree with the notice, call the number printed on it
What happens if you ignore it
The IRS says it may determine your tax for you. In practice that means a return built only from the income reported under your number, with none of your expenses, dependents or credits, followed by a proposed assessment and then bills. Penalties and interest keep running, and any refund you were owed is delayed or, past the claim window, lost.
If the IRS moves to that stage you would typically receive a CP3219N, a notice of deficiency for an unfiled year that proposes tax from the income others reported and gives you 90 days to petition the U.S. Tax Court. It works like the CP3219A notice of deficiency and carries the same hard deadline. Answering the CP518 now is much simpler.
How we help
We pull your IRS transcripts to see exactly what was reported for the year and whether anything was ever filed, then prepare the federal return and the matching South Carolina return. If you were self-employed and kept no books, we rebuild the year from bank statements first; see catch-up bookkeeping.
When several years are missing, back tax filing is the right starting point. If the account needs someone to speak for you with the IRS, the independent licensed CPA we work with handles that, with our office coordinating the filings and records.
What to send us
- Every page of the CP518 and any earlier IRS letters about the same year, through the secure client portal
- Any copy of a return for that year, and any e-file rejection message
- The tax forms you have for that year, even if the set is incomplete
- For self-employment, the bank and card statements for the year
Frequently asked questions
Is a CP518 more serious than a CP59?
It is a later step. The CP59 is the first request; the CP518 is described by the IRS as a final reminder. Nothing has been assessed yet, and you can still answer simply by filing the return or explaining why you did not have to. If it stays unanswered, the IRS may calculate the tax itself.
Can I e-file a late return for an old year?
The IRS accepts electronic returns for a limited number of recent prior years through authorized e-file providers. Older years generally have to be filed on paper. Either way, the return goes to the address or fax the notice gives when you are answering a CP518, together with Form 15103.
Will filing late trigger a big penalty?
If tax is owed, a late-filing penalty and a late-payment penalty can apply, plus interest. The failure-to-file penalty usually grows faster, so filing stops the worst of it even if you cannot pay. Some penalties can be reduced later; see IRS penalty relief.
What if I do not have my W-2s or 1099s for that year?
That is normal for an older year. The IRS wage and income transcript lists what employers, banks and payers reported under your number, and a return can be prepared from it. If you had business income, the deposits in your bank statements fill in the rest.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
Related pages
CP59 notice
The IRS has no record of your personal return for a year. File it, or explain why you did not have to.
Learn moreCP3219A notice of deficiency
The 90-day letter. A proposed change to your tax and a Tax Court deadline that cannot be extended.
Learn moreIRS penalty relief
The Automatic Exemption from Penalty, which replaces First-Time Abate, and reasonable cause relief.
Learn moreHow to respond to an IRS letter
Check it, decide whether you agree, gather support, reply by the date, and keep proof.
Learn morePart of IRS & SC Letter Help. Not sure which service fits? Answer a few questions.
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