CP518: the last reminder before the IRS figures your tax
- What it is
- Final reminder: no record of your prior returns
- Type
- Return not received
- Your deadline
- "Immediately respond to the notice."
- To
- You
- From
- Blaga Veleva, EA
- Re
- Final unfiled notice
A CP518 is the IRS's final reminder that it has no record of your prior-year returns. Respond immediately by filing the missing return with Form 15103, or by explaining on Form 15103 why you don't need to file. If the IRS hears nothing, it may determine your tax for you. Blaga Veleva, EA can prepare the return and contact the IRS on your behalf.
What does the CP518 notice mean?
The CP518 is the last letter in the reminder series. The IRS has written before and still has no return from you for the years listed. This is the stage where the IRS stops asking and starts acting.
The notice lists the tax years involved and the response options. Keep the envelope and the letter together; the date printed on the letter is the one that counts.
You still control the outcome right now. A return you prepare yourself, with your own deductions and credits, almost always tells a fuller story than one the IRS builds from income reports.
How much time do I have?
The irs.gov CP518 page says: "Immediately respond to the notice." There is no fixed day count. Treat the date on the letter as already running.
What happens if I ignore it?
The IRS may determine your tax for you through a substitute return. Per irs.gov, that return "might not give you credit for deductions and exemptions you may be entitled to receive." Penalty and interest may continue to accrue, and any refund you are owed may be delayed.
The IRS's past-due returns page adds that it may then send a notice of deficiency giving you 90 days to respond, and unpaid proposed tax can lead to wage or bank levies.
What should I do this week?
- Call or book a consult today so the response goes out quickly.
- Pull wage and income transcripts for each year on the notice.
- Prepare the return, or Form 15103 alone if no return was required or you already filed.
- Send it to the address or fax number on your notice. If you only need to explain why you don't have to file, Form 15103 can go in online through your IRS Online Account.
- If the return shows a balance, ask about an installment agreement before it becomes a collection case.
How an Enrolled Agent helps with a CP518
Blaga files the past-due returns with Form 15103, or uses the form to show you didn't need to file or already did. If you disagree with the notice, she can call the IRS for you under Form 2848. When the return leaves tax you can't pay at once, she sets up a payment plan.
Enrolled Agents have unlimited practice rights before the IRS, like attorneys and CPAs, per the IRS. Blaga works from FM 1960 W in Houston, and by secure portal for people outside the area.
What usually comes next?
If you file, the IRS processes the return and either closes the matter or bills any tax due. If you don't, expect a substitute return and a deficiency notice; see the CP3219A notice of deficiency for how that letter works. Owing for several years? Read about back taxes help.
Not in the decoder yet. Read it to us.
Call (281) 785-0460 Send it to us
That does not mean it is unusual. The IRS sends many different notices and letters. Read us the number and the date printed on it, and Blaga will tell you what it is and what it asks you to do.
Check the letters before the number too (CP, LT or Letter), in the top right corner. See every letter in the decoder.
Type the number from the top right corner of your letter, for example CP504 or LTR 1058. No number? Try a word like levy, lien or audit.
Which one is it?
Look at the letters printed just before the number, top right of the first page.
Still not sure? Call (281) 785-0460 and read it to us.
Which letter is it?
The number is in the top right corner of the first page, for example CP14 or LTR 1058. Type it above, tap a common one below, or see every letter the decoder covers.
- What it means
- Your deadline
- If it waits
- How an Enrolled Agent can help
Have Blaga read yours Full guide
Source: irs.gov. This is a plain-English summary, not advice on your case.
A client, in their own words
“Blaga Veleva was wonderful. It was such a relief to find her because I had 5 years of tax returns to file and I was concerned about finding someone that would take the time to be very thorough with all of it. I have never been behind like this in the past having always filed every year. I have always used a CPA and they all handed me my return and basically left me to call back if I had any questions. Not only was Blaga very thorough with each return but she told me that we would go through each one to be sure everything was accurate and that nothing was missed. When we made the appointment for me to pick up the returns she spent 4 hours with me going over each return tweeking anything that could be tweaked as we went along. I recommend Tax And Business Solutions to anyone who cares about the accuracy of their returns.”
Questions people ask
Q1Is CP518 the last notice before the IRS files for me?
irs.gov calls it a final reminder. If the IRS doesn't hear from you, it may determine your tax for you, which is the substitute return process.
Q2Can I still file my own return after a CP518?
Yes, and you should. Filing your own return lets you claim the deductions and credits a substitute return might leave out.
Q3Will I go to jail for not filing taxes?
The IRS warns that people who repeatedly don't file could face additional penalties and/or criminal prosecution. Answering a CP518 promptly is the way to show the IRS you are dealing with it.
Q4How many years back do I have to file after a CP518?
Start with every year listed on the notice. Blaga can review your transcripts to see whether other years are missing too.
Q5Can I get a payment plan if my late return shows I owe?
Usually, yes, but filing comes first. IRS.gov lets individuals apply online for a long-term plan if they owe $50,000 or less in combined tax, penalties and interest and have filed all required returns. That second condition is why answering the CP518 matters.