The Internal Revenue Service (IRS) usually sends taxpayers notices and letters to provide an update or remind them to take a particular action. The CP259 notice is one of them. You will receive this notice when the IRS requires you to file a business tax return for the tax period included in the notice, but you haven’t.
Here is what to know about this notice:
What should you do?
When you receive the CP259 notice, read it carefully, paying close attention to the tax period stated and the deadline. Note that you may receive multiple notices for each tax form and tax period for which the IRS has not received your business tax return.
If you agree with the notice, you should file the required business return. You can do this electronically by filing your return with all the required schedules using your e-file provider. Or you can mail your paper return with the required schedules to the IRS. If you can’t pay the full amount, request a payment plan with the department.
If you believe you are not required to file, complete the included response form and mail it using the enclosed envelope or fax it to the IRS.
Can you disregard the notice?
If you filed your business tax return within the last four weeks of receiving the notice using the same name and employer identification number (EIN) on the notice, you don’t need to respond. The IRS may still be processing your return.
Otherwise, you should respond to the notice, providing documents that support why you believe you are not required to file the tax return. Ignoring the notice in such an instance can lead to penalties.
Receiving a CP259 notice does not always mean you have delinquent business tax returns. Learn more to understand how you can avoid penalties and a potential tax audit.