CP518 Notice: What It Means and What to Do

What the CP518 notice says

The IRS page for this notice says: “This is your final reminder; we still don’t have a record that you filed your prior year tax returns.” The word “still” signals earlier contact. The IRS calls this notice the last reminder.

The notice asks one thing: did you file the return for the year it names? The IRS page asks for a return or an explanation and lists no amount due.

What you need to do

The IRS tells you to respond immediately, and it gives two paths. If you owe a return, file it with a completed Form 15103, Form 1040 Return Delinquency, to explain why you are filing late or that you already filed. If you do not have to file, complete Form 15103 to explain why.

Return the form, and the tax return if you are filing one, to the address on your notice. The IRS’s past-due-returns page says the same: send a past due return to the location on the notice you received.

You can fax it to the number on the notice, using a fax machine or an online fax service. The IRS warns you to read an online fax service’s privacy and security policies before you send digital data.

One narrow online option exists. If you send only a completed Form 15103 to explain why you do not have to file, you can submit it online with an IRS Online Account. A return still goes by mail or fax, or by e-file through a provider that offers it for one of the 2 most recent prior years.

Is there a deadline?

The IRS page states no response date. It says to respond immediately, so do not read the missing date as permission to wait. Check the notice itself for any date it prints.

The IRS calls the CP518 a final reminder, so earlier unfiled-return notices usually come first. The return delinquency notices page shows where the CP518 fits and how it differs from the CP59 and from the business notices.

What happens if you do not respond

The IRS page lists three results. The IRS may determine your tax for you. Penalty and interest may continue to accrue, and the unfiled return may delay a refund you are owed. Related tool: IRS Penalty and Interest Calculator.

The first result carries the most weight. The IRS’s past-due-returns page says a substitute return the IRS files for you might not give you credit for deductions and exemptions you may be entitled to receive. The substitute for return notices page explains the notices that follow.

The IRS’s past-due-returns page also says the IRS holds income tax refunds while a return is past due. It holds them until it gets the return or accepts a reason for not filing.

If you already filed, or cannot tell

The IRS page answers four cases. If you disagree with the notice, call the toll-free number on your notice with the notice and your account information in hand, or respond by returning Form 15103. If you filed within the last 8 weeks, you do not have to do anything.

If you did not file, or you filed more than 8 weeks ago, the IRS page Understanding your CP518 notice says to complete Form 15103. Make sure the name, Social Security number, and year on your return match. Send a signed, dated copy of the return with the form.

If you cannot pay the full amount when you file, file anyway and request a payment plan to pay the balance over time. The IRS’s late-filing collection page also lists an online payment agreement, an offer in compromise, and a temporary delay. The IA Payment Calculator sizes a payment plan before you ask for one.

What people mistake the CP518 for

Some readers take the CP518 for a bill. The IRS page describes a request for a return or an explanation and lists no amount due.

Others take it for the CP59 or the CP515, which belong to the same family of unfiled-return notices. The IRS labels the CP518 the final reminder. A business notice, addressed to an EIN, belongs to a different track on the family page.

Common Questions