What Is IRS Notice CP59 and How an Enrolled Agent Can Help

When a taxpayer receives IRS Notice CP59, it means the IRS believes they did not file a required tax return. This notice is sent when the IRS has no record of a return being filed for a specific year, even though they have information that suggests one was required. While the notice itself does not include a tax bill, ignoring it can lead to further notices, penalties, or enforcement action. An Enrolled Agent (EA) can play a critical role in resolving the situation efficiently and helping the taxpayer get back into compliance.

📌 What Is the Purpose of IRS CP59?

IRS CP59 serves as a formal request for the taxpayer to file their missing federal income tax return. The IRS may have received third-party documents such as W-2s, 1099s, or other income reports that indicate the taxpayer earned enough income to require filing a return. The notice typically includes:

• The tax year for which no return was received

• A request to file the missing return immediately

• A response form or instructions for how to respond

• A warning that further enforcement action may follow if no action is taken

While CP59 does not impose a penalty directly, failing to respond can lead to subsequent notices like CP515 or CP518, and eventually, the IRS may file a Substitute for Return (SFR) on the taxpayer’s behalf, which often results in a higher tax liability.

🤔 Why Might Someone Receive a CP59 Notice?

There are several reasons why a taxpayer might receive CP59:

• They forgot or neglected to file a return

• They believed they were not required to file

• Their return was filed but not processed correctly

• They moved and missed IRS correspondence

• There was a name or Social Security number mismatch

• They were dealing with a personal or financial hardship

Regardless of the reason, the IRS expects a response, and the taxpayer must either file the missing return or provide a valid explanation.

💡 What Are Your Options?

When you receive CP59, it's important to act quickly. Here are your available options:

1. File the Missing Return
If you still have all your documents, you can prepare and file the return immediately. This is the fastest way to resolve the issue.

2. Respond to the IRS
If you already filed the return, provide proof such as a copy of the return, certified mail receipt, or tax software confirmation. If you were not required to file, you must explain why. It is often easier to simply file a return showing income too low to require filing.

3. Request More Time
If you need more time to gather documents or work with a tax professional, you can contact the IRS to request an extension or explain your situation. If working with a tax professional, let the professional request the time.

4. Work with a Tax Professional
If you are unsure what to do, or if you owe money and are worried about penalties or back taxes, seek the help of an Enrolled Agent.

👨‍💼 How an Enrolled Agent from Books Taxes & More Can Help

An Enrolled Agent (EA) is a federally licensed tax professional authorized to represent taxpayers before the IRS in all matters. When it comes to handling a CP59 notice, an EA can provide expert guidance and representation.

Here’s how an Enrolled Agent can assist:

• Determine whether a return is required based on income thresholds and IRS records

• Retrieve wage and income transcripts from the IRS to prepare an accurate return

• File prior-year tax returns and ensure all supporting forms are included

• Communicate with the IRS on the taxpayer’s behalf

• Request penalty relief or payment plans if a balance is due

• Prevent enforcement actions by responding before deadlines are missed

Many taxpayers make the mistake of ignoring a CP59 notice, hoping it will go away.   Unfortunately, that only increases the chances of penalties, interest, and aggressive collection efforts. A proactive response, especially with professional support, can lead to a much better outcome.  Like cancer, the IRS doesn’t go away!

✅ Final Thoughts

IRS Notice CP59 is a warning sign that the IRS believes a tax return is missing. It does not include a bill but should not be ignored. Filing the return or responding with a valid explanation is essential to avoid further notices and potential enforcement. Steve Perry, Enrolled Agent with Books, Taxes & More has the tools and experience to help taxpayers take control of the situation, stay in compliance, and avoid unnecessary complications.

If you’ve received a CP59 notice and are unsure what to do, reach out Steve Perry at Books, Taxes & More for guidance and representation. With professional support, resolving the issue can be faster, easier, and far less stressful.