IRS notice
IRS Notice CP518: Final Reminder to File Your Return
The IRS's final reminder that it has no record of your prior-year return; ignoring it can lead the IRS to figure your tax for you.
Reply by the date on the notice
The IRS asks for a response immediately; use the date printed on your notice, because the next step can be the IRS calculating your tax without your return.
A CP518 is generally the IRS's final reminder that it has no record of a prior-year return from you. The IRS asks you to respond immediately: file the return with Form 15103, send a copy if you already filed, or use Form 15103 to explain why you aren't required to file. If you don't, the IRS may determine your tax itself.
What this notice is telling you
- This is described by the IRS as a final reminder, so earlier requests for the same year are likely on record.
- If you don't respond, the IRS may determine your tax for you, generally from the income reported to it.
- Penalties and interest may keep building, and any refund you are owed may be delayed.
- If you filed within the last eight weeks, the IRS says you don't need to do anything.
What to do
Treat it as the last chance to file on your own terms
Put the year on the notice at the top of your list. The return you prepare can include deductions, credits and the filing status you are entitled to; a figure the IRS builds from payer reports may not.
Confirm whether a return was already sent
If you filed more than eight weeks ago, check that the name, SSN and tax year match the notice. Send Form 15103 with a signed, dated copy of the return.
If you haven't filed, send the return with Form 15103
Use the form to explain why the return is late. Mail or fax both to the address or fax number on the notice.
If you aren't required to file, say so on Form 15103
That form can be submitted online on its own through an IRS Online Account.
Call if you disagree
The IRS invites you to call the toll-free number on the notice with the notice and your records in front of you, or to respond in writing with Form 15103.
What "the IRS may determine your tax" means
When a return never arrives, the IRS can prepare a substitute for return using the wages, interest, retirement distributions and other income that employers and financial institutions reported. That calculation may leave out deductions, credits and dependents you would claim, and it may use a less favorable filing status. The proposed tax is then sent in a CP3219N, a statutory notice of deficiency, which starts a 90-day clock to file your own return or petition the US Tax Court.
Responding at the CP518 stage keeps the matter at the reminder level. Once a deficiency notice is issued, the IRS says you can no longer request an extension to file that return.
If the return shows tax you can't pay
File it anyway. The IRS's guidance for this notice is the same: file even if you can't pay in full, and once the tax is assessed you can request a payment plan for the balance. For many individuals who owe $50,000 or less, the IRS's Simple Payment Plan is the starting point.
Where a CP518 sits in the sequence
| Notice | How the IRS describes it |
|---|---|
| CP59 / CP515 | No record of your return; please file or explain |
| CP518 | Final reminder; the IRS may determine your tax if you don't respond |
| CP3219N | Notice of deficiency based on income reported to the IRS; 90 days to petition Tax Court |
Where this notice sits
The usual order. Not every account gets every notice, and some steps can be skipped.
Want a CPA to deal with it?
Bring the notice to a free consultation, in person on James Island or by video. We read it with you, tell you what it means for your account and, if you want us to, take over the response once you sign Form 2848.
Unfiled tax returns — Missed one year or several? We find out what the IRS already has, prepare the missing federal and South Carolina returns, and sort out the balance after they are filed.
Sources
By Haigler CPA Group. Updated . Notices are revised from time to time, so go by the wording and dates on your own notice. The information on this site is general in nature and is not tax, legal, or accounting advice for your situation. Tax law changes and the right answer depends on facts we would need to review with you. Please speak with a qualified professional before acting on anything you read here.
Questions about CP518
How is a CP518 different from a CP515?
Both say the IRS has no record of your return and ask for the same response. The CP518 is labeled a final reminder and warns that the IRS may determine your tax if you don't respond.
Who do I talk to if I think the CP518 is wrong?
The IRS asks you to call the toll-free number on the notice with the notice and your account information ready. You can also respond in writing with Form 15103 explaining why you disagree.
Can I fax my response?
Yes. The IRS lets you fax the return and Form 15103 to the number on the notice. If you use an online fax service, check its privacy and security policies before sending tax documents.
What if the year on the notice is one I'm sure I filed with a different SSN or name?
Send Form 15103 with a signed, dated copy of the return and explain the difference. Make sure the copy shows the name, SSN and tax year as they appear on the notice, or explain clearly why they differ.
Talk to a tax expert
Tell us what you are dealing with and we will tell you how we would handle it.