CP259P Notice: What Is It and How Should You Respond?
Summary:
IRS Letter CP259P is an official notice from the IRS sent to employers who have missed filing employment tax returns. This letter notifies businesses, including those in specific industries like agriculture and construction, of non-compliance and outlines required steps to resolve the issue. Understanding what IRS Letter CP259P means, why you received it, and the steps to take can help prevent penalties and maintain good standing with the IRS. In this article, we’ll cover everything you need to know about IRS Letter CP259P, including potential consequences, how to respond effectively, and frequently asked questions.
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Receiving IRS Letter CP259P can be unsettling, especially if you were unaware of any filing requirements. This letter serves as a reminder that employment tax returns have not been filed and may indicate that action is necessary to avoid further penalties. Addressing the issue promptly can help you avoid potential financial consequences and keep your business compliant. In this guide, we’ll explain the purpose of IRS Letter CP259P, outline steps to take when you receive it, and answer common questions to help you manage this process confidently.
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What is IRS Letter CP259P?
IRS Letter CP259P is a notification from the IRS that informs businesses they have missed filing required employment tax returns. This letter is sent specifically to employers who are required to file employment tax returns for their employees and who have not yet complied. Industries with specific requirements, such as agricultural employers and construction businesses, may frequently receive this notice due to unique filing rules or seasonal work schedules that can lead to filing oversights.
Why you might receive IRS Letter CP259P
The IRS issues Letter CP259P to remind businesses of their filing obligations when employment tax returns are missing. Some common reasons you might receive this letter include:
- Missed filing deadlines: If you did not file employment tax returns by the IRS deadline, the IRS may send Letter CP259P as a prompt.
- Industry-specific filing requirements: Businesses in industries like agriculture or construction, where tax rules may vary, might receive this letter due to missed filings unique to their sector.
- Unaware of filing requirements: Some new or seasonal businesses may not realize they are required to file certain employment tax forms, leading to the issuance of Letter CP259P.
Receiving Letter CP259P does not necessarily mean you owe taxes but does indicate that the IRS needs clarification or requires missing documentation.
Pro Tip
Keep a checklist of all IRS filing deadlines specific to your industry. This can help you avoid accidental oversights and penalties related to missed filings.
How IRS Letter CP259P affects you
Letter CP259P is a formal notification that calls attention to missing employment tax returns, but it doesn’t immediately impose penalties or consequences. However, ignoring the letter could lead to further action by the IRS, including fines, interest, and enforcement actions. Here’s what it means for you:
Risk of penalties and interest
If you do not respond or provide the required filings after receiving Letter CP259P, the IRS may assess penalties. This includes failure-to-file penalties and potential interest on any unpaid taxes related to employment filings. Responding promptly can help you avoid these additional costs.
Potential for enforced IRS action
In cases where no response or filing occurs after multiple IRS notices, the IRS may initiate actions such as tax liens or levies to recover unpaid employment taxes. Although this is a later-stage consequence, it’s essential to take action early to prevent escalation.
Pro Tip
Consider setting up a reminder system or using an accountant to help track filing deadlines. Keeping on top of due dates is the best way to avoid missing essential filings.
Steps to take when you receive IRS Letter CP259P
Receiving IRS Letter CP259P should prompt immediate action. Follow these steps to address the notice and avoid additional penalties:
- Review the letter: Carefully read Letter CP259P to understand which forms or filings are missing. The letter will specify the exact employment tax returns required.
- Confirm your filing obligations: Ensure you are aware of your business’s filing requirements. Depending on your industry, specific forms like Form 943 for agricultural employers may be necessary.
- File missing tax returns: Submit the required employment tax returns if you haven’t already. Timely filing can reduce penalties and interest.
- Contact the IRS if needed: If you have questions or need an extension, contact the IRS directly to discuss options. A tax professional may also assist you with this step.
How to respond to IRS Letter CP259P
Responding accurately to Letter CP259P can prevent further complications. Here’s a guide to handling your response:
Steps to complete your response
1. Gather necessary forms and documents: Make sure you have the required employment tax forms ready to submit, such as Form 941 or Form 943.
2. File missing returns: If you missed previous filings, submit the correct forms to the IRS promptly to bring your records up to date.
3. Contact the IRS: If you’ve already filed the necessary returns or believe the notice was sent in error, contact the IRS to clarify the situation and provide any supporting documentation.
4. Seek professional assistance if needed: If responding to the letter seems complex, a tax professional can offer guidance and ensure accurate filing.
2. File missing returns: If you missed previous filings, submit the correct forms to the IRS promptly to bring your records up to date.
3. Contact the IRS: If you’ve already filed the necessary returns or believe the notice was sent in error, contact the IRS to clarify the situation and provide any supporting documentation.
4. Seek professional assistance if needed: If responding to the letter seems complex, a tax professional can offer guidance and ensure accurate filing.
Pro Tip
A tax professional can help interpret IRS requests and provide guidance on industry-specific filing requirements, reducing the risk of repeated notices.
Additional resources for managing IRS Letter CP259P
Here are some resources and strategies to help you manage employment tax compliance:
- Hire a tax professional: A certified public accountant (CPA) or tax attorney can help navigate IRS requirements and handle correspondence with the IRS.
- Use IRS online tools: IRS.gov provides various tools and calculators for determining employment tax requirements and due dates.
- Consider the Taxpayer Advocate Service (TAS): The TAS assists taxpayers facing financial or procedural difficulties with IRS issues.
Leveraging these resources can ease the burden of handling IRS correspondence alone and improve your compliance practices.
Consequences of not responding to IRS Letter CP259P
Failure to respond to IRS Letter CP259P may result in:
- Increased penalties and interest on any unpaid employment taxes.
- Possible enforcement actions, such as tax liens or levies.
- Risk of escalation if non-compliance continues, potentially affecting business operations.
Responding to the notice promptly and addressing any filing issues is crucial to avoid these repercussions.
Possible outcomes of addressing IRS Letter CP259P
Once you respond to Letter CP259P, you may experience one of the following outcomes:
- Resolution: If you provide the required filings and pay any outstanding amounts, the IRS will close your case with no further action.
- Negotiation: In some cases, the IRS may work with you to establish a payment plan for unpaid taxes.
- Further review: If discrepancies remain, the IRS may conduct additional reviews or request more documentation.
Understanding the potential outcomes can help you prepare for the steps ahead and maintain peace of mind during the process.
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Frequently asked questions
What should I do if I cannot afford to pay the employment taxes owed?
If you’re unable to pay the full amount of employment taxes owed, the IRS offers options such as installment agreements or short-term extensions. Contact the IRS to discuss your situation and request a payment plan that allows you to pay the amount over time. You may also want to consult a tax professional to explore all available options.
How can I avoid receiving IRS Letter CP259P in the future?
To avoid future notices, stay proactive about filing all required employment tax returns by their deadlines. Maintaining a tax calendar or working with a professional tax preparer can help ensure you don’t miss critical deadlines. For seasonal or irregular businesses, reviewing IRS guidance on industry-specific filing requirements can also help prevent oversights.
What types of employment tax forms should agricultural employers file?
Agricultural employers are typically required to file Form 943, the Employer’s Annual Federal Tax Return for Agricultural Employees, which reports employment taxes for farmworkers. In some cases, they may also need to file other employment forms depending on specific circumstances. Consulting the IRS’s Employer Tax Guide or a tax advisor can clarify which forms are required.
Can the IRS waive penalties associated with missing employment tax returns?
The IRS may consider waiving penalties in certain cases, especially if you can demonstrate reasonable cause, such as a natural disaster or a serious illness, that prevented timely filing. To request penalty abatement, you’ll need to provide a detailed explanation of your circumstances and supporting documentation. A tax professional can help you submit a formal request if necessary.
Will resolving IRS Letter CP259P prevent future audits or IRS actions?
Addressing IRS Letter CP259P and filing missing returns promptly helps improve your compliance and may reduce the risk of further IRS actions related to employment taxes. However, resolving this letter does not guarantee immunity from future audits or reviews. Staying compliant with all tax requirements, keeping accurate records, and filing on time are essential for minimizing audit risks.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- IRS Letter CP259P is a notice sent to businesses that have missed filing required employment tax returns, particularly in industries like agriculture and construction.
- Ignoring this letter can lead to penalties, interest, and potential enforcement actions from the IRS.
- It’s important to review the letter thoroughly, confirm your filing obligations, and file any missing returns to avoid further complications.
- Engaging a tax professional can help you respond accurately and prevent repeat notices from the IRS.
- Responding promptly to IRS requests and providing all necessary documentation is essential to avoid penalties and maintain compliance.
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