SP59 Notice: What Is It and How Should You Respond?
Summary:
The SP59 IRS Notice is sent to taxpayers when the IRS has no record of a prior year’s personal tax return being filed. It serves as a reminder to submit the missing return or explain why filing is not required. This notice may also provide instructions for resolving discrepancies if you believe you have already filed. Promptly responding can help avoid penalties, interest, and potential collection actions. In this article, we cover everything you need to know about the SP59 notice and what to do next.
Receiving an IRS notice can be a cause for concern, and the SP59 IRS Notice is no exception. This notice informs taxpayers that the IRS has not received a prior year’s tax return. Whether it’s a simple oversight or a more complex issue, understanding the SP59 notice and responding correctly is essential to avoid penalties, interest, or further IRS actions. This article will guide you through what the notice entails, why it was issued, and the steps you need to take to resolve the situation promptly.
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What is the SP59 IRS notice?
The SP59 Notice is issued by the IRS when there is no record of a taxpayer’s prior year tax return. It essentially serves as a reminder that the IRS did not receive a required tax return for the previous year. This notice could be triggered for several reasons, including:
- You forgot to file your tax return.
- The IRS did not process your return due to errors or incomplete information.
- The return was lost in the mail or misplaced.
- You were not required to file a return for the year in question.
The notice indicates that you should either file the missing return or explain why you believe a return was not needed. Ignoring this notice can lead to additional penalties and enforcement actions, such as levies or wage garnishments.
Pro Tip
Set up IRS account alerts online to get real-time notifications on any changes to your tax return or account. This helps you stay updated on adjustments and due dates.
How does the SP59 notice affect you?
The SP59 Notice affects taxpayers by prompting immediate action to resolve the issue of a missing tax return. If you do not respond to the notice, the IRS may assume that you owe taxes for the prior year and begin taking enforcement actions. Here’s how the notice can impact you:
- Potential penalties: Failing to file a required tax return may result in penalties, including a failure-to-file penalty and interest on any unpaid taxes.
- Delayed refunds: If you are entitled to a refund, the IRS will not process it until you submit the missing return.
- Enforcement actions: If the IRS determines that you owe back taxes, they can initiate collection activities, such as liens, levies, or garnishments.
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Steps to take when you receive an SP59 notice
When you receive an SP59 Notice, taking prompt action can help prevent additional penalties and resolve any potential issues quickly. Follow these steps to address the notice:
- Review the notice: Read the SP59 Notice carefully to understand why it was issued and what tax year is in question. Verify that the IRS has not received your prior year’s tax return.
- Check your records: Confirm whether you filed the tax return in question. If you have a copy of the return or a receipt from electronic filing, this may help resolve the issue.
- File the missing return: If you haven’t filed the return, do so immediately. Be sure to complete the return accurately and include any required information, such as an Identity Protection PIN (IP PIN) if applicable.
- Submit form 15103, form 1040 return delinquency: If you believe you are not required to file the return or if you have already submitted it, complete and send Form 15103 to the IRS to clarify the situation.
- Contact the IRS if necessary: If you have questions or need further assistance, call the number listed on the notice or visit your local IRS office.
Pro Tip
Always keep a copy of your tax returns and proof of filing, such as certified mail receipts or electronic filing confirmations. This can help resolve issues quickly if the IRS claims they didn’t receive your return.
Why you may have received the SP59 notice
There are various reasons why the IRS may issue an SP59 Notice, including:
You didn’t file a required tax return
The most common reason for receiving an SP59 Notice is that you did not file a required tax return for the previous tax year. The IRS requires individuals with taxable income above a certain threshold to file, and failure to do so may prompt the notice.
Issues with your previously filed return
In some cases, you may have filed the return, but the IRS was unable to process it due to errors or missing information. For example, if your tax return was incomplete, lacked signatures, or had incorrect information, the IRS may not recognize it as being filed.
The return was lost or not received
Although it is less common, tax returns can be lost in the mail or misplaced by the IRS. If you mailed your tax return, it is advisable to use certified mail or a delivery service with tracking to confirm its receipt.
You are not required to file
In some cases, you may not be required to file a tax return due to your income level, filing status, or other special circumstances. If you believe this applies to you, you can clarify the situation with the IRS using Form 15103.
How to respond to the SP59 notice
Filing your tax return
If you need to file a missing tax return, do so promptly. Make sure the return is complete and includes any necessary forms, schedules, and information. If you have received an IP PIN due to identity theft, be sure to include it as directed on the return.
Sending form 15103
Form 15103, also known as the “Form 1040 Return Delinquency,” should be completed and submitted if you believe you do not need to file a tax return or if you have already filed. This form allows you to explain your situation to the IRS and may help resolve the notice without further action.
Contacting the IRS
If you need further assistance or have questions about the notice, contact the IRS using the phone number listed on the notice. You can also visit a local IRS office or reach out to the Taxpayer Advocate Service if you need additional support.
Pro Tip
If you’re unable to pay your taxes in full, consider applying for an IRS payment plan online. This can help you avoid additional penalties and keep your account in good standing.
Potential consequences if you ignore the SP59 notice
Failing to respond to the SP59 Notice can lead to significant consequences, including:
- Additional penalties and interest: The IRS may assess penalties for failure to file or pay taxes, and interest will accrue on any unpaid balances.
- Enforcement actions: If the IRS believes you owe back taxes, they may begin collection actions, such as placing liens on property, garnishing wages, or levying bank accounts.
- Delayed or forfeited refunds: If you are owed a refund for a prior year, it may be delayed or forfeited entirely if you do not resolve the notice in a timely manner.
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Frequently asked questions
What should I do if I believe I don’t need to file a tax return?
If you believe you are not required to file a tax return, you should still respond to the SP59 Notice to avoid any penalties. Complete and submit Form 15103, “Form 1040 Return Delinquency,” to explain why you are not required to file. Be sure to include any supporting documentation that may help clarify your situation, such as proof of income levels or special circumstances that exempt you from filing.
How long do I have to respond to the SP59 notice?
It’s important to respond to the SP59 Notice as quickly as possible. The IRS does not specify a strict deadline in the notice, but delaying your response can lead to additional penalties and enforcement actions. Generally, responding within 30 days is recommended to avoid further complications and to ensure that your tax return or explanation is processed without delay.
Can I file my past-due return electronically?
In some cases, you can file a prior year’s return electronically, but this depends on how many years have passed since the original due date. The IRS allows electronic filing for recent tax years (typically the last three years). If the return is older, you will need to file a paper return and send it by mail. Be sure to use a trackable mailing service to confirm receipt by the IRS.
Will responding to the SP59 notice affect my credit score?
The SP59 Notice itself does not directly impact your credit score. However, if you fail to respond and the IRS initiates collection actions, such as placing a lien on your property, it could affect your credit. Responding promptly to the notice and resolving any tax issues can help you avoid collection actions that could harm your credit score.
What if I owe taxes but can’t afford to pay the full amount?
If you owe taxes and cannot pay the full amount immediately, you should still file your return and respond to the SP59 Notice. The IRS offers payment options, such as installment agreements or an offer in compromise, to help taxpayers manage their tax debts. It’s better to arrange a payment plan than to ignore the notice, as penalties and interest will continue to accrue on any unpaid taxes.
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
- The SP59 Notice is issued when the IRS has no record of a prior year’s tax return.
- Responding promptly is essential to avoid penalties, interest, and enforcement actions.
- If you believe you filed, submit Form 15103 to clarify the situation with the IRS.
- Failure to resolve the notice may result in delays in refunds and additional IRS actions.
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