FindLaw Network

White Plains: 914-686-7171
Chappaqua: 914-238-7171
East Hampton: 631-329-7171

Large Firm Skills
With Small Firm Service

Receiving notice of a delinquent tax return

| Jul 13, 2020 | Tax Controversies |

The Internal Revenue Service uses numerous notices to contact taxpayers if the agency believes something is amiss with a taxpayer’s return or tax balance. As a result, if New York residents receive a notice from the IRS, they may immediately feel a bit anxious and possibly confused about what the notice means. For instance, if a person receives a CP516 notice, it means he or she may have a delinquent tax return.

A CP516 notice is essentially a letter from the IRS indicating that the agency does not have record of a tax return that should have been filed recently or, possibly, for other past returns. In some cases, individuals do not have to file a tax return. If such a person receives this notice, it is possible to call the IRS or mail in Form 15103 explaining why filing was not necessary.

Form 15103 can also be used if a person is filing late or to notify the IRS that the return referred to in the notice has already been filed. It is possible to face penalties if a person does not file a tax return on time, especially if he or she has an outstanding balance. However, even if a taxpayer receives this notice, it does not have to seem like the end of the world as there are often various options for handling any issue with the IRS.

Because notice and form numbers can cause confusion, some New York taxpayers may feel uncertain about the issue they face or how to appropriately handle it. Fortunately, this type of problem does not have to be handled alone. If the IRS believes that individuals have a delinquent tax return, those who receive notice may wish to reach out to a legal professional experienced in tax law for help.