CP80 Notice: Unfiled Tax Return and Credit on Account

The CP80 Notice is issued by the IRS to notify taxpayers that they have an unclaimed credit on their account, but the IRS has not received a tax return for the year in question. In other words, the IRS is holding a refund or overpayment in the taxpayer’s account, but the taxpayer must file their return to claim the credit.

Key components of the CP80 Notice:

• Unfiled Return: The notice indicates that the IRS has no record of a tax return being filed for the specified year. The taxpayer must submit the missing return to resolve the issue and claim the credit or refund.
• Credit on Account: The CP80 informs the taxpayer that they have a credit, which could be the result of withholding, estimated tax payments, or other overpayments made during the year. However, this credit will not be refunded or applied until the return is filed.
• Filing Instructions: The notice includes instructions on how to file the missing return, including the forms required and where to send them. It’s important for the taxpayer to file as soon as possible to avoid losing the credit, as there are time limits on claiming refunds.
• Consequences of Non-Compliance: If the taxpayer fails to file the return, the IRS may eventually use the credit to pay off any other tax debts or apply it to future liabilities. If no action is taken within the statutory deadline, the taxpayer may forfeit the credit.

The CP80 Notice is an opportunity for taxpayers to claim credits or refunds they are entitled to by filing the missing return, but they must act promptly to avoid losing the refund.