CP259D Notice: Request for Missing Information

The CP259D Notice is sent by the IRS to notify taxpayers that specific information is missing from their tax return, preventing its processing. The CP259D Notice is typically issued when required details or documentation are absent, and the IRS is unable to verify the accuracy of the taxpayer’s reported information. This notice provides the taxpayer with an opportunity to submit the necessary information to avoid further delays, penalties, or adjustments.

Key components of the CP259D Notice include:

1. Explanation of Missing Information
   The CP259D Notice outlines the exact details or documentation the IRS needs to complete the processing of the return. This may include:
   • Proof of income or deductions: Documentation that substantiates the amounts reported on the return.
   • Verification of credits or exemptions: Information confirming eligibility for credits like the Earned Income Credit or Child Tax Credit.
   • Filing status or dependent claims: Verification for filing status or dependents claimed, particularly if there is a discrepancy with prior filings.
2. Instructions for Submission
   The notice provides clear instructions on how to submit the required information, which may involve mailing or electronically submitting forms or documents directly to the IRS. The IRS includes a deadline by which taxpayers must respond to avoid further penalties or delays in processing their return.
3. Consequences of Non-Compliance
   If the taxpayer does not respond by the specified deadline, the IRS may:
   • Reject the tax return: If the return cannot be processed due to incomplete information, it may be considered invalid.
   • Impose penalties: Late fees or penalties may apply if the required information impacts the accuracy of reported income or credits.
   • Issue adjustments: The IRS may adjust the return, potentially resulting in additional taxes owed, if they cannot verify certain deductions or credits.
4. Options for Dispute
   If the taxpayer believes the information request is in error or unnecessary, they may contact the IRS to dispute the notice. Supporting documentation or clarification can help resolve misunderstandings and ensure the return is processed correctly.
5. Importance to Tax Debt Resolution
   The CP259D Notice plays a critical role in tax debt resolution, as it addresses discrepancies that may result in penalties or additional tax debt. Providing the IRS with accurate information allows the taxpayer to avoid assessments that could contribute to long-term tax liabilities. Promptly responding to the notice helps taxpayers stay compliant, prevent penalties, and resolve their tax debt efficiently.

The CP259D Notice highlights the importance of submitting a complete and accurate return, offering taxpayers a clear path to compliance and debt resolution by addressing missing information.