The CP518A Notice is the IRS’s final reminder for individuals with unfiled returns, typically sent after multiple previous notices. This notice serves as a final attempt by the IRS to collect a missing return, warning the taxpayer of penalties and potential enforcement actions if they do not comply.
Key components of the CP518A Notice include:
- Explanation of Unfiled Return
The CP518A specifies the missing tax year and form type required, such as Form 1040 for individual income tax. The IRS highlights the importance of filing to avoid further penalties. - Consequences of Ignoring the Notice
Failure to respond to the CP518A may lead to:- Substitute for Return (SFR) preparation: If the taxpayer does not file, the IRS may create a substitute return, possibly resulting in a higher tax assessment.
- Failure-to-file penalties and interest: Unpaid taxes accrue penalties and interest, compounding the taxpayer’s debt.
- Instructions for Filing
The CP518A provides instructions for filing the missing return, including details on electronic and paper filing options to expedite compliance. - Importance to Tax Debt Resolution
Filing a missing return promptly in response to the CP518A Notice is essential for minimizing penalties and preventing tax debt from increasing. This notice provides a final opportunity to address compliance issues before the IRS escalates collection efforts.
The CP518A Notice serves as a crucial last warning for taxpayers to file and avoid penalties and enforcement actions.