Have you missed a tax return deadline? You may get Form 15103 in the mail, which is called a Form 1040 Return Delinquency. The IRS uses this form if the agency has determined you have missing tax returns. Your options are to file the missing returns or complete this form to explain why you didn’t need to file.
Never ignore IRS notices, even if you think you did nothing wrong. You need to deal with the matter quickly to avoid penalties, interest, and further IRS collection actions. Ask a tax expert for help if you don’t understand your notice about unfiled returns.
When would you receive IRS Form 15103? What other notices will you receive? Do you need to file Form 15103 if you don’t owe taxes? This post walks through all the answers to questions you may have about your delinquent return and how to complete the form.
Key Takeaways:
- If you didn’t file tax return(s) – the IRS may send notices CP59, CP516, or CP518 with Form 15103.
- What to do next – file your tax return if needed and fill out Form 15103.
- Use Form 15103 to respond to the IRS – indicate that you already filed your return, you don’t need to file, or you have reasons for not filing.
- If you don’t respond – you could face additional penalties and interest, and the IRS may file a substitute for return (SFR) on your behalf, which doesn’t account for deductions and credits you qualify for.
Why Is the IRS Asking for Form 15103?
IRS Form 15103, Form 1040 Return Delinquency, is a form that the IRS sends with notices about your outstanding tax returns. To respond, you can file a tax return, fill out the form to explain why you didn’t need to file, or file a return and complete the form.
The IRS will send you this document along with other notices about your delinquent return. These notices may be one of the following:
- Notice CP59, Form 1040 Tax Return Not File: This is a common notice that comes shortly after you miss your tax filing deadline. It informs you of what you did wrong, what to do next, and the consequences if you do nothing.
- CP516, Unfiled Form 1040: This basically tells you the same thing as CP59, that the IRS still has not received your tax return. This notice could come after CP59 or CP515.
- CP518, You Must File Your Tax Return: Notice CP518 is your final notice about the missing tax return. If you don’t respond to this one, the IRS could file a substitute for return (SFR) on your behalf, assessing your tax bill for you. You’ll also continue to incur penalties and interest.
Note that these notices often do not include a specific deadline for a response. However, you need to respond right away to avoid penalties and other issues.
If you’ve already filed your tax return by the time you get one of these notices, or you believe you don’t have to file, you can indicate that on your response form, notice IRS Form 15103. If you’re not sure why you received a delinquent return notice, talk to a tax attorney about your situation to get expert help.
What to Do When You Receive Form 15103
You may feel worried when you get Form 15103 in the mail. Fortunately, you can take steps right away to get the matter resolved, depending on why you received an IRS notice. Here are the steps to take:
File Your Delinquent Return
First, file the tax return that you missed. Prepare your return using your accurate income and expense information from the year, ensuring you don’t leave off any income. Review your Form 1040 for accuracy before submitting and pay any taxes you owe right away or contact the IRS to make arrangements as outlined below.
Don’t Ignore IRS Notices
Some taxpayers ignore IRS notices because they’re afraid they can’t pay or they don’t agree with the IRS’s findings. This is never a good idea. If you do nothing, the IRS may assess taxes against you using information from other sources. If you owe money, the agency will initiate collection actions and charge penalties. No matter what your situation is, respond to notices in a timely manner.
Complete Form 15103
If you have filed your tax return already, have a reason for not filing, or believe you don’t have to file, use the enclosed Form 15103. You may need these additional documents to support your form:
- A dated copy of your tax return
- Reasons you don’t have to file, such as having income under the filing threshold for your filing status.
- An explanation of why you didn’t file on time
Make sure all the provided details match your tax return, like your contact information, tax year, and Social Security number.
Submit IRS Form 15103
The IRS will likely require you to mail in your Form 15103, plus any documents you want to attach as explanation or proof. Follow the instructions on your notice about where to send your form and the supporting documents. Contact the IRS at the phone number provided if you have questions about where to send Form 15103.
Stay Organized
To comply with tax requirements, you need to stay organized throughout the year. Create a system for tracking income and expenses. Pay attention to upcoming deadlines, and set reminders if you have trouble remembering when to file. Hire a tax professional if you need help preparing and filing your tax return.
Work with a Tax Professional
You don’t have to deal with IRS issues and notices on your own. If you’re overwhelmed by information and don’t understand tax requirements, talk to a tax professional. They can help you understand filing deadlines and rules, how to deal with the IRS, and what to do when you haven’t filed your return but were required to do so. Tax experts will help you get back in good standing in no time.
What Happens If I Ignore Delinquent Return Notices?
If the IRS has discovered that you should have filed a tax return but didn’t, and you don’t respond to delinquent return notices, it may file an SFR on your behalf. The IRS pulls together an SFR using information provided by third parties, such as your employers and financial institutions — anyone that paid you in the applicable tax year.
But this isn’t necessarily “free tax return prep” – there are downsides to SFRs. The IRS will only include information it has on you regarding income. It won’t deduct any expenses or claim any credits, even if you qualify for them. So, your tax assessment is usually going to be higher if the IRS submits a return for you.
The consequences of not filing vary based on how long it’s been, but here are other consequences of ignoring late return notices and Form 15103:
- Penalties, such as the failure to file and failure to pay penalties, and building interest on your balance
- IRS Notice CP3219N, Notice of Deficiency, also known as the 90-day letter, which outlines that the IRS has not received your tax return, it calculated your taxes for you, and it charged penalties. You have 90 days to file a petition with the tax court if you disagree with the tax assessment on this form. You can still file your return at this point to claim your applicable deductions and credits.
- Missing out on your tax refund – if you don’t file a return within three years of the original tax filing deadline for that year.
- Disrupting your Social Security benefits – since if you fail to file, the administration won’t get reports of your income and you won’t get credits that go toward your benefits.
- Getting pursued by the IRS with collection actions if you owe money, including liens, levies, and wage garnishment.
Not filing your tax return can lead to significant penalties and issues with the IRS that you want to avoid. If you’re having trouble filing or paying what you owe, talk to a tax professional about your relief options.
What If I Can’t Pay My Taxes?
If you haven’t filed because you’re afraid of paying your tax bill, you have options when you can’t cover your tax balance all at once. These include:
- Installment agreements: You can set up a payment plan to make monthly installments until your balance is paid off.
- Settling your debt for less: An offer in compromise or partial payment installment agreement (PPIA) allows you to pay less than you owe because of your financial situation.
- Temporary collection delay: You can request currently not collectible (CNC) status if going through a temporary hardship, which puts a pause on collections.
You also may qualify for penalty abatement — first-time abatement or reasonable cause — or innocent spousal relief to find other options for paying off your tax debt.
When to Contact Damiens Law
IRS notices of any kind can feel overwhelming. Whatever your situation is, make sure you never ignore notices and act quickly. With Form 15103, the IRS is alerting you that you have a delinquent tax return and requesting that you file right away or provide more information about why you haven’t filed.
If you can’t file your return, have trouble affording taxes, or don’t agree with the IRS’s findings, work with a tax expert at Damiens Law. Our attorney will help you navigate any IRS documents you receive and respond quickly to avoid further penalties or other adverse actions.
Reach out to Damiens Law today to get started with a tax professional.
