Received a CP518B Business Notice?

Receiving a CP518B Business Notice

The CP518B notice, also known as the Final Reminder Notice, is sent when the IRS has no record of your previous tax returns. It’s essentially the last warning before the IRS takes more aggressive steps to assess your tax liability. This can lead to penalties, interest, and even delayed refunds if you don’t act promptly.

What About CP518 Notice?
CP518 without the B is essentially the same notice but sent to an Individual instead of a Business.

How the notice would look like

The CP518B notice typically features the following elements:

• Notice Code: CP518 prominently displayed at the top, indicating the type of notice.
• Sender: The IRS logo and contact information, ensuring legitimacy and providing guidance for responses.
• Important Sections: Key components include a summary stating the IRS has no record of your filed tax returns, a request for immediate filing or an explanation, and a response form that allows you to clarify your filing status.
• Response Form: Attached to the notice would be a response form for you to explain why you're filing late or why you don't have to file.

The layout of the notice is straightforward, using bold texts and bullet points to highlight critical actions you must take.

What the notice or form is about

A CP518 notice is an official letter from the IRS informing you that they have no record of your tax return. You’re receiving this because:

• You did not file a tax return by the due date.
• The IRS previously sent you notices requesting that you file, but they haven’t received any response.

This notice is the final reminder—meaning if you don’t act now, the IRS may take further action against you.

What are consequences

Failing to address the CP518B notice in a timely manner can lead to several consequences:

• Estimated Tax Assessment: If you don’t file, the IRS may estimate your tax liability for you. This could result in a higher tax bill than what you actually owe.
• Penalties and Interest: Failing to file on time can result in penalties and interest charges, which accumulate the longer you wait.
• Delayed Refunds: If you’re owed a refund for any year, it may be held until you file your missing return.

What are the actions to be taken

Here’s what you should do as soon as you receive the CP518 notice:

Step 1: Analyze the Accuracy of the CP518 Notice

Before you take any action, confirm whether the IRS notice is correct:

• Check Your Records: Review your personal tax documents to see if you’ve already filed the return in question.
• Verify Filing Information: Ensure that your return was submitted using the correct name, Social Security Number, or Employer ID Number (EIN). Sometimes errors in these details can trigger a CP518 notice.
• Recent Filings: If you filed within the last 8 weeks, the IRS might still be processing it. In this case, there’s a chance the notice was sent in error.

If everything checks out but you’re sure you filed on time, proceed to dispute the notice.

Step 2: Dispute the CP518 Notice (If Necessary)

If you believe the CP518 notice is incorrect:

• Call the IRS at the toll-free number on the top of your notice. Have your tax return copy and supporting documents ready.
• Submit the Response Form included with the notice. Attach a signed copy of your tax return if you’ve already filed it. Use the envelope provided, or fax your response to 855-800-5944.
• Explain the discrepancy clearly—whether it’s a filing delay, a name change, or other errors that may have caused confusion.

It is often at this stage where business owners prefer to hand over the back and forth to us. Let us communicate with the IRS - book a call here.

Step 3: File Your Missing Tax Return (If the Notice is Correct)

If you’ve verified that you indeed missed filing your tax return, it’s time to act quickly:

• Gather All Required Documents: Complete your tax return with all necessary schedules.
• File Immediately: Mail your completed return using the envelope provided by the IRS, or fax it securely to 855-800-5944 using a reliable online fax service.
• Complete the Response Form: Include details like:
  • Why you’re filing late.
  • If you believe you don’t need to file.
  • If you’ve already filed under a different name or EIN.

Filing as soon as possible helps stop penalties and interest from accruing.

What is the time frame to resolve?

While the IRS may not specify an exact deadline on the notice itself, it’s crucial to act as soon as possible to minimize potential penalties and interest. If you file a paper return, the IRS usually takes 6 to 8 weeks to process it. However, processing times can stretch to 12 weeks or more.

Faxed returns might be slightly quicker but still take anywhere from 4 to 6 weeks.

Call Stellar to help execute this for you

Dealing with tax issues can be stressful and complicated, but you don't have to face it alone. Reach out to Stellar for expert assistance in handling your CP518 notice. Our team can help simplify the process, ensure all necessary forms are completed accurately, and guide you on the best course of action to resolve your tax situation efficiently.

Find further assistance here

For further assistance and information on how to deal with notices like the CP518I from the IRS, visit our service page at Got a Notice.

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