The IRS sends Form 15103 to taxpayers who have unfiled returns. You may receive this form with CP59, CP516, or another non-filer notice. You can use this form to confirm that you have already filed a return or to explain why you’re filing late or why you are not required to file. If none of those reasons apply, you should file your unfiled returns as soon as possible to avoid other issues.
To help you out, here is an explanation of how to complete Form 15103 and an overview of other steps you may need to take if you receive a non-filer compliance notice.
Why the IRS Sends Form 15103
If the IRS discovers that you have unfiled returns, it may send you a letter about the unfiled returns along with Form 15103. This form allows you to explain to the IRS why you don’t need to file or to state that you already filed. You can also use this form to alert the IRS that the recipient of the notice is deceased.
As of 2024, the IRS has announced plans to start sending non-filer notices and Form 15103 to thousands of taxpayers. For the last few years, the agency has not been sending out these notices, as many automated notices and collection actions were paused due to the effects of the COVID-19 pandemic. In particular, the IRS is trying to reach over 125,000 high-income filers who have not filed since 2017, and the agency plans to send out 20,000 to 40,000 CP59 notices per week during parts of 2024.
How to Complete Form 15103
At the top of the form, note your Social Security or Tax ID number, your name, and contact details. Then, use the rest of the form to explain the situation as follows:
- Already filed – If you have already filed, tick the box near the top of the form, and if possible, attach a copy of the return that you filed.
- Deceased – Note the taxpayer’s date of death, and also, note if you have already filed Form 1041 (Income Tax Return for Estates and Trusts) instead of the individual income tax Form 1040.
- Don’t need to file – Go to the middle of the form. Note your filing status and special situations that apply to your situation, such as being blind, over the age of 65, claimed as a dependent, or not a US citizen or permanent resident. Then, note your income and your reason for not filing.
At the bottom of the form, you should also note special circumstances. In particular, note if you have a credit from a prior year or estimated taxes that you want applied. Also, note if you would like to receive a tax refund as a check. In both cases, you must file a tax return to get the past credit applied or to claim a refund for the year in question.
Finally, sign the form and send it to the IRS at the address noted on the notice you received or fax it to the IRS.
What if You Were Supposed to File and Haven’t?
If you were supposed to file, you can simply fill out the top portion of Form 15103. Then, you can prepare a tax return and send it to the IRS with this form. If you cannot prepare a tax return by the deadline noted on the letter, contact the IRS and let them know that you are working on your tax return.
A tax attorney can help you deal with your unfiled returns. If you have lost your documents, they can help you get wage and income transcripts from the IRS. If you’re a business owner or self-employed, a tax attorney or accountant may be able to help you reconstruct your records so that you can generate a Profit-and-Loss statement to complete your tax return.
What If You Don’t Return Form 15103 to the IRS
If you ignore the non-filer notice and you don’t return this form, the IRS may decide to file a tax return for you, called a substitute for return substitute for return (”SFR”), using income information that the IRS has received from third parties, but they don’t include any deductions. As a result, most SFRs overstate taxpayer liability.
Once the IRS generates an SFR, it will send you a CP3219 Notice. Also called a deficiency notice, this letter gives you 90 days to respond (150 if mailed out of the country). If you don’t respond by that time, the IRS will assess the tax and start collection actions. Even if you weren’t supposed to file, this can still happen, and dealing with an SFR is much more difficult than using Form 15103 to explain why you didn’t need to file.
At this point, you can respond by filing a correct tax return, which will supersede the SFR. Otherwise, you may be able to write a letter saying that you weren’t required to file.
What if You Can’t Afford to Pay Unfiled Taxes
So, whether you’ve just received Form 15103 in the mail or are already facing a deficiency notice, you may be worried about a tax bill that you cannot afford to pay. First, be aware that the longer you wait, the worse the situation will get. When you don’t file, the IRS can add steep non-filing penalties to your account and late payment penalties. If they max out, these penalties can get up to almost 50% of your balance.
The agency will also add interest to your account, which will be dated back to the due date of the original return. Additionally, interest will accrue on the penalties that you incur.
However, once you file or accept the assessment listed in the deficiency notice, you can take advantage of a variety of different payment plans. The IRS allows most taxpayers to make monthly payments for up to six years through an installment agreement. The IRS also allows qualifying taxpayers to settle for less than owed through an offer in compromise. When you contact a tax attorney, they will discuss the best options for your situation.
Get Help With Unfiled Tax Returns
If you need assistance filing Form 15103 or catching up on your past-due tax returns, we can help. At Wiggam Law, we specialize in helping businesses and individuals deal with state and IRS tax problems.
Act now because the longer you wait, the more penalties will accrue on your account. Additionally, if you have refunds due from unfiled tax returns, you only have three years to collect them, and refunds can be an effective way to offset tax debt from other years. Call us at (404) 233-9800 or fill out our online consultation form to schedule a meeting with one of our tax attorneys today.