Spousal Issues

Chapter 5

IRS Unfiled Past-Due Returns

¶500 INTRODUCTION

If you want to:
Understand IRS non-filer enforcement programs and how to interact with the IRS in resolving past-due returns.	¶501
Follow the seven steps needed to resolve past due returns with the IRS.	¶502
Use templates to assist with getting information on past-due returns and filing compliance.	¶503
Use IRS forms and publications for resolving unfiled past-due returns.	¶504
Review common IRS notices related to unfiled past-due returns.	¶505

Key Highlights:

• Millions do not file a required return each year; based on income information reported to the IRS (W-2s and 1099s), in 2022, there were at least 11.3 million taxpayers who did not file a required return.
• Taxpayers who do not file can face delinquency investigations; although, IRS non-filer enforcement has been sporadic over the past years, many taxpayers will receive non-filing notices and many projected balance-due taxpayers will be pursued for non-filing.
• The IRS pursues many of the projected balance due taxpayers; if a delinquent taxpayer does not file, the IRS can file a return for the taxpayer (called a substitute for return (SFR)) and proceed with collection of the liability.
• Filing compliance generally looks back over the past six years; IRS Policy Statement 5-133 generally requires individual taxpayers to only file the prior six years of returns to be considered filing compliant.
• IRS transcripts help with preparing prior year returns; taxpayers can request income information on their IRS wage and income transcript to help in filing an accurate prior year return. Wage and income information is available from the IRS for the past ten tax years.
• Special filing procedures may apply; late-filed returns may require special processing with the IRS depending on prior enforcement activity.

Figure 5-1
Unfiled Past Due Returns Solution Grid

What’s New for 20254?

• Transcript requests: to file prior year returns, taxpayers and tax pros will need to obtain wage and income and account transcripts from the IRS to file an accurate return to the proper location. Tax pros will need to have an e-Services account and contact the IRS and receive transcripts immediately or have the taxpayer obtain them. Taxpayers and tax pros can obtain unredacted wage and income transcripts for the current and past nine years by directly contacting the IRS. In addition, tax pros can use the IRS e-Services Transcript Delivery System to obtain unredacted wage and income transcript information. IRS processing of prior year returns has returned to normal timeframes after the pandemic-affected years. Taxpayers can now expect prior year returns to be processed in 4-7 months, depending on the status of compliance enforcement involved. Tax pros can e-file the current and past two tax years if no IRS enforcement is present for the tax year in question. Taxpayers usually have to paper file prior year returns as most DIY tax software does not allow for prior year e-filing.
• The IRS continues to pactively pursued high income non-filers in 2024 and 2025 (especially those with income above $100,000, i.e., “high-income non-filers”) for enforcement.
• The IRS restarted campus non-filer enforcement in February 2024. [IR-2024-56 (Feb. 29, 2024)] The initial targets are individual nonfilers who made more than $400,000 for years 2017-2021. More targets will follow throughout the year.
In 2024, the IRS issued over 1.5 million routine nonfiler notices (CP59s) to all taxpayers. However, the IRS has not conducted mass nonfiler enforcement through its substitute for return program (only 308,568 in 2024, based on Letter 3219 assessment notices). Most nonfiler enforcement has been through local IRS collection (revenue officers) despite the growing nonfiler tax gap (as of October 2025, the nonfiler tax gap – as measured by the 2022 tax year – is at $63 billion a year).

What’s Covered in This Section?

• IRS non-filer enforcement programs and how to effectively resolve IRS delinquent return investigations.
• The number of returns that must be filed to be considered IRS filing compliant.
• Step-by-step approach to resolving an unfiled past-due return.
• How to obtain IRS account information to file accurate and acceptable past-due returns.
• How to request penalty relief from the failure to file penalty for late-filed balance-due returns.
• How to request reconsideration when the IRS files a substitute for return for the taxpayer.

What’s Not Covered — and Why?

• Fraudulent failure to file: taxpayers who willfully do not file to evade taxes should consult with an attorney to resolve past-filing and payment with the IRS.
• International late filing compliance: taxpayers with international late filing returns and information reporting (i.e., Foreign Bank Account Reporting) should consult with an attorney to determine the best avenue to get into compliance.

Most Common Taxpayer and Tax Professional Actions Taken When Addressing Late Filed Return Issues

• Researching filing discrepancies with the IRS.
• Obtaining transcripts to file accurate late returns with the IRS.
• Preparing and filing prior year returns and working with the IRS unit that processes and accepts late-filed returns.
• Requesting abatement of the failure to file penalty using reasonable cause and first-time abatement.
• Requesting SFR reconsideration on a prior year return prepared and assessed by the IRS.

When to Get an Expert Involved

• Preparing complex prior year returns: tax professionals have prior year software and knowledge of tax laws for prior year returns.
• Expedite issues: taxpayers who are facing imminent collection or SFR assessment should involve a tax professional to navigate the IRS and expedite the process.
• Unfiled returns with large balances owed: taxpayers who will have a large balance owed should consult a tax expert who can assist in a collection alternative.
• Fraud penalties: when there are indications of fraud, taxpayers should always consult a qualified attorney.

Professional Assistance Fees

• Past-due return preparation: fees are generally slightly larger than a normal tax prep fee. If the taxpayer has multiple years to file, the fees may be lower, charged as a bulk rate.
• Hourly: Range from $80-$500 an hour for an EA, CPA, or tax attorney to contact the IRS, obtain transcripts, request a hold, and monitor status of return acceptance.
• Flat fee: National firms can charge flat fees from $500+ depending on other issues present and whether the taxpayer has prior SFR activity and/or balance due. Additional costs are charged for return preparation.
• No fee: Low-income taxpayer clinics can assist taxpayers free of charge. However, LITCs do not generally file tax returns and IRS Volunteer Income Tax Assistance (VITA) providers do not provide prior-year tax preparation.

Closely Related Issues

• Penalties: late-filed, balance-due returns will have a failure to file/failure to pay penalty assessment in which the taxpayer should consider requesting non-assertion/abatement, depending on the circumstances.
• Collection: balance-due taxpayers will need to pay or obtain a collection alternative with the IRS.

Table 5-1Time to Complete Estimates for Common Unfiled Past Due Solutions/Actions

Late-Filed Return Action	Estimated Hours to Complete	Average Duration Estimate
Obtaining tax history and transcripts from the IRS to evaluate year to file and income information to be reported on the return	\<1 hour (best to call IRS by phone)	one day–three weeks (if transcripts come by mail)
Obtaining a collection or SFR hold with the IRS while preparing the past-due return	1 hour	one day
Preparing and filing prior year returns	Depends on complexity of return	Up to 4-7 months for the IRS to accept paper returns if there is non-filing enforcement activity
Request first-time abatement for failure to file penalty (post-assessment)	\<1 hour (by phone or online)	three weeks for the abatement to be recorded on the taxpayer’s IRS account
Reasonable cause abatement request for failure to file penalty	3-5 hours (request in writing)	12-16 weeks for IRS determination letter; 96-12 24 months or more added if an appeal is required
SFR reconsideration request	1-3 hours	Can take 4-7 months, more time is required if the IRS does not accept the initial return

¶501 OVERVIEW OF UNFILED PAST-DUE TAX RETURNS

This section covers the IRS enforcement of non-filers and key points in resolving non-filing situations.

	Topic	Covers
¶501.01	Introduction to Unfiled Past-Due Tax Returns	Key points to know about IRS non-filing enforcement and filing past-due returns.
¶501.02	Relevant IRM Sections for Unfiled Past-Due Tax Returns	IRS non-filer programs, procedures, and guidance provided to IRS employees when pursuing non-filers and processing prior year returns.
¶501.03	IRS Forms/Publications	IRS forms used in responding to the IRS for non-filing inquiries.
¶501.04	Frequently Used IRS Penalty Phone Numbers for Unfiled Past-Due Tax Returns	IRS phone contacts often used when handling unfiled past-due returns.
¶501.05	Common IRS Notices and Taxpayer Notifications for Unfiled Past-Due Tax Returns	Notices taxpayers receive in the non-filing enforcement process.
¶501.06	Useful IRS Website Resources and Online Tools to Help with Unfiled Past-Due Tax Returns	Websites and IRS online information access to help with filing prior year returns.
¶501.07	Key Terms and Definitions for Unfiled Past-Due Tax Returns	IRS terms used in non-filing programs.
¶501.08	Return Filing Requirements and Filing Prior Year Returns	IRS procedures to file past-due returns.
¶501.09	Penalties for Non-filing and Late Filing	Late filing penalties proposed by the IRS and abatement options and procedures.
¶501.10	Statute of Limitations	The time period for taxpayers with late returns to request a refund and for the IRS to collect on late balance due returns.
¶501.11	IRS Non-filer Enforcement Programs	The primary IRS programs used to enforce non-filing.
¶501.12	IRS Non-filer Enforcement: Substitute for Returns (SFRs)	IRS process of filing a tax return for the taxpayer who does not voluntarily file.
¶501.13	Identifying Non-filing	How-to discover non-filing by contacting the IRS or through IRS transcripts.

Other helpful subsections:

	Topic	Covers
¶102	IRS Transcripts	How-to obtain IRS transcripts needed to accurately file past-due returns.
¶402	Failure to File Penalty	Late filing abatement options and how-to request penalty abatement for the failure to file penalty.
¶302	Understanding IRS Collection Alternatives	Available IRS Collection alternatives when a taxpayer files a past due return and owes the IRS back taxes.

Key Highlights:

• Taxpayers who are required to file a tax return and do not do so can face various IRS non-filing compliance enforcement, ranging from soft letters requesting a return to criminal prosecution.

• The IRS can file a tax return for a non-filer, called a substitute for return (SFR), and proceed to collect on the SFR’s assessed tax, penalties, and interest.

• Taxpayers filing back returns should do their due diligence to file an accurate return. Late filers may have to follow special filing procedures based on prior IRS enforcement activity.

• Taxpayers who file a late, past-due return are assessed a failure to file penalty. Taxpayers can request non-assertion or abatement of this penalty, mainly utilizing a reasonable cause argument or first-time abatement.

Introduction to Unfiled Past-Due Tax Returns

Each year, the IRS identifies millions of individual taxpayers who are required to file, but do not do so. Taxpayers who are required to file a tax return and do not do so by the deadline need to immediately file their late returns. Taxpayers who do not file may receive letters from the IRS requesting voluntary return filing. If a taxpayer does not file, he can face enforcement action.

In recent years, the IRS has not aggressively pursued non-filers due to limited resources available at the IRS to enforce non-filers. [TIGTA Report, A Significantly Reduced Automated Substitute for Return Program Negatively Affected Collection and Filing Compliance, (Sept. 29, 2017)] IRS has identified at least 11.3 million potential identified non-filers each year. [IRS FOIA Response 2023-2023-00580, Nov. 14, 2022] In 2018, the IRS started to increase its return delinquency inquiries to potential non-filers. [IRS Data Book for 2017-2019, Table 22] During the COVID-19 pandemic period, the IRS only sent 858,471 and 178,218 delinquent return notices in 2021 and 2022, respectively. This was largely due to return processing backlogs that did not allow the IRS to accurately determine which returns were not yet filed prior to sending a notice inquiry. [IRS FOIA Response 2023-2023-00580, Nov. 14, 2022)] In 2022, the IRS suspended all initial delinquent return notices (CP59). [https://www.irs.gov/newsroom/irs-continues-work-to-help-taxpayers-suspends-mailing-of-additional-letters and IRS FOIA Response 2024-04444, 1-3-2024] IRS restarted campus nonfiler enforcement in February 2024. [IR-2024-56 (Feb. 29, 2024)] The initial targets are individual nonfilers who make more than $400,000 for years 2017-2021. More targets will follow throughout the year. From October 1, 2023, to September 30, 2024, the IRS sent 1.54 million initial delinquent return notices (CP59) to nonfilers [IRS FOIA 2025-00175, 10-17-2024] In that same time period, substitute for return notices (CP515, CP516, and CP518 subsequent notices) was limited to 471,069. In short, IRS nonfiler enforcement has been very limited and sporadic since 2017 despite the nonfiler tax gap growing to $63 billion a year (measured in 2022 return).

Practice Tip: The IRS is aware of taxpayers who are required to file but do not do so by matching information returns received (i.e., Forms W-2, 1099) with their filing history. The IRS also uses other information, such as past filing history and those filing an extension to file, to establish a filing requirement and question a taxpayer who does not file.

Taxpayers who need to come back into filing compliance need to address the following questions:

1. For each unfiled year, is there a filing requirement?
2. How many prior tax years need to be filed?
3. Will the taxpayer be barred from receiving a refund?
4. What penalties will be imposed for filing late and what penalty relief is available?
5. What due diligence is needed to file accurately and what information is available to help with filing an accurate return that passes IRS screening for acceptance?
6. Is there any non-filing enforcement by the IRS and what procedures need to be followed?
7. If there is an amount owed, what options for payment are available, and how will/how long will the IRS collect on the balances?
8. Is there also a state income tax filing requirement that needs to be satisfied?

Unfiled/Past-Due Return Key Points

Taxpayers need to understand the following key points and best practices when addressing unfiled past due returns:

1. Individuals usually only need to file the last six years to be considered filing compliant: the IRS policy to be filing compliant generally means filing the most current and past six years’ returns. [IRS Policy Statement 5-133 (8-4-2006)]
2. The IRS does not pay old refunds: if taxpayers file more than three years after the return due date, they cannot obtain a refund of overpaid taxes.
3. Taxpayers need to do their due diligence to file accurate back returns: it is essential to prepare an accurate return that matches IRS records. Taxpayers should trace their income history with regard to back returns. Taxpayers should also request their wage and income and account transcripts. These transcripts will provide income information and other activity, such as withholding, estimated tax payments, and other information needed to file an accurate return. Without this match, the IRS can question the accuracy of the taxpayer’s return.
4. The IRS will screen back returns for accuracy: at a minimum, the IRS will review the Forms W-2, 1099, and other information returns to see if they are accurately reported on the return. Large, unusual, and questionable items may be suspect and even sent for audit if the IRS believes the return has material inaccuracies.
5. Refunds may be on hold: the IRS may freeze refunds on taxpayers who have unfiled returns. These refunds are released when the taxpayer becomes filing compliant.
6. The failure to file and pay penalties apply if the taxpayer files and owes: taxpayers who file late face a stiff penalty for failure to file (up to 25%). They also incur a failure to pay penalty on balances owed.
7. The IRS can file a return for a non-filer and start collection on the balance owed: this return is called a “substitute for return” or “SFR.” After a series of letters to request that the taxpayer voluntarily file, the IRS may proceed to file a return for the taxpayer (the SFR). Once the SFR is filed by the IRS, collection begins on the unpaid assessment.
8. Filing back returns may require special processing procedures: the IRS may take longer to accept back tax returns. Taxpayers receiving a delinquent-return notice or an SFR in the past may have to follow special filing procedures. For example, as regards an SFR, the taxpayer needs to file the replacement return with the IRS SFR Reconsideration Unit.
9. Filing compliance is often a prerequisite action to solve other tax issues: taxpayers who have not filed all tax returns are viewed as noncompliant. As such, other post-filing solutions are often not available until the taxpayer becomes filing compliant. For example, a taxpayer cannot enter into an installment agreement on balances owed or obtain first-time penalty abatement if he is not in filing compliance.
10. Filing compliance enforcement: both IRS Collection and IRS Examination can initiate and resolve non-filing compliance enforcement. Most SFRs originate in IRS Collection. However, many high-income non-filers (income > $100,000) and business taxpayers are enforced by IRS Examination. It is important to understand which unit has enforced the noncompliance. The taxpayer must resolve the non-filing with the unit that started the compliance enforcement.

Relevant IRM Sections for Unfiled Past-Due Tax Returns

Non-filing is generally enforced by the IRS in its Examination (Part 4 of the IRM) and Collection (Part 5 of the IRM) functions. When handling non-filing issues, most individual taxpayers and their tax professionals will refer to these IRM Sections:

Table 5-2

IRM Section	Topic	What It Covers
1.2.1.6.18	IRS Policy Statement 5-133	How the IRS will enforce filing of delinquent returns.
4.4.9.6	Substitute for return	IRS Examination Division procedures for IRS filing a tax return for a taxpayer who does not voluntarily file.
4.12.1	Non-filed returns	IRS Examination Division enforcement programs and processes to enforce filing of delinquent returns.
4.13.15	Exam SFR reconsideration	Procedures used by IRS Examination Division when a taxpayer disputes an SFR filed by an Exam Division.
5.1.15	Abatements, reconsiderations, and adjustments	IRS procedures and requirements for SFR reconsideration originated by IRS Collection.
5.18.1	Automated substitute for return (ASFR) program	IRS Collection Division procedures for IRS filing a tax return for a taxpayer who does not voluntarily file.
5.19.2	Individual Return Delinquency	IRS individual non-filer enforcement procedures and application of IRS Policy Statement 5-133.
20.1.2	Failure to file/failure to pay penalties	Procedures for assessment and abatement of the two of the most common penalties.
25.1.7	Fraud Handbook: Failure to File	Provides guidance on how the IRS pursues civil and criminal fraud on non-filers.
25.12.1.2	How to Identify Delinquent Return Refund Hold	Conditions and procedures when taxpayer’s refunds are held due to outstanding delinquent returns.

IRS Forms/Publications

Table 5-3

Form	Description
Form 4506-T	Request for Transcript of Tax Return
Form 15103	Form 1040 Return Delinquency (response form)

There are no specific publications produced by the IRS to assist with unfiled, past-due returns.

Frequently Used IRS Penalty Phone Numbers for Unfiled Past-Due Tax Returns

Table 5-4

IRS Hotline	Phone Number	Hours/Availability
Individual Accounts (taxpayer hotline)	(800) 829-1040	M-F, 7AM-7PM, local time
Business and Specialty Accounts (taxpayer hotline)	(800) 829-4933	M-F, 7AM-7PM, local time
Taxpayer Advocate National Hotline (central intake)	(877) 777-4778	M-F, 7AM-7PM, local timeLocal offices: 8AM-4:30PM
Practitioner Priority Service (tax professionals only)	(866) 860-4259Option #2: Individual accountsOption #3: Business accounts	M-F, 7AM-7PM, local time
Automated Substitute for Return Unit	(866) 681-4271	M-F, 10AM-5PM, local time (varies throughout the year)
Refund Hold Hotline	(866) 897-3315	M-F, 10AM-5PM, local time (varies throughout the year)[IRM 25.12.1.12.1 (7-17-2015)]

Common IRS Notices and Taxpayer Notifications for Unfiled Past-Due Tax Returns

Table 5-5

IRS Notice	Description
CP59, You didn’t file a Form 1040 tax return	Initial return delinquency notice (issued after each tax year in November and the following February). [IRM 5.19.2.3 (2-15-2022) and IRM 5.19.2.6.2.1 (1-16-2015)]
CP63, We Have Held Your Tax Refund [IRM 5.19.2.6.4.5 (11-28-2022)]	CP63 is issued to inform the taxpayer that their refund is held as a result of an IRS Collection function determination of a potential delinquent return liability. The notice contains the Refund Hold toll-free number: 1-866-897-3315. [IRM 25.12.1.6 (11-24-2009)]
CP80, Unfiled Tax Return – Credit on Account	Estimated tax payments and other credits are on the account for an unfiled year. [IRM 21.4.1.4.1.1 (3-15-2024) and IRM 21.2.4.3.44.2 (10-02-2023)]
CP88, Taxpayer Delinquency Investigation (TDI) Refund Hold[IRM 5.19.2.6.4.5 (11-28-2022)]	Refund hold initiated by IRS Examination as a result of a delinquent return. [IRM 25.12.1.12.2 (12-19-2017)] Taxpayers are given the 1-800-829-0922 or 1-800-829-8374 account inquiry hotlines to resolve the notice.
CP515, You must file your 20XX tax return	Initial return delinquency notice (if letter CP59 goes undelivered). [IRM 5.19.2.6.1.1 (4-23-2021)]
CP516, Reminder notice: We still have no record that you filed your prior tax return/returns	Second notice to file a past due return.
CP518, You must file your 20XX tax return (final notice)	Final return delinquency notice — issued eight weeks after the CP59 (if no return is received). [IRM 5.19.2.3 (2-15-2022)]
Letter 1862, Initial contact letter SFR Program	SFR contact letter from the Examination Division that includes the Form 4549 Examination Report with the additional assessment and penalties proposed.
Letter 2566, 30-day letter (no refund hold)	The letter informs the taxpayer that the IRS has not received a tax return for the tax year shown and includes a proposed tax assessment for the taxpayer. The letter advises taxpayers that within 30 days they must do one of the following: send their signed tax return, consent to the proposed tax assessment or explain why they believe they are not required to file.
Letter 2566R, 30-day letter (refund hold)	Same as Letter 2566. However, the taxpayer refunds are on hold until returns are filed.
CP 3219N, Statutory Notice of Deficiency – 90-Day Letter	SFR 90-day letter. The taxpayer is given another 90 days to respond or to seek judicial review before the proposed tax is assessed. The proposed tax computed by the IRS may be higher than what would actually be owed because the IRS cannot make an assessment that includes some exemptions, deductions, or credits the taxpayer must claim on a filed return. At this point, the taxpayer needs to file the return or the SFR proposed amount will be assessed in 90 days.

Useful IRS Website Resources and Online Tools to Help with Unfiled Past-Due Tax Returns

Table 5-6

Website	URL	Description
IRS Filing Past Due Tax Returns	https://www.irs.gov/businesses/small-businesses-self-employed/filing-past-due-tax-returns	IRS guidance on filing past-due returns.
IRS Where to File Addresses	https://www.irs.gov/filing/where-to-file-addresses-for-taxpayers-and-tax-professionals-filing-form-1040	IRS addresses to file past-due paper returns (non-SFR returns).
IRS Penalty Relief website	https://www.irs.gov/payments/penalty-relief	Reasonable cause arguments for failure to file penalty relief.
IRS Get Transcript/Get Your Tax Record	https://www.irs.gov/individuals/get-transcript	Taxpayer IRS online account that provides transcripts online or request by mail.

Key Terms and Definitions for Unfiled Past-Due Tax Returns

Table 5-7

Term	Definition
Account transcript (AT)	An IRS record of transactions on a taxpayer’s filed return or assessment for each form/tax period. Included in the AT are the return filing dates, payments, assessments, and certain IRS enforcement activity, including some notices sent to the taxpayer.
Automated Substitute for Return Program (ASFR)	An IRS Collection unit that files a return for a taxpayer who does not voluntarily file a return. The return filed is called a “substitute for return” or “SFR.”
Delinquent return	A tax return that a taxpayer does not file with the IRS by the due date (including extensions) for any year in which a filing requirement exists.
Failure to file penalty (FTF)	A penalty for filing a tax return after the due date. The penalty is 5% per month, up to 25%. In the case of any return required to be filed in 2024, the amount of the addition to tax under IRC §6651(a) for failure to file an income tax return within 60 days of the due date of such return (determined with regard to any extensions of time for filing) will not be less than the lesser of $510 or 100 percent of the amount required to be shown as tax on such return. [Revenue Procedure 2023-34, Section 3.53]
First-time penalty abatement (FTA)	A one-time IRS administrative penalty relief waiver for the failure to file/pay/deposit penalties for taxpayers with a clean compliance history.
High-income non-filer	An individual taxpayer who has over $100,000 in income and does not file a tax return. These taxpayers are priority for IRS nonfiler enforcement. [IRM 5.19.2.8.1 (11-6-202150]
Non-filer	Taxpayers who have been identified as liable to file a tax return but who have not filed a tax return by the return due date or extended due date.
Policy Statement 5-133	IRS policy that states filing compliance, for individuals, consists of filing the current and past 5 years of required tax returns. The Policy also provides for managerial approval requirements to override as well as exceptions to the policy. The policy does not apply to business taxpayers.
Reasonable cause (RC)	Any reason which establishes that a taxpayer used ordinary business care and prudence to meet their federal tax obligations but were nevertheless unable to do so.
Refund Hold	An IRS freeze on a taxpayer’s refund due to a projected balance owed for an unfiled return or probable future tax assessment.
Refund Statute of limitations and Refund Statute Expiration Date (RSED)	For penalty relief, the taxpayer generally has three years from the due date of the return or two years after the penalty has been paid to request abatement and a refund of the penalty paid.
Return delinquency (RD)	The first step of the IRS process in enforcing an unfiled return. The IRS may have sent these taxpayers IRS notices to request a return: e.g., CP59, CP515, or CP516.
Substitute for Return (SFR)	An IRS assessment of tax, interest and penalties based on information submitted by payers (W-2s, 1099s, etc.) or other information obtained (e.g., from third parties) when a taxpayer does not voluntarily file a return.
Taxpayer delinquency Investigation (TDI)	A more serious IRS late filing investigation that usually results in an SFR filing if the taxpayer does not voluntarily file a return. These taxpayers usually receive IRS notice 518 or other enforcement notice notifying them that they are in a TDI.
Wage and Income Transcript (W\&I transcript)	IRS transcript that provides a taxpayer information returns (i.e., Forms W-2, 1099, 1098, 5498, etc.) filed under their taxpayer identification number for each tax year. The IRS keeps these transcripts for the past ten years. These transcripts are helpful in filing prior year returns when the taxpayer does not know all of their income sources.

Return Filing Requirements and Filing Prior Year Returns

Each taxpayer’s situation determines whether there is a filing requirement. Most often, income levels and certain type of tax transactions dictate an individual taxpayer’s filing requirements.

Individual tTaxpayers who have not filed in the past may not have to file more than the past six years to become “filing compliant” with the IRS. IRS Policy Statement 5-133 (8-4-2006), Delinquent Returns—Enforcement of Filing Requirements, provides a general rule that taxpayers must file six years of back tax returns to be in good standing with the IRS. [IRM 1.2.1.6.18 (8-4-2006)] The policy also states that IRS management would have to approve any deviation from that rule.

IRS rules state that the beginning of the calendar year sets the six-year rule. For example, January 1, 20254, sets the six-year rule to require only 20198-20243 to be filed for “filing compliance.” [IRM 5.19.2.6.4.5.3.1 (4-23-2021)] Note: the IRS has removed or redacted many of its Policy Statements due to a 2025 Executive Order.

Figure 5-2

Example 5-1 Cort Young has not filed a return in ten years. He contacts the IRS on March 1, 20254, and asks what returns need to be filed. The IRS informs Mr. Young that he needs to file the past six years (20198-20243) to be compliant.

Practice Tip: In practice, the IRS interprets the past six-year return filing requirement inconsistently. If the deadline to file the most current year has not passed (including filing extensions), the IRS often requests the current year return plus the previous six years. For example, if a taxpayer asks the IRS on March 10, 20254 (i.e., before the 4/15 filing deadline), the IRS may misinterpret the rule to require the current year return (20243) and the past six years (20187-20232). The beginning of the calendar year sets the six-year rule. In the example, after January 1, 20254, the prior six years would be 20198-20243. Taxpayers should request the IRS to review IRM 5.19.2.6.4.5.3.1 (4-23-2021) for the proper interpretation of the six-year rule.

Sometimes, IRS managers will require tax returns from even further back than six years, depending on:

• The degree of flagrancy.
• A prior history of noncompliance.
• The impact on future voluntary compliance.
• The existence of income from illegal sources.
• Whether there is minimal or no tax due.
• The IRS’s costs to secure the return versus anticipated tax revenue.

In practice, the following are the most common reasons the IRS requires returns from more than six years back:

1. There’s a large potential liability: the IRS may extend the return requirement if the taxpayer’s wage and income information (found on wage and income transcripts) indicates a potentially large tax liability for the older, unfiled years. The most common red flags are Forms 1099-MISC, 1099-NEC, and 1099-K filings that indicate miscellaneous income, property business sales, and large wages income with no withholding.
2. There are business returns involved: the six-year rule does not apply to entity business returns (Form 1120 series, 1065). The IRS will closely scrutinize Form 1040 business filer returns for purposes of filing more than six years, for several reasons:

• The IRS does not like to put one business at a competitive advantage over another by waiving potential amounts owed.
• Businesses often have unknown activity with potentially large balances owed.
• Businesses are not subject to much reporting via information returns (W-2/1099, etc.).
• The IRS knows that businesses have the largest potential for noncompliance.

3. Taxpayer non-filing and/or non-payment is assigned to the Collection Field function: delinquent return investigations can involve local field collection personnel (revenue officers) who perform in-depth investigations on non-filing and collection. Because they often handle business and payroll collection, revenue officers may require more than six years of back tax returns. For most individual cases when taxpayers do not have a revenue officer, the IRS usually accepts the past six years of returns to put clients in good standing with the IRS.

Taxpayers can contact the IRS directly to understand the number of back years that must be filed to be filing compliant.

Practice Tip: Tax professionals can easily find out which returns are required by contacting the IRS Practitioner Priority Service (PPS) with an authorization (Form 2848 or 8821). Taxpayers must call the number on the notice or the general Form 1040 hotline and speak with an IRS representative about their filing requirements. If the IRS requests more than the past six years, the taxpayer should question the reason why the IRS is deviating from its policy in PS 5-133. Some IRS representatives may not know the rule and may ask for years prior to the six-year requirement.

Taxpayers may also want to file returns for year before the six-year requirement if they want to lower the liability owed or settle in an Offer in Compromise.

Practice Tip: Substitute for returns filed by the IRS are considered filed returns for purposes of IRS “filing compliance.” Often taxpayers who have a balance owed as a result of a return filed by the IRS (the SFR) will want to file if there is a lower amount owed.

Penalties for Non-filing and Late Filing

Taxpayers who file late and have a balance due can face significant monetary penalties:

• Failure to file penalty (5% per month, maximum of 25%).
• Failure to pay penalty (0.5% per month, maximum of 25%); combined with the failure-to-file penalty, together they can reach a maximum of 47.5%.
• Fraudulent failure to file penalties triple the normal failure to file penalty — increasing the maximum penalty from 25% to 75%.

Taxpayers who willfully fail to file can also face criminal sanctions under Internal Revenue Code section 7203.

Practice Tip: Criminal failure to file cases are rare. However, taxpayers and tax professionals should take non-filing seriously and quickly work to get the taxpayer into filing compliance. The IRS usually provides taxpayers several opportunities to voluntarily file a tax return. Many IRS criminal failure to file cases involve taxpayers who are also trying to evade payment of tax. Higher income non-filers, those trying to hide income and assets, and those with repeat history of non-filing are more likely to encounter IRS criminal investigation for non-filing.

On August 24, 2022, the IRS announced failure to file penalty relief for returns filed before September 30, 2022. Taxpayer also can obtain partial failure to file penalty relief for returns filed after the September 30, 2022, full relief deadline. [IRS Notice 2022-36 at https://www.irs.gov/pub/irs-drop/n-22-36.pdf and IR-2022-163 at https://www.irs.gov/newsroom/reminder-file-2019-and-2020-returns-by-sept-30-to-get-covid-penalty-relief] The failure to file penalty for these returns starts to accrue on October 1, 2022. For Form 1040 filers and many business and specialty filers (Forms 1120 series, 1041, 1065, 990, and others), the IRS will automatically abate the failure to file penalty.

Practice Tip: Taxpayers should always confirm that their failure to file penalty has been abated by looking at their 2019 and/or 2020 account transcripts.

Requesting Penalty Relief

Taxpayers can request non-assertion of the penalty when filing the return or request abatement after the return has been filed. [IRM 5.18.1.9.2.3.14.11 (3-11-2020)] Non-assertion requests are made using a letter attached to a return that explains why the taxpayer should be granted relief. Taxpayers who are assessed late filing penalties can also request abatement via a letter or Form 843, Claim for Refund and Request for Abatement. Taxes do not have to be paid before penalties can be abated. However, if the failure to pay penalty has not yet accrued to its maximum amount and the tax is unpaid, the taxpayer may wish to wait until the full amount of the FTP penalty has been assessed to request abatement. The failure to pay penalty will continue to be assessed until it reaches its maximum amount, even if the prior penalties were abated.

Practice Tip: Most non-assertion requests are ignored by the IRS during the late filing return processing and require the taxpayer to follow-up with a post-assessment abatement request. Non-assertion requests are usually administratively considered when late filing is enforced locally (i.e., by IRS local Examination or Collection personnel). However, some local enforcement personnel will want taxpayers to address the penalty after the penalty is assessed by filing a Form 843 with the IRS campus that processes the return and assesses the penalty.

Taxpayers usually request abatement using the IRS first-time penalty abatement waiver (FTA) or “reasonable cause.” Also, if the taxpayer is subject to late filing relief due to being in a Federally Declared Disaster area (or impacted by a disaster area), they should contact the IRS directly to assert disaster penalty relief.

Taxpayers can first use the FTA waiver if they have a clean compliance history. Taxpayers with no prior penalties (failure to file, failure to pay, or accuracy penalty) in the previous three years qualify for automatic removal of the failure to file and pay penalties for one year only.

FTA is usually only granted after the penalty has been assessed. Taxpayers requesting FTA can do so for any amount by phone.

Example 5-2 Kyle Gusto files his 2022 tax return on July 1, 2024 and incurs a $256,500 failure to file penalty and a $183,230 failure to pay penalty. Kyle paid his balance in full when filing, including the late penalties, and has no other unfiled returns. In 2019-2021, Mr. Gusto did not have any other penalties. Kyle receives his IRS letter with the additional penalties listed. On September 2, 2024, he contacts the IRS by phone and requests FTA for 2022 for the failure to file and failure to pay penalties. FTA is granted for the full amount of the penalties because of Kyle’s clean compliance history. Kyle receives a refund for the penalties six weeks after his request was granted.

Reasonable Cause Arguments and IRS Guidance

When using reasonable cause, the IRS will look to see if the taxpayer has circumstances outside of their control that caused them to file late. IRM Exhibit 5.1.15-12 partially provides the categories of reasonable cause and issues that the taxpayer should address when requesting reasonable cause for the failure to file penalty.

Table 5-8Failure to File and Failure to Pay Penalties

Category	Category Issues/Possible Questions
AbsenceTaxpayer claims he or she was unable to comply because of absence, either his or her own or the absence of another person.[IRM 20.1.1.3.2.2.1]	Who was absent?Date(s) of the absenceReason for AbsenceHow did the absence prevent compliance?Is documentation provided?
Assessment-ErrorThe penalty(s) should not have been assessed in the first place, or the taxpayer disagrees with the amount of the penalty(s). [IRM 20.1.1.3.4]	What type of assessment error?Taxpayer disagrees with penalty computation in what way?A payment was missing?Payment was refunded in error?Not given credit for extension?Taxpayer mailed return timely?
BankruptcyThe taxpayer claims to be in bankruptcy	What documentation is provided to confirm the bankruptcy?
CasualtyThe taxpayer claims he or she was unable to comply because of a casualty.[IRM 20.1.1.3.2.2.2]	Date(s) of casualtyType of casualty, such as:• Fire• Theft• AccidentIn a FEMA declared area?What was destroyed?Is documentation provided?
DeathThe taxpayer, a relative, or someone affecting the taxpayer’s business died.[IRM 20.1.1.3.2.2.1]	Date of death?Who died?Is documentation provided?
DivorceA divorce prevented the taxpayer from complying.	Who got divorced?How did the divorce prevent the taxpayer from meeting her obligation?
Elderly TaxpayerThe taxpayer did not comply because he or she is elderly or incapacitated.	Has someone taken responsibility for the affairs of the taxpayer?A legal guardian appointed?A child or relative?Is there documentation?
ExtensionAny problems associated with an extension. [IRM 20.1.2.2.3.1]	Taxpayer forgot to file an extension?Extension and/or payment lost in mail?Third party did not file extension?
IgnoranceThe taxpayer did not know about, or was unfamiliar with, filing requirements, withholding, etc.; the taxpayer was unaware of income or did not know it was taxable.[IRM 20.1.1.3.2.2.6]	Taxpayer claims ignorance in the following areas:Did not understand filing requirements?First time under-withholding of tax?First time self-employment?First time unanticipated income?Believed too little income to file?Didn’t know the due date?Not aware of income?Not aware income taxable?Involves a foreign language or custom?
IllnessAn illness of the taxpayer or an illness of someone else caused the failure to comply.[IRM 20.1.1.3.2.2.1]	Did illness stop the taxpayer from taking care of normal financial activities?Who was ill?
Impairment (Unavoidable absence)The taxpayer is physically or mentally impaired. [IRM 20.1.1.3.2.2.1]	Has someone taken responsibility for the affairs of the taxpayer?What is the extent of taxpayer’s impairment? What other elements of their life (outside of tax filing obligations) were affected?
IRS ErrorTaxpayer claims that an IRS error caused the non-compliance.[IRM 20.1.1.3.4]	What was the nature of the IRS error?Error in an IRS or SSA Publication?IRS employee gave incorrect technical advice?IRS incorrectly processed taxpayer’s return?IRS incorrectly processed taxpayer’s payment?IRS failed to send promised forms?What documentation is provided?
Lack of FormsThe taxpayer did not have the form or schedule required to file the return.	Did the taxpayer request an extension of time to file?
Mail ProblemTaxpayer claims that return or payment was late due to a problem with the mail.[IRM 20.1.1.3.2.22.2.1]	What was the nature of the mail problem?Return/payment sent to another taxing agency?Return/payment sent to another creditor?Return/payment lost in mail?Insufficient postage?Delayed in mail; taxpayer claims error by postal service?Sent timely to Lock Box?
Mitigating CircumstanceA mitigating circumstance does not refer to an event beyond the control of the taxpayer, but it is an issue mentioned by the taxpayer. Identifying mitigating circumstances; this helps to produce a better penalty disallowance letter.	What kind of circumstance does the taxpayer describe?Lack of willful intent?Taxpayer called IRS for advice, but phones were busy?Filing requirements are too complex?Taxpayer’s situation is special or unique?First time taxpayer received unanticipated income, self-employment income, etc.?Taxpayer changed jobs, moved, having marital difficulties?Taxpayer took corrective action?Taxpayer detected error in first place?Taxpayer corrected the error?
OtherSelect this category only if the case does not fit into another category. An abatement in the Other category requires concurrence by a manager.[IRM 20.1.1.3.2]	What does the taxpayer claim?When did the event preventing compliance begin and end?What is the basis for the taxpayer’s claim?What impact did this have on the taxpayer?What documentation is provided?Does the manager agree to the abatement?
Records UnobtainableThe taxpayer was unable to obtain or reconstruct records.[IRM 20.1.1.3.2.2.3]	What type of records were unobtainable?From whom was the taxpayer unable to obtain records?Why was the taxpayer unable to obtain the records?
RelianceThe taxpayer relied on someone else to file or pay or relied on the advice of someone else.[IRM 20.1.1.3.2.2.5]	Who did the taxpayer rely on?What was the nature of the reliance?Did the person say the taxpayer did not need to file or pay?Did the person handle everything?Did the person fail to send in return or payment?Did the person fail to file an extension?What documentation is available?
RelocationA move or relocation resulted in the taxpayer’s inability to comply.	A relocation will not meet reasonable cause penalty relief criteria. Therefore, no questions are asked in this category. The penalty will automatically be sustained.
SignatureOne or more required signatures were missing from the taxpayer’s return.	What is the nature of the signature problem?Joint return unsigned by husband or wife?Not signed, but otherwise complete?Spouse unwilling to sign return or check?
Tax Law ChangeThe taxpayer’s failure to comply was directly related to a change in the tax law. An abatement in the Tax Law Change category requires the concurrence of a manager.	Did the taxpayer cite a specific change in the tax law?Would a return and/or payment have been due if no tax lawchange occurred?When did the taxpayer become aware of the need to file or pay?Does the manager agree this case should be abated?
Unable to PayThe taxpayer lacked the funds to pay or payment would have been a hardship.[IRM 20.1.1.3.3.3]	The inability to pay does not constitute reasonable cause for late filing. However, it can be cause for late payment penalty abatement. An undue hardship must be more than an inconvenience to the taxpayer. Each request must be considered on a case-by-case basis. The mere inability to pay does not ordinarily provide the basis for granting penalty relief. The taxpayer must show that she exercised ordinary business care and prudence in providing for the payment of the tax liability. Information to consider when evaluating a request for penalty relief includes, but is not limited to the following:• When did the taxpayer know she could not pay?• Why was the taxpayer unable to pay?• Did the taxpayer explore other means to secure the necessary funds?• What did the taxpayer supply in the way of supporting documentation, such as copies of bank statements?• Did the taxpayer pay when the funds became available?[See Treas. Reg. §1.6161-1(b) and Treas. Reg. §301.6651-1(c)]

[See ¶402 for more on how to request penalty relief for the failure to file penalty]

Statute of Limitations

There are three statutes of limitations for taxpayers:

1. Refund statute of limitations: the time limit for a taxpayer to request a refund of overpaid taxes for a tax period. The “refund statute expiration date” (RSED) is the last day that the taxpayer can request a refund for a tax period.
2. Assessment statute of limitations: the time limit within which the IRS must assess additional tax. The “assessment statute expiration date” (ASED) is the last day for a tax period that the IRS must assess additional tax (i.e., through an audit or adjustment).
3. Collection statute of limitations: the time limit that the IRS has to collect on a balance owed for a tax period. The “collection statute expiration date” (CSED) is the last day for the IRS to collect on a back balance owed. Once this date expires, the IRS writes off any remaining balance owed by the taxpayer.

Refund Statute Expiration Date (RSED)

Internal Revenue Code section 6511(a) provides the limits on the taxpayer’s obtaining a credit or refund of taxes. Any claim for credit or refund of an overpayment must be filed by the taxpayer within three years from the time the return was filed or two years from the time the tax was paid, whichever is later, or if no return was filed by the taxpayer, within two years from the time the tax was paid. Taxpayers risk forfeiting their refund if they file more than three years after the due date of their return (including extensions).

Refund-due taxpayers who file past the RSED lose their refunds and the ability of the refunds to be offset against other years balances owed or credited to a future year.

Practice Tip: Taxpayers are allowed to amend returns three years after the return is filed or two years after the tax has been paid. Taxpayers with balance owed years can file an amended return and lower the amount that is owed. [IRS Policy Statement 3-15 (9-20-1999)] If the three-year refund period has expired, they can still obtain a refund for any amounts overpaid within the past two years.

When filing late returns, many taxpayers will be barred from a refund if they file three years after the due date (original due date or extended due date). [IRC section 6511(a)(2)(A) and IRM 25.6.1.8.5 (10-1-2021)] IRS systems will automatically deny the refund. Taxpayers will generally see a TC 820 on their account transcript with the amount of their refund as a “credit transfer” with no associated tax period. [IRM 25.6.1.9.12.2 (10-3-2022)] The taxpayer will receive IRS Letter 105C, Claim Disallow-Full, that states that they are not entitled to their refund due to filing after the RSED. [IRM 25.6.1.10.1.1 at (6) (4-26-2023)]

Example 5-3 Taxpayer filed a 2015 return (with no extension) on June 20, 2019 and is entitled to a $2,290 refund. IRS systems restrict the refund and the taxpayer’s account transcript indicates a TC 820 with a credit transfer with no associated tax period.

Figure 5-3

Practice Tip: The IRS may determine that a taxpayer is due a refund during a non-filer investigation. However, the taxpayer must file a return in order to receive the refund. The IRS will not file a substitute for return in which the taxpayer obtains a refund. In practice, the IRS does not pursue refund due non-filers. In addition, most automated non-filer assessments (i.e., the IRS’s Automated Substitute for Return program or “ASFR”) usually initiates enforcement two to three years after the filing due date and often past the RSED.

Unfiled Returns and the Assessment Statute

The assessment statute sets limits of time when the IRS can audit a taxpayer and assess additional taxes owed. Generally, an assessment of tax must be made within three years from the date a return is filed. For filed returns, the IRS has three years after the due date of the return or the date the return is filed, whichever is later, to assess additional taxes owed. The ASED can be extended for several reasons, including, among others, a substantial omission of income or fraud. [IRC section 6501(c) , IRM 25.6.1.9.5.3 (10-2-2023), and IRM 25.6.1.9.5.2 (10-3-2022)]

Only filed tax returns have an ASED. Taxpayers who do not file do not have an ASED. Also, the assessment statute does not start if the IRS files a return for the taxpayer (a substitute for return or “SFR”). [IRC section 6501(c)((3) and IRM 25.6.1.9.4.5 (10-5-2016)] If a taxpayer agrees with an IRS SFR and signs a waiver of restrictions on assessment (i.e., Form 870 or Form 4549), it still does not constitute a filed return and the beginning of the three-year assessment statute. [IRM 25.6.1.9.4.5 at (2) (10-5-2016)] However, if the taxpayer signs a return prepared from income information received from the taxpayer, it becomes the taxpayer’s return and starts the assessment period of limitations. [IRM 25.6.1.9.4.5 at (2) (10-5-2016)]

Note: several sections of the IRM have been redacted by the IRS in 2025 due to Executive Orders issued in January 2025.

Collection and Collection Statute Implications on Non-filers

Taxpayers who do not file do not have a balance for the IRS to collect. The collection statute starts on the date the taxpayer files and is assessed the tax. The IRS has ten years to collect from the assessment date. The CSED can be extended for various IRS actions.

If the IRS files a return for the taxpayer (SFR), the SFR assessment date starts the collection statute. [IRM 5.18.1.9.2.3.16.3 (3-11-2020)] Taxpayers who file later may create a second CSED if they assess additional taxes with their filed return.

[See ¶301.01 for information on the CSED]

IRS Non-filer Enforcement Programs

The IRS enforces non-filing through its IRS Collection and Examination (audit) functions. Most enforcement comes from IRS Collections, who identify non-filing taxpayers who have a filing requirement through third-party information returns (W-2s, 1099s, etc.). Most of these programs send the taxpayer several notices requesting them to voluntarily file.

Enforcement Programs

Non-filing taxpayers can face various IRS enforcement activity:

• Notices asking taxpayers to correct or explain return delinquency (RD): if a taxpayer does not file, the IRS can send a request to file (usually IRS notice CP59) in November or the following February. The CP59 inquiry is the most common IRS non-filer program. If a taxpayer does not file or explain why he does not need to file (using IRS Form 15103), the IRS can send additional reminder notices (usually IRS notice CP516) to request filing. Taxpayers who do not file can be sent for further enforcement.
• Taxpayer delinquency investigation (TDI): taxpayers who have not filed can be sent to IRS Automated Collection and the Collection Field function for enforcement. If the taxpayer does not file, the IRS can pursue making an assessment (a substitute for return) based on available information (W-2s, 1099, and other information gathered in the TDI).
• Substitute for return filing (SFR): when a taxpayer does not file, the IRS can make an assessment based on the information available to the IRS (W-2s, 1099s, and other information gathered from third parties). The IRS follows the same procedures that it uses in an audit (deficiency procedures) to propose and assess additional tax, penalties, and interest. Taxpayers are given a final opportunity to file or agree to the prepared SFR before the IRS files the return for the taxpayer.
• Civil and criminal investigation: Taxpayers with serious delinquencies and larger deficiencies can face local IRS investigations by IRS Examination and Collection personnel as well as IRS Criminal Investigation special agents. Taxpayers can incur significant civil and criminal fraud penalties for non-filing.

Refund Holds

In some cases, the IRS can freeze refunds when the taxpayer has a return delinquency with a potential liability owed. [IRM 25.12.1.1.5 (12-19-2017)] Refund holds can look back to five prior years where the IRS has identified a potential liability and put a refund freeze indicator on the taxpayer’s account. The IRS usually holds the refund for six months to allow the taxpayer to explain or file. After the six-month hold, IRS systems usually automatically release the refund hold and issue the refund or assess the tax on the delinquent return and use the refund proceeds to offset the balance owed. [IRM 25.12.1.2 at (1) and (3) (6-10-2020)]

If the taxpayer is undergoing an audit or underreporter inquiry, an IRS auditor may put a refund freeze on the taxpayer’s account in anticipation of a balance owed (from the audit or for an unfiled return that was requested to be filed during the audit) that can be paid through a taxpayer refund. However, these are rare as most refund freezes are initiated through IRS Collection and its Return Delinquency program.

IRS account transcripts may not show a refund freeze on the taxpayer’s account. Taxpayers who have a TC 140 (non-filing inquiry) and TC 570 (credit freeze) are good indicators that a refund freeze is in place on the taxpayer.

Practice Tip: Taxpayers who do not receive their refund will receive IRS notice CP63. Taxpayers should immediately contact the IRS and understand what years need to be filed in order to release the refund.

IRS Non-filer Enforcement: Substitute for Returns (SFRs)

Under authority of Internal Revenue Code section 6020(b), the IRS has authority to prepare and process a tax return when a person fails to file a required return or files a false or fraudulent return. [IRM 25.6.1.9.4.5 (10-5-2016)] The SFR uses the highest tax rates with no deductions allowed (including favorable filing status elections and deductions for dependents). Interest and penalties (failure to file, failure to pay, and estimated tax) are assessed from the original due date of the return on the filed SFR and continue to accrue until the account is paid in full.

SFR Enforcement

SFRs can be prepared by IRS Collection or IRS Examination personnel. Most SFRs are prepared by IRS Collections through the IRS’s Automated Substitute for Return (ASFR) unit located in one of these three IRS campuses [IRM 5.18.1.9.2 (6-27-2023)]:

Table 5-9

Campus	Mailing Address	Private Delivery Service (POS) Mailing
Austin	Internal Revenue ServiceASFR UnitP.O. Box 149338Austin, TX 78714-9338	Internal Revenue ServiceASFR UnitStop 5501Austin TX 78714
Brookhaven	Internal Revenue ServiceASFR UnitP.O. Box 9013Holtsville, NY 11742-9013	Internal Revenue ServiceASFR UnitStop 654Holtsville, NY 11742
Fresno	Internal Revenue ServiceASFR UnitP.O. Box 24015Fresno, CA 93779-4015	Internal Revenue ServiceASFR UnitStop 81105Fresno, CA 93779

Cases can be assigned to the ASFR after the issuance of IRS notice CP59 or CP518. [IRM 5.19.2.6.4.3 (8-6-2018)] The ASFR unit is usually assigned most of the return delinquencies on taxpayers. However, certain taxpayers will be routed to the IRS Collection Field function for delinquent return enforcement. Some of these criteria include:

• Balance due taxpayers.
• International taxpayers.
• Taxpayers with no income listed on their wage and income transcript.
• Taxpayers with more than 60 information returns.
• Taxpayer who are assigned to IRS Examination (audit), in bankruptcy or other collection litigation or appeal, or subject to Criminal Investigation.

[IRM 5.19.2.6.4.3 (8-6-2018)]

Practice Tip: IRS Field Collection resources have been greatly diminished over the past ten years and many return delinquency investigations are held for a considerable amount of time in the Field Collection “queue” until assigned to a Revenue Officer for assignment. The collection “queue” is an automated holding file for unassigned inventory of delinquent cases for which employees in the Collection Field function are unable to be immediately assigned for contact due to limited resources. Taxpayers can still file a return while in the queue.

SFR Letter Process

Taxpayers receive a series of notices prior to the SFR assessment:

Figure 5-4

The IRS does not always pursue the taxpayer past the CP59 or CP518 notice for SFR enforcement. Also, taxpayers can interrupt this process by filing a return.

If the IRS pursues an SFR, the IRS will issue Letter 2566, 30-day letter (notice of proposed assessment). Letter 2566 includes:

• Tax Calculation Summary.
• Summary of the Income Sources.
• Explanation of Penalties and Interest.
• Taxpayer Response Form.
• Publication 1.
• Publications 5 and 594.
• Notice 609.
• Cover Sheet.
• Return envelope.

[IRM 5.18.1.6.11.9.1 (4-6-2016)]

If the IRS has put a refund hold on the taxpayer’s account, the Letter 2566R will be issued instead of the Letter 2566.

If the taxpayer does not respond by filing a return, the IRS will proceed to issue a Statutory Notice of Deficiency Letter CP3219. This letter provides the taxpayer 90-days to petition the U.S. Tax Court before the deficiency is assessed. Taxpayers can file a tax return or agree to the SFR. The Letter CP3219 includes:

• Notice of Deficiency (two copies).
• Taxpayer Response Form.
• Courtesy copy of 30-Day Letter tax/penalty/interest calculations and explanation sheet.

[IRM 5.18.1.6.11.41 (6-27-2023)]

If the taxpayer ignores the SFR notices, the tax, penalties, and interest are assessed, and the taxpayer receives a CP22 notice indicating the assessment to the taxpayer’s account. If the taxpayer does not pay the balance owed, the collection notice stream starts, and the IRS pursues the taxpayer for payment or a collection alternative.

[See ¶301 for the Collection Notice Stream]

Identifying a Substitute for Return Filing

IRS account transcripts will indicate an SFR filing.

Figure 5-5

The taxpayer’s account transcript will indicate the SFR tax assessment (usually IRS TC 290).

Figure 5-6

If the SFR was generated by IRS Examination, a TC 300 will be used to assess the additional tax.

The associated penalties and balance due notice (CP22) will show under their transaction codes on the date of assessment.

Figure 5-7

SFR Reconsideration

Taxpayers who do not respond during the SFR process or disagree with the notice of deficiency of additional tax, penalties, and interest can qualify for SFR reconsideration. Taxpayers only qualify if they are filing a correct original return. [IRM 5.1.15.3.2 (8-11-2015(3-17-2025)]

Practice Tip: If the taxpayer pays the SFR balance and the refund statute of limitations has expired (i.e., it is more than three years from the original due date or two years after the tax is paid), the taxpayer will not be able to receive a refund of overpaid amounts paid. It is important to research the taxpayer’s account and file the original return timely in order to recover any overpaid amounts.

Once an SFR is assigned to ASFR, the Collection Field function, the Examination Division, or if an SFR assessment is made, the taxpayer must follow special procedures to resolve the delinquent return. SFR reconsideration requires that the taxpayer:

• File the return to the unit that processed the SFR (ASFR Unit or Examination), and
• Pass IRS screening of the return for inclusion of all income items and resolve any questioned large, unusual, or questionable items on the return.

Practice Tip: At a minimum, the taxpayer should always review their wage and income transcript and make sure that all items of income are included on the original return submitted for SFR reconsideration. IRS procedures require its tax examiners to complete this minimum income check before accepting the return. [IRM 5.1.15.4.7 (3-17-202508-11-2015)] [IRM 5.1.15.4.7.1 (3-17-20258-11-2015)]

Taxpayers who have a dispute with the IRS on an accepted SFR reconsideration or a proposed SFR filing can appeal their case to the IRS Independent Office of Appeals. [IRM 5.1.15.4.6.4 at (1) (3-17-20254-16-2010)] Taxpayers who have an SFR assessment and are denied reconsideration will not have a route to IRS Appeals. [IRM 5.1.15.4.6.4 at (2) (3-17-20254-16-2010)]

Practice Tip: In practice, it is rare to appeal SFR reconsideration cases to the IRS Independent Office of Appeals. If the taxpayer is disputing an SFR proposed assessment, generally it is related to an IRS examination in which the taxpayer will be sent to IRS appeals through the audit process. If a taxpayer requests a post-assessment SFR reconsideration and is denied, their recourse is to use the claim for refund procedures (pay the balance owed, filed a claim for refund, have the IRS reject the claim or wait six months, and sue the IRS in court). Again, this is rare and usually not a practical remedy for most taxpayers. Most SFR reconsiderations are accepted when the taxpayer files an accurate return with the IRS to replace the SFR.

The IRS is instructed to process SFR reconsideration requests in 60-90 days. [IRM 5.1.15.4.6.3 (3-17-202508-11-2015)] However, final approval and adjustments to the amounts owed can take longer depending on the taxpayer’s circumstances and IRS resources. Taxpayers with SFRs that originated from the Collection Field function or the Examination Division will take longer to process and accept. Taxpayers will also encounter longer adjustment time frames if their return does not match IRS wage and income information or large, unusual, or questionable items are audited by the IRS before acceptance.

Practice Tip: Taxpayers can contact the IRS ASFR Reconsideration Unit to find out the status of their original return acceptance. The ASFR unit representative can also provide an estimate of when the return will be processed. The ASFR unit works all returns on a first-in, first-out basis, and the ASFR reconsideration process can take months to have a return accepted by the IRS. Taxpayers with balances owed should always request collection holds so that enforced collection actions do not occur during ASFR reconsideration.

Identifying Non-filing

Non-filing can be determined by reviewing IRS account transcripts or by contacting the IRS directly. IRS account transcripts provide a record of returns filed and posted for each tax period/form. However, a taxpayer must contact the IRS directly to confirm that a return has been received If a return has been filed and not yet processed by the IRS.

Practice Tip: IRS account transcripts will often indicate a filed return. However, IRS transcripts can be confusing in situations where taxpayers filed delinquent returns, especially if there are prior return delinquency inquiries, taxpayer delinquency investigations, or a substitute for return filing. In these cases, it is always a best practice to contact the IRS directly and review the account actions to fully understand the status and next actions needed to correct the non-filing.

Account Transcripts

IRS non-filers inquiries usually will have a TC 140 on their account transcript for the non-filing year/form.

Figure 5-8

There are many account transcript transaction codes that can indicate late-filing actions, including the following transactions codes:

• TC 150 – Tax Return – An SFR can be identified by the description. All other TC 150s posted are actual returns.
• TC 166 – Delinquent Penalty
• TC 170 – Estimated Tax Penalty
• TC 171 – Abatement of Estimated Tax Penalty
• TC 196 – Assessed Interest
• TC 276 – Assessed Failure to Pay Tax Penalty
• TC 290 – Additional Tax Assessment
• TC 291 – Abatement of Tax
• TC 300 – Additional Tax Assessed by Exam
• TC 301 – Abatement of Exam Assessed Tax
• TC 420 – Examination Indicator
• TC 421 – Reversal of TC 420
• TC 460 – Extension to File Given
• TC 474 – Manual Taxpayer Delinquency Notice
• TC 494 – 90-Day Letter Issued
• TC 495 – Reversal of TC 494
• TC 570 – Freezes Credit on a Tax Module
• TC 590 – Taxpayer Not Liable to File a Return for the Tax Period
• TC 599 – Return Secured
• TC 610 – Payment Received with Return
• TC 710 – Credit Elect
• TC 806 – Withholding Tax and/or Excess FICA
• TC 971 – Posted Miscellaneous Transaction
• TC 976 – Posted Duplicate Return
• TC 977 – Amended Return Posted

[IRM 5.18.1.9.2.1.2 (6-27-2023)]

Delinquent filers with these transaction codes should contact the IRS directly by phone to get clarity on their account activity.

¶502 RESOLVING UNFILED PAST-DUE RETURNS

This section covers the steps needed to resolve an unfiled past-due return and to get into good standing on filing compliance with the IRS.


	Topic	Covers
¶502.01	Seven Steps to Resolve Unfiled Past-Due Returns	The sequence of steps taken to resolve a past-due return.
¶502.02	Step-by-Step Actions and Practice tips	What to do at each step of the process to resolve unfiled past-due returns and related issues.

Other helpful subsections:


	Topic	Covers
¶102	IRS Transcripts	How to obtain IRS transcripts needed to accurately file past-due returns.
¶402	IRS Penalty Abatement: Late Filing and Late Payment	Late filing abatement options and how to request penalty abatement for the failure to file penalty.
¶302	IRS Collection Alternatives	IRS collection alternatives when a taxpayer files a past due return and owes the IRS back taxes.

Key Highlights:

• There are seven steps to resolve an unfiled past-due return. The taxpayer starts by confirming that they have not filed and that they have a filing requirement. The middle steps include preparing an acceptable return and processing the return using any special procedures. The final stages include requesting applicable penalty abatement and confirming the returns were processed accurately.
• Taxpayers generally are only required to file the past six years returns to be IRS filing compliant. However, taxpayers should file older years if they can lower an SFR balance owed or to obtain a refund of an SFR balance that was paid within the past two years.
• Taxpayers filing back returns should do their due diligence to file an accurate return. Late filers will have their returns screened by the IRS before acceptance. At a minimum, taxpayers need to report or explain all of their income that is reported to the IRS and contained on their wage and income transcripts.
• Acceptance of paper-filed past-due returns can take 5-7up to ten months to be accepted, depending on whether the IRS has had prior non-filer enforcement activity.

Seven Steps to Resolve Unfiled Past-Due Returns

Taxpayers and their professionals should use the following seven steps to resolve past-due returns:

Table 5-10

Step #	Action	Description
1	Confirm non-filing	Confirm that the taxpayer has not filed the return in question:• Obtain taxpayer explanation.• Contact IRS if there is any discrepancy.
2	Confirm filing requirement	Confirm that the taxpayer has a filing requirement based on his situation:• Obtain taxpayer income and tax information to confirm filing requirement.• Contact IRS and request wage and income information for reporting requirement (see Step 4).
3	Determine year(s) that must be filed	Apply IRS Policy Statement 5-133:• Confirm years to be filed with IRS (see Step 4).• Consider filing earlier years with balance owed from SFR activity.
4	Request IRS information and IRS enforcement hold (if needed)	Contact IRS for information:• Confirm year(s) to be filed. If the IRS is requesting more than the past six years, inquire as to the reason for the PS 5-133 deviation.• Request IRS transcripts for years in question: e.g., wage and income and account transcripts.• Obtain IRS deadlines to file.• Obtain any special processing procedures and addresses for unfiled years.• Inquire about any other related issues (mainly, IRS collection issues that may require expedited solutions) and necessary actions/deadlines.• Request hold on collection/SFR processing, if applicable.
5	File past-due returns	File returns with the IRS:• Obtain the taxpayer’s relevant tax information.• Prepare return.• File according to special procedures, if any.• Confirm IRS receipt and processing of returns. Note: tax professionals can usually file the current and past two years electronically with the IRS if there is no prior IRS enforcement activity. However, taxpayers who prepare and file their own returns using DIY software are generally limited to only e-filing the current year.
6	Request penalty abatement, if applicable	Request non-assertion and/or post assessment penalty relief, if applicable:• Request failure to file/failure to pay penalty relief for balance due years if FTA or reasonable cause apply.• Pre-assessment request: request with return using a letter.• Post-assessment request: file Form 843 or request FTA by phone after first bill received.• Not applicable for years with refunds.
7	Confirm returns are accepted	Confirm IRS accepts return as filed:• Respond to notices.• Contact IRS and confirm properly processed with future notices and IRS transcripts.

Step-by-Step Actions and Practice Tips

Step 1: Confirm Non-filing

Taxpayers should review their records and confirm that they did not file. If the taxpayer has filed, they need to respond to the IRS with Form 15103, Form 1040 Return Delinquency, with a copy of the return filed.

If a taxpayer believes that she has filed the return, the taxpayer may want to contact the IRS directly to see if there was a processing issue. If there is a prior processing issue that was not rectified by the IRS, the taxpayer should consider involving the Taxpayer Advocate Service to resolve the issue.

Practice Tip: To get more answers on processing issues, the taxpayer will need to contact the IRS using the number listed on the notice. A tax professional can utilize the IRS through the Practitioner Priority Service hotline, with an authorization (Form 2848 or 8821), to obtain answers about the filing issue.

Step 2: Confirm Filing Requirement

The taxpayer or their tax professional will need to confirm that the taxpayer has a filing requirement. Some IRS return delinquency notices may ask for a return because the taxpayer filed a prior return or filed an extension to file for that year. If the taxpayer determines that they do not have a filing requirement, they should research their wage and income information filed with the IRS (see Step 4) to confirm that they do not have a requirement.

Taxpayers who do not have a filing requirement can send in Form 15103, Form 1040 Return Delinquency, and indicate why they do not need to file a return for that year (filing status, tax situation, income, and reason for not filing). If the IRS accepts the reason, it will delete the taxpayer’s filing requirement for that year. Note: the IRS Inidivdual Online Account now accepts submission of the Form 15103 directly online in the “forms” section of the online account.

Practice Tip: IRS return delinquency inquiries to a taxpayer who does not have a filing requirement may result in the discovery that her identity has been stolen. Taxpayers who have been subject to employment-related tax identity theft (i.e., a person is using the taxpayer’s identification number for employment, or contracting and have a Form W-2 or 1099 erroneously filed under their identification number) will need to follow the tax identity theft reporting process to remove the information returns from their record and resolve the back-filing issue.

Step 3: Determine Year(s) That Are Needed to File

A return delinquency notice may uncover that the taxpayer has multiple years of unfiled returns. To become filing compliant, the taxpayer will need to file all required back returns.

Taxpayers should apply IRS Policy Statement 5-133, Delinquent Returns—Enforcement of Filing Requirements. Normally, under this Policy Statement, the taxpayer is only required to file the past six years of returns. Taxpayers unsure of back filing compliance should contact the IRS and determine specifically which returns need to be filed.

Taxpayers may also want to file back years with a balance due from an SFR filing. SFRs filed by the IRS are considered filing compliant for the SFR year. However, taxpayers can often lower the balance owed by filing an original return in place of the SFR. Taxpayers should also file to obtain any refunds for the past three years or for old SFR years in which payments were made (in the past two years).

Step 4: Obtain IRS Information and Request Enforcement Hold

Taxpayers should do their due diligence with the IRS to resolve their past-due return issue and any other related issues. Taxpayers can contact the number on the IRS notice (tax pros can contact the Practitioner Priority Service with a taxpayer’s authorization Form 2848 or 8821) and obtain the information needed to file accurately and to the proper location at the IRS.

The IRS can provide valuable information and temporary relief to resolve the past-due return issue:

• Unfiled years that need to be filed: determine year(s) that are required to be filed. If the IRS is asking years prior to the preceding six years, obtain the reason and manager approval confirmation for the PS 5-133 deviation. Determine if there are other returns that should be filed to lower liability/obtain refund.
• IRS transcripts: Obtain information that will assist in filing the past-due returns. Obtain wage and income and account transcripts (for both the primary and spouse, if applicable) for the unfiled years. In many cases, it is helpful to ask the IRS for the “unmasked” wage and income transcripts that will help in specifically identifying sources of income. In addition, obtain account transcripts for the unfiled years to obtain any estimated tax payments made for those years. Consider obtaining tax return transcripts on returns filed for the past three years to help with filing the later return..

Practice Tip: Taxpayers can use IRS Form 4506-T, Request for Transcript of Tax Return, to order transcripts. However, in most cases, it is easier and quicker to request transcripts online using the IRS Get Transcript online service (to order the transcripts online or to be mailed to the taxpayer) or use a tax professional to obtain them. [See ¶102-¶104 for information on IRS transcripts, using representatives to acquire information, and IRS online tools for requesting transcripts]

• Enforcement status and deadlines to avoid enforcement: the taxpayer will need to know her timeline to file the back returns and the ramifications if she does not meet the deadline.
• Obtain any special processing procedures and addresses for unfiled years: if the IRS has started enforcement activity (SFR, etc.), the taxpayer will need to identify the address to file each past-due return. Note: the filing addresses may be different for multiple unfiled years.
• Identification of other related issues: taxpayers with past due returns may have other issues that need to be resolved. For example, if the IRS has filed an SFR for the taxpayer in the past, she may have collection issues.
• Temporary hold on collection/SFR processing, if applicable: the taxpayer may need to ask the IRS to delay the filing of an SFR or delay IRS collection on an assessed SFR in order to avoid premature assessments or collection activity.

IRS wage and income transcripts (W\&I) contain valuable information to file back returns. W\&I transcripts are available for the past ten years. W\&I transcripts contain information returns for:

• Forms W-2 (including W-2G)
• Form 1099 series (includes 1099-MISC, DIV, INT, C, A, R, Q, G, S, K, CAP, SA, LS, SB, OID, PATR, MSA, LTC, H, and SSA-1099)
• 1098 series (includes 1098-T, C, E, and Q)
• Forms 5498 (includes 5498-MSA and ESA)
• Forms 3921 and 3922
• Schedules K-1 (1120S, 1065, 1041)
• Form 1042-S
• Form 8805

Note: W\&I transcripts will not contain Form 1095 series related to insurance coverage. Also, note that joint filers will have separate W\&I transcripts. However, in 2025, taxpayers can access their Form 1095 online in their Taxpayer Online Account in the “Tax Records” section.

Practice Tip: One clear deficiency of IRS W\&I transcripts is that the transcript does not have the state income tax withholding. Taxpayers will need to contact their state to get this information. Some states do not retain this information and require the taxpayers to get the original document (W-2, 1099-R) that shows the state withholding. Taxpayers can use the IRS W\&I transcript to track down the employer and payers with state withholding information. Taxpayers cannot request “unmasked” W\&I transcripts online in order to see the full name and address of the employer or payer. Tax professionals can request unmasked W\&I transcripts by contacting the IRS Practitioner Priority Service or by downloading the transcripts via the IRS e-Services Transcript Delivery System. Taxpayers who need their unmasked W\&I transcripts can go to a local IRS Taxpayer Assistance Center or contact the Taxpayer Advocate Service. If the taxpayer files with an EIN (i.e., Form 1040, Schedule C with an EIN or a business entity, such as an 1120 or 1065), it is helpful to obtain a business “income transcript” to identify and report all sources of income on the late return. Business income transcripts (called an “IRP” transcript) can be obtained by contacting the IRS PPS directly. The PPS will fax these income transcripts directly to the tax pro.

Taxpayers and their professionals can use the following worksheet when contacting the IRS to obtain account information and transcripts.

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Figure 5-9, page 2

Step 5: File Past-Due Returns

Taxpayers will need to prepare the prior year return(s) and file the return(s) at the appropriate IRS location. The filing location will be determined by the IRS enforcement activity. Taxpayers currently in SFR enforcement will need to file with the SFR Unit. Taxpayers who have an SFR assessment will need to contact the IRS and obtain the address of the SFR Reconsideration Unit. (Note: each ASFR Unit has its own SFR Reconsideration Unit.) If the SFR was filed by the IRS Examination Division, the SFR reconsideration will be routed to that unit for review.

Practice Tip: Taxpayers should retain copies of substantiation for all items reported on past-due returns. Past-due returns are closely screened by the IRS before acceptance. When available, the taxpayer should e-file the past due return. However, because e-file is only available for the past two years, many taxpayers will need to paper file. In these cases, the taxpayer should send each return in a separate envelope to the IRS to ensure that the IRS does not bunch the returns together and miss processing a return.

Step 6: Request Penalty Abatement, if Applicable

Taxpayers filing a late, balance due return will incur failure to file and failure to pay penalties. Taxpayers can request non-assertion of the penalty by attaching a penalty abatement letter request to the filed return. If the IRS does not recognize or process the non-assertion letter, the taxpayer can request abatement using Form 843, Claim for Refund and Request for Abatement, after the penalty is assessed.

If the taxpayer qualifies for first-time abatement (FTA), they can contact the IRS by phone after the penalty is assessed.

[See ¶502 for more on penalty relief for the failure to file and pay penalties]

Step 7: Confirm Returns Are Accepted

It may take the IRS months to process and accept a past-due return. Taxpayers filing with the ASFR Unit, or facing SFR enforcement from IRS Examination (local or by mail) or local IRS Collection, may find that their returns take longer to be recorded on IRS records as a filed return.

Taxpayers should review their notices and account transcripts to make sure that the IRS has accepted the return as filed.

Practice Tip: If the IRS does not have SFR enforcement, the IRS normally accepts the paper-filed return within 16 weeks (under normal IRS operations). A tax proThe taxpayer can also e-file the past two years’ returns (assuming the IRS e-file system is open for processing) and receive confirmation shortly after filing. Almost all existing DIY software do not allow taxpayers to e-file prior year returns. Taxpayers can expect the ASFR unit to take months to process and accept the return. Taxpayers should contact the IRS periodically to check on the status of returns. If the taxpayer has related collection enforcement activity, the taxpayer should monitor enforcement status and request collection holds, as needed, until the returns are posted.

¶503 TEMPLATES FOR IRS UNFILED PAST-DUE TAX RETURNS


Figure	Reference	Title	Useful for:
5-10	¶502.02	IRS Account Research Worksheet – Past-Due Return(s)	A guideline to request information and transcripts from the IRS for filing past due return(s).

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¶504 IRS FORMS AND PUBLICATIONS FOR UNFILED PAST-DUE RETURNS

There are no specific IRS past-due return publications.


Figure	Form	Title	Useful for:	Latest Version/link
5-11	4506-T	Request for Transcript of Tax Return	Obtain transcripts (wage and income, account, return) to assist in filing accurate past-due returns.	6/20239/2024 https://www.irs.gov/pub/irs-pdf/f4506t.pdf
5-12	15103	Form 1040 Return Delinquency	Responding to the IRS on a delinquent return inquiry.	6/2017 https://www.irs.gov/pub/irs-pdf/f15103.pdf

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¶505 COMMON IRS UNFILED PAST-DUE RETURN NOTICES


Figure	Notice #	Title	Used for:
5-13	CP59	You Didn’t File a Form XXXX Tax Return	Initial return delinquency notice (issued after each tax year in November and the following February).
5-14	CP63	We’re Holding Your XXXX Tax Refund	CP63 is issued to inform the taxpayer that their refund is held as a result of IRS Collection function determination of a potential delinquent return liability. The notice contains the Refund Hold toll-free number 1-866-897-3315.
5-15	CP80	We Haven’t Received Your Tax Return; You Have a Credit on Your Account	CP80 is issued to notify the taxpayer of an unfiled return when there is a credit balance.
5-16	CP88	We’re Holding Your 2015 Tax Refund	Refund hold initiated by IRS Examination as a result of a delinquent return. Taxpayers are given the 1-800-829-0922 or 1-800-829-8374 account inquiry hotlines to resolve the notice.
5-17	CP515	You Didn’t File a Form 1040 Tax Return	Initial return delinquency notice (if letter CP59 goes undelivered).
5-18	CP516	You Must File Your 2018 Tax Return	Second notice to file a past due return.
5-19	CP518	You Must File Your 2019 Tax Return	Final return delinquency notice — issued eight weeks after the CP59 (if no return is received).
5-20	1862	Initial Contact Letter SFR Program	SFR contact letter from Examination Division that includes the Form 4549 Examination Report with the additional assessment and penalties proposed.
5-21	2566	30-Day Letter (No Refund Hold)	The letter informs the taxpayer that the IRS has not received a tax return for the tax year shown and includes a proposed tax assessment for the taxpayer. The letter advises taxpayers that within 30 days they must do one of the following: send their signed tax return; consent to the proposed tax assessment; or explain why they believe they are not required to file.
5-22	2566R	30-Day Letter (Refund Hold)	Same as Letter 2566. However, the taxpayer refunds are on hold until returns are filed.
5-23	3219N	Statutory Notice of Deficiency – 90-Day Letter	SFR proposed assessment. Taxpayer is given another 90 days to respond or to seek judicial review before the proposed tax is assessed.

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