Addressing IRS Notice CP259 and CP518: A Guide for Employers.

As an employer, receiving an IRS notice such as CP259 or CP518 can be alarming, especially when it claims you did not file one or more employment tax returns. These letters may assert that your employment tax returns are missing or late, but there have been instances where these notices are issued erroneously due to a glitch in the IRS's system.

Understanding the Issue:

Recently, some employers have reported receiving these notices despite having filed their returns on time and receiving acknowledgments from the IRS accepting their returns. Our team reached to the IRS electronic filing help desk and confirmed that the returns in question were indeed received and accepted by the IRS. However, the notices still arrive, indicating a problem on the IRS's side.

Case Examples:

• One employer received a CP259 notice almost a year after the return was due, followed by a second notice (CP518) eight days later, erroneously stating that two returns had not been filed.
• Another employer received a similar notice seven months after the return was due. Both of these employers have IRS acknowledgments confirming the acceptance of their returns.

Our Findings:

Out of thousands of returns filed, only two customers have experienced these issues, indicating that this glitch affects a very small number of returns. Nonetheless, it’s crucial to address these notices promptly to avoid potential penalties or further complications.

Recommended Action:

Here’s what you should do if you receive a Notice CP259 or CP518:

• Gather Documentation: Locate the acknowledgment receipt from TaxMe that shows the submission ID. This ID is critical as it is used by the IRS to track your returns.
• Respond to the Notice: Use the response section of your notice, state that the return was filed and provide the submission id. Attach a copy of your return and the acknowledgment receipt.
• Mail or Fax Your Response: Send your response and supporting documents by following the instructions on the notice you received.

Conclusion:

While these erroneous notices can be frustrating, responding with the correct documentation will help resolve the issue. At TaxMe, we strive to assist our clients with any issues they encounter, but it’s important to understand that this particular problem lies within the IRS’s processes. Rest assured, by following the recommended steps, you can effectively address and rectify these notices. If you continue to experience issues, please reach out to the IRS directly for further assistance.

By staying proactive and informed, employers can navigate these challenges and ensure their tax filings are correctly recognized by the IRS.