NOTICE CP516

Notice CP516 is a letter sent by the Internal Revenue Service (IRS) to taxpayers who have not filed their required federal income tax return for a specific year or years. The notice is a reminder to the taxpayer that they need to file their return as soon as possible.

There are a few reasons why you may have received Notice CP516:

• You may have simply forgotten to file your return.
• You may have been unable to file your return on time due to circumstances beyond your control, such as a serious illness or a family emergency.
• You may have been waiting for additional income information before filing your return.
• You may have intentionally not filed your return because you owe taxes and cannot afford to pay them.

If you receive Notice CP516, you should take the following steps:

• Review the notice carefully and make sure that you understand the information it contains.
• Gather all of your tax documents for the year or years in question.
• File your tax return as soon as possible. You can file electronically or by mail.
• If you owe taxes, you can make a payment arrangement with the IRS.

What are the consequences of not filing your tax return:

There are a number of consequences for not filing your tax return, including:

• The IRS may prepare a return for you based on the information they have available. This may result in you paying more in taxes than you owe.
• You may be charged a penalty for late filing.
• You may be charged interest on any unpaid taxes.
• The IRS may withhold your refund from future tax years.
• The IRS may file a lawsuit against you to collect the unpaid taxes.

The best way to avoid receiving Notice CP516 in the future is to file your tax return on time and in full. If you are unable to file your return on time, you can request an extension. You can also make estimated tax payments throughout the year to avoid owing a large balance at the end of the year.