Beware for Incorrect CP59 Notices for 2024 Extended Tax Returns

Tax practitioners have recently observed a concerning trend regarding CP59 notices. Clients are receiving CP59 notices issued by the IRS despite having filed valid extensions on time or having had their tax returns accepted for the 2024 tax year. 

The IRS has recognized that processing delays may be contributing to the issuance of these "false" CP59 notices. It is recommended that taxpayers who receive such notice take the following steps:

1. Verification - confirm that the extension and/or return was filed and accepted by checking e-file confirmations and IRS transcripts.
2. Response - if there is a disagreement with a CP59 notice, taxpayers should complete Form 15103 (Form 1040 Return Delinquency) and submit it to the IRS via mail, fax, or upload directly online.

It is essential to understand that receiving a CP59 notice may be indicative of processing delays within the IRS rather than an indication of an unfiled return. Timely responses to these notices are crucial for avoiding additional penalties or confusion.

For further guidance on how to address a CP59 notice, please visit https://www.irs.gov/individuals/understanding-your-cp59-notice.