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Resolving the CP518 Business Notice: Addressing Unfiled Tax Returns for Business Owners

Receiving a notice from the IRS can be worrisome, but it’s crucial to understand its purpose and take appropriate actions. The specific notice discussed in this blog post is the CP518 Business Notice, which the IRS sends to businesses to inform them of potential tax filing issues or discrepancies. Understanding the significance of this notice is important because it signals that the IRS has identified a problem that needs attention. Neglecting or ignoring the notice can result in penalties or even an audit, so it’s vital to respond promptly.

The blog post emphasizes the need to respond appropriately and mentions the availability of Priority Tax Relief, a trusted tax service provider that can help navigate the complexities of the IRS notice and ensure a smooth resolution. And aims to offer valuable tips on how to respond, such as gathering necessary documents, comprehending the specific issue raised, and preparing a comprehensive response. By following these guidelines and seeking professional assistance, individuals and businesses can address any tax-related issues and minimize potential negative consequences.

CP518 Business Notice: Why It Matters for Your Business and Tax Compliance

The CP518 Business Notice serves as a final reminder sent by the IRS when they have no record of your previously filed tax returns. This notice is a crucial notification that calls for immediate attention to address any outstanding unfiled tax returns related to your business. The CP518 notice carries significant implications for your business and tax compliance. Understanding its importance will help you navigate the situation effectively. Here’s why the notice matters:

  1. Unfiled tax returns: The notice alerts you to the fact that the IRS has no record of your business tax returns. Failing to file tax returns can result in penalties, interest, and potential legal consequences. It’s crucial to address this promptly.
  2. Compliance with tax obligations: As a business owner, it’s essential to fulfill your tax obligations by timely filing accurate and complete tax returns. The CP518 notice serves as a reminder to rectify any gaps in your tax filing history.

File or Fax Your Documents and Complete the Response Form

When you receive a CP518 Business Notice from the IRS regarding unfiled tax returns, it’s important to take prompt action to resolve the matter. In this article, we will guide you through two key steps: filing a paper return or faxing your documents and completing the enclosed Response form. By following these steps, you can ensure your response is accurate and timely, helping you navigate this situation smoothly. 

  1. File a paper return or fax your documents: To address your unfiled tax returns, you have two options
    • File a paper return: Complete your tax return along with all required schedules and use the enclosed envelope provided in the notice to mail it. Ensure you include all relevant documents and information.
    • Fax your documents: Alternatively, you can fax your completed tax return and supporting documents to 855-800-5944 using a fax machine or an online fax service. It is crucial to understand the privacy and security policies of the fax service you choose to protect your sensitive data.
  2. Complete the Response form: Included with the CP518 Business Notice, you will find a Response form. Follow these steps to complete it effectively:
    • Fill out the Response form accurately: Provide all necessary information requested, ensuring its relevance to your situation.
    • Choose your submission method: Once completed, you have two options for submitting the form:
      • Mail the form: Place the filled-out Response form in the enclosed envelope provided with the notice and mail it promptly.
      • Fax the form: If you prefer a digital submission, fax the completed form to 855-800-5944 using a fax machine or an online fax service. As before, be mindful of the privacy and security policies of the fax service you select.

Remember, timely and accurate completion of the Response form is crucial for resolving the matter effectively. These tips aim to guide individuals and businesses in providing a comprehensive and timely response to the CP518 notice and highlight the potential consequences of not taking appropriate action.

Consequences of Non-Response to CP518 Business Notice

Ignoring a CP518 Business Notice from the IRS regarding unfiled tax returns can have significant consequences. In this article, we will discuss the potential ramifications of non-response to help you understand the importance of addressing the notice promptly. By being aware of the potential impact on your tax liability and refund status, you can take proactive steps to resolve the situation. 

1. Tax liability determination and accruing penalties

By failing to respond to the CP518 Business Notice, the IRS may take action to determine your tax liability. This means that the IRS will assess the taxes you owe based on their calculations. Consequently, you may be subject to penalties and interest that accrue on the unfiled return. These additional charges can significantly increase the amount you owe, making it essential to address the notice promptly.

2. Delayed refunds

Non-response to the CP518 Business Notice can also impact any refunds you may be owed for the current tax year or previous years. Until the unfiled return is resolved and your tax compliance is established, the IRS may withhold or delay your refunds. This delay can create financial inconvenience and uncertainty, underscoring the importance of addressing the notice and filing your tax returns promptly.

Take the Effective Resolution to to Gain Peace of Mind

Receiving a CP518 Business Notice can be intimidating, but by understanding its purpose and taking the appropriate steps, you can address the situation effectively. Be sure to file your tax returns, complete the Response form accurately, and respond to the notice promptly. If you need assistance or have further questions, consider reaching out to a reputable tax service provider like Priority Tax Relief. Remember, taking proactive measures will help resolve the issue and ensure your tax matters are in order.

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FAQs

 The simple answer is no. A business and a person are completely separate, thus, any personal tax debts or liabilities should not affect your business.

Tax debt can be an exhausting and complicated thing to deal with on your own. Communicating with the IRS and professionally handling your tax liabilities are just two of the services companies like Priority Tax Relief can offer.

No. The IRS’s Innocent Spouse Relief protects you from paying these additional taxes. However, this does not relieve you from household employment taxes, business taxes, individual joint responsibility payments etc. Priority Tax Relief helps you learn more about innocent spouse relief.

The most popular option to date would be an Offer In Compromise (OIC). At Priority Tax Relief, we help tax relief help become more accessible to taxpayers in need and help them understand how they can qualify for these options.

IRS tax liens are legal claims on your property when you do not settle your tax debts. The IRS usually sends out a notice when no payment has been made after a liability assessment. Find out more about tax liens with Priority Tax Relief.

Yes. Not only can the IRS put a claim on all your current property, tax liens can also affect any property or intangible or tangible assets that you obtain in the future. At Priority Tax Relief, we help you understand federal tax liens and how to communicate with the IRS.

 

Tax levies are the actual seizure of your property and are different from legal claims or tax liens. Settle your taxes before the IRS sends out a notice. Priority Tax Relief helps you understand tax levies and how you can avoid them.

Yes. Not only can they seize physical property but they can also legally take hold of the money in your bank account and other wages. To avoid this from happening, contact Priority Tax Relief now.

Your debt will, unfortunately, continue to grow and you will possibly lose a great number of your assets. It is definitely a scenario we do not wish to see happen to anyone, that’s why Priority Tax Relief makes sure that our help becomes within reach.

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