IRS Notice CP518: Why you received it and what to do next
IRS Notice CP518 is a final reminder that the IRS still has no record of a tax return it believes you were required to file. It does not automatically mean you owe tax, but it does mean the IRS expects you to resolve the missing-return issue.
The IRS updated several CP518 FAQs on March 25, 2026, including guidance for recently filed returns and the use of Form 15103.
If CP518 relates to the 2025 tax return due in 2026, remember that qualifying U.S. citizens and resident aliens living and working abroad generally received an automatic filing extension until June 15, 2026. CP518 can also relate to older tax years, however, so always check the tax year printed on the notice.
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Table of Contents
Why did I receive IRS Notice CP518?
You generally receive CP518 because the IRS believes you were required to file a federal tax return for a particular year and has no record of that return being filed.
That can happen for several reasons:
- You did not file the return.
- You filed it, but the IRS has not processed it or matched it to your account.
- Income or other information reported to the IRS indicates that you may have had a filing requirement.
- You believed you were not required to file, but the IRS reached a different conclusion based on its records.
The IRS can identify a potentially missing return by comparing information on your account with records reported by employers, financial institutions, and other third parties, as well as information from previous tax returns.
What should you do after receiving CP518?
Check the tax year on the notice first, then respond according to what actually happened with that return.
- What if I haven’t filed the return? Prepare the delinquent return and send it according to the instructions on your notice. The IRS says a past-due return sent in response to a notice should be sent to the location specified in that notice. CP518 also instructs taxpayers to include Form 15103 where applicable.
- What if I already filed it? Check how recently you filed before sending another copy. Under the IRS’s current CP518 guidance, if you filed within the past eight weeks, you generally do not need to take any action. If more than eight weeks have passed since you filed, the IRS tells you to complete Form 15103 and send a signed and dated copy of the return.
- What if I wasn’t required to file? Tell the IRS why rather than ignoring the notice. Form 15103 can be used to explain that no return was required. If you are submitting only Form 15103 for that reason, the IRS currently allows it to be submitted online through an IRS Online Account.
- What if I can’t afford to pay? File the return even if you cannot pay the whole balance immediately. The IRS specifically advises taxpayers to file past-due returns regardless of whether they can pay in full. Payment plans and other options may then be available for the balance.
What happens after CP518 if you don’t respond?
If the missing return remains unresolved, the IRS may move beyond reminders and begin determining the tax it believes you owe.
What can happen after IRS Notice CP518?
|
Stage |
What happens |
What it means for you |
|
CP518 remains unresolved |
The IRS still has no satisfactory return or explanation |
Penalties and interest may continue, and a refund may be delayed |
|
Substitute for Return (SFR) |
The IRS may prepare a return using income information already reported to it |
The calculation may not include every deduction, credit, or exemption you could claim |
|
CP3219N Notice of Deficiency |
The IRS proposes a tax assessment based on the information it has |
You generally have 90 days to petition the US Tax Court, or 150 days if the notice is addressed to you outside the United States. The exact deadline appears on the notice. |
|
Assessment and collection |
If the proposed tax becomes assessed and remains unpaid, the balance can enter collection |
Later action can include normal IRS collection procedures |
There is no guarantee that every unanswered CP518 follows the same path. However, current IRS guidance shows how an unresolved nonfiler case can progress.
Got a CP518? Take action before the IRS moves forward.
CP59 vs. CP518: What’s the difference?
CP59 is generally an earlier notice that a tax return appears to be missing, while CP518 is a final reminder later in the IRS nonfiler process.
CP518 generally follows an unresolved CP59 after eight weeks, but not every case follows the same notice path. For example, CP515 may be issued when CP59 is returned undeliverable with a forwarding address, while certain cases receive CP516 instead.
Why is CP518 different for Americans living abroad?
CP518 can be more complicated for Americans abroad because a US filing requirement may still apply even when all income is earned overseas and little or no US tax is due.
US citizens and resident aliens generally remain subject to US filing rules on worldwide income. Qualifying taxpayers abroad generally had until June 15, 2026 to file.
Foreign tax credits and the Foreign Earned Income Exclusion may reduce or eliminate US tax, but they do not automatically remove the requirement to file.
Foreign accounts, investments, pensions, or businesses may also create separate reporting obligations, making CP518 one part of a wider compliance issue.
Can US expats still use Streamlined Filing after receiving CP518?
Receiving CP518 does not automatically disqualify an otherwise eligible taxpayer from the Streamlined Filing Compliance Procedures.
For an expat with several years of overdue filings, this distinction can be crucial.
- Does CP518 itself prevent me from using Streamlined? No. Receiving CP518 alone does not automatically disqualify you from the Streamlined procedures. You must still meet the normal eligibility requirements, including certifying that your noncompliance was non-willful.
- What if the IRS has already opened an examination? A formal IRS civil examination can make you ineligible for Streamlined. The IRS states that taxpayers already under civil examination for any taxable year cannot use the Streamlined procedures. Taxpayers under IRS Criminal Investigation are also ineligible.
Receiving CP518 is not the same as being under examination. However, Streamlined eligibility ends if the IRS initiates a civil examination before the submission or the taxpayer becomes subject to an IRS Criminal Investigation.
- Can my Streamlined return still be audited later? Yes. A Streamlined submission can still be selected for audit after filing. Streamlined returns are not automatically audited, but they remain subject to the IRS’s normal examination process.
When might professional help be worthwhile?
Professional help can be especially useful when CP518 is part of broader US tax compliance issues rather than a single missing return.
You may want advice if:
- several years of US returns are missing;
- FBARs or international information returns may also be overdue;
- you own foreign investments, companies, trusts, or other complex international assets or structures;
- you are unsure whether your previous noncompliance was non-willful;
- you have received several IRS notices; or
- you are uncertain whether the IRS has already begun an examination.
For one uncomplicated missing return, you may be able to resolve CP518 yourself. For several years of international noncompliance, there can be more to consider than simply filing the return identified on CP518.
Frequently Asked Questions
Can CP518 delay my tax refund?
Yes, an unresolved past-due return can cause the IRS to hold or delay a refund. The IRS may hold a refund when its records show that required returns from earlier years are still missing. Resolving the outstanding return can therefore be necessary before the refund is released.
Can I e-file a past-due return after receiving CP518?
Possibly, depending on how old the return is and which e-file provider you use. Current IRS CP518 guidance states that the two most recent prior-year returns can be filed electronically if you find a provider that supports prior-year e-filing. Older returns generally need to be filed on paper according to the instructions on the notice.
Could I lose a refund by waiting too long to file the missing return?
Yes. A refund can be lost if the return is filed after the applicable refund-claim deadline. The IRS generally requires taxpayers claiming a refund of withholding or estimated tax payments to file within three years of the return’s due date. Extensions and limited exceptions can affect the precise deadline. This can make an old unfiled return worth checking even when you do not expect to owe tax.
What if CP518 was sent to my old address?
You should still deal with the missing-return issue and update your address with the IRS. Individuals can use Form 8822 to report a new home mailing address. The IRS says an address change can generally take four to six weeks to fully process, so updating it sooner can help prevent future notices from going to the wrong place.
Is there a standard deadline for responding to CP518?
The IRS tells CP518 recipients to respond immediately rather than giving one universal response period for every notice. Follow the instructions and any date shown on the CP518 you received, since your notice relates to your specific account and missing return.
