IRS CP518
Final Notice — File Your Tax Return Now
Final IRS demand to file a missing return — enforcement follows.
Deadline
Immediate — file within 10 days of the notice date
CP518 is the last notice before SFR assessment and full enforcement. After this notice, the IRS can assess tax, file a lien, and issue a levy without further warning.
Act within days — enforcement is imminent or already in progress.
What IRS CP518 Means
CP518 is the final notice in the IRS's delinquent return sequence — it follows earlier notices (CP259) and represents the IRS's last formal request before taking unilateral action. At this point, the IRS has identified a filing obligation and has not received a return despite prior contact.
After CP518, the IRS will file a Substitute for Return (SFR) using the income information they have on file — with no deductions, exemptions, or credits. The resulting assessment will then move directly into collection: liens, levies, and wage garnishment can follow rapidly.
This is the most urgent compliance notice the IRS issues short of actual enforcement. The 10-day window is not a soft deadline — file the return or contact a tax professional immediately to prevent an SFR and its associated penalties from compounding your situation.
What the IRS Can Do If You Don't Respond
- File a Substitute for Return on your behalf with maximum tax assessment
- Assess the resulting balance plus failure-to-file penalties (up to 25% of unpaid tax)
- File a Notice of Federal Tax Lien against your property
- Issue a levy on wages, bank accounts, and other assets
- Assign a Revenue Officer to your account for aggressive collection
- Refer the case for civil or criminal investigation in cases of willful noncompliance
What You Should Do Right Now
- 1
File the required return immediately — do not wait
- 2
If you cannot file immediately, contact the IRS or a tax professional to request additional time
- 3
Gather all income records — if you are missing W-2s or 1099s, request transcripts from the IRS
- 4
Work with a CPA to prepare an accurate return quickly
- 5
After filing, request penalty abatement for the late filing
Resolution Options Available to You
Frequently Asked Questions About IRS CP518
How is CP518 different from CP259?
CP259 is an earlier notice requesting that you file your return. CP518 is the final notice — it means the IRS has exhausted its informal requests and is about to take action. The IRS will file an SFR and begin collection after CP518.
Can I still file after receiving CP518?
Yes — filing the return is the most important action you can take. Even a late return filed after CP518 prevents the SFR and gives you control over your tax calculation. File immediately.
What if I genuinely had no filing obligation for that year?
Respond to CP518 in writing explaining why no return was required — for example, your income was below the filing threshold or you had no taxable income. Include supporting documentation.
What happens to penalties once I file?
Filing the return establishes the correct tax base. Penalties (failure-to-file) can then be challenged through first-time abatement or reasonable cause. Penalties cannot be abated until a return is filed and the correct tax is established.
Professional References
IRC: IRC §6020(b) — Substitute for Return; IRC §6651 — Failure to File
IRM: IRM 5.19.2 — Delinquent Return Investigation — Final Notice
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