"The IRS sent me a letter. I haven't filed taxes in two years. Am I in trouble?"
First, open the damn envelope.
I know. That's probably not the sophisticated tax advice you were expecting from an Enrolled Agent. But you'd be surprised how much anxiety comes from a piece of paper nobody has actually read. Some people receive an IRS letter and immediately imagine the worst. Others put it on the kitchen counter, promising to deal with it over the weekend.
Three weekends later, that envelope has become part of the furniture.
Here's what I want you to understand: An IRS letter about an unfiled tax return does not automatically mean you owe thousands of dollars, are being audited, or are facing criminal charges.
It means you need to find out exactly what the IRS is asking.
And that starts with reading the notice.
Why Is the IRS Asking About an Old Tax Return?
The IRS receives information from employers, financial institutions, and other organizations. That information can help the agency identify situations where a taxpayer may have been required to file a return but apparently didn't.
One example is an IRS CP59 notice.
According to the IRS explanation of Notice CP59, the notice means the agency has no record of receiving a federal individual income tax return for the year identified.
The IRS generally asks you to file the missing return or explain why you weren't required to file.
Notice what I didn't say.
I didn't say the IRS has already determined your final tax liability.
Those are two different matters.
A missing return is a filing issue. An unpaid balance is a payment issue. Sometimes both exist, but we need to establish the facts before treating them as the same problem.
Step One: Read the Letter, Not Your Imagination
Look for four things:
The notice number. You may see a code such as CP59, CP59SN, or another IRS notice identifier.
The tax year. Is the IRS asking about 2023, 2024, or another year?
The requested action. Does the letter ask you to file, explain why you didn't need to file, provide information, or pay a balance?
The response deadline. Mark the date and follow the specific instructions.
You can compare the notice with the IRS's official notice and letter guidance.
If you believe the letter is fraudulent, verify it through an official IRS channel rather than calling a suspicious number supplied in an unsolicited message.
And keep the original notice. That paper may be important later.
Step Two: What If You Already Filed That Return?
Now we're getting somewhere.
Maybe you mailed your return. Maybe your electronic filing was rejected. Perhaps the IRS simply hasn't processed it yet.
Before preparing another return, check your records.
Look for an electronic filing acceptance confirmation, mailing records, a signed copy of the return, or other proof of submission.
If you received a CP59 notice, the IRS provides specific instructions for taxpayers who recently filed or believe the return was already submitted.
Don't blindly file a duplicate return without checking what happened to the first one.
That's like ordering another refrigerator because the delivery truck is running late. You might solve one problem by creating an entirely new one.
Step Three: What If You Really Haven't Filed?
Then we need to determine whether you were required to file for that year.
Filing requirements depend on factors such as income, filing status, age, type of income, and the rules applicable to that tax year.
If a return was required, the next step is gathering the necessary information and preparing it accurately.
That might involve old W-2s, 1099s, self-employment records, mortgage information, or other supporting documents.
If records are missing, don't assume the situation is hopeless. There may be ways to obtain or reconstruct some of the information.
The IRS advises taxpayers to file past-due returns even when they cannot immediately pay the full tax due.
But don't overlook the specific filing instructions or destination provided in your notice.
Step Four: What If You Owe Money?
This is where many people become hesitant.
They think, "If I file, I'm going to owe money. So maybe I should wait until I can afford it."
I understand the reasoning. But from a tax compliance perspective, delaying a required return can make the financial problem worse.
Filing a return and paying the resulting liability are separate obligations.
When tax is owed, applicable interest and penalties can continue to increase. The IRS also offers payment arrangements for eligible taxpayers who cannot pay everything immediately.
That doesn't mean every taxpayer qualifies for every program.
It means the available options should be examined after the facts are established.
Don't let an unknown balance frighten you into ignoring a known filing obligation.
And Don't Forget Maryland
Living in Baltimore means you may have both federal and Maryland filing responsibilities.
The Comptroller of Maryland also sends filing inquiry notices when its records don't identify a corresponding state return in circumstances that warrant further review.
A Maryland notice is not automatically proof that you owed Maryland income tax or were required to file.
The correct response depends on your residency, income, and the year involved.
Maryland explains these notices in its official Personal Tax Tip 35.
And here's an important distinction: resolving an IRS filing issue doesn't necessarily resolve a separate Maryland filing issue.
We need to examine both.
A Fictional Example: The Letter Marcus Kept Avoiding
Marcus lives in Northeast Baltimore. He worked for an employer in 2023, changed jobs in 2024, and never filed his 2023 federal return.
Then he receives a notice indicating the IRS has no record of that return.
Marcus assumes he owes a fortune.
But the notice itself doesn't establish that.
A sensible approach would be to review the letter, determine whether he was required to file, collect his 2023 income documents, prepare the return if required, and follow the notice instructions.
If the completed return shows a balance due, the payment question can then be addressed.
If the IRS's information is incorrect, that needs to be documented and handled appropriately.
The point is simple: Marcus needs an investigation, not a panic attack.
Your IRS Letter Action Checklist
Before contacting a tax professional or responding to the agency, gather:
The complete IRS letter, including all pages.
The tax year identified in the notice.
Any previously prepared return for that year.
W-2s, 1099s, and other available income records.
Any Maryland notices involving the same year.
The response deadline and a brief explanation of what you've already done.
Don't send sensitive documents through an unsecured channel. Use an appropriate document-submission method.
Questions People Are Afraid to Ask
Does receiving a CP59 notice mean I'm being audited?
Not necessarily. A CP59 notice concerns a return the IRS doesn't have on record. It isn't, by itself, a notice that an audit has begun.
Can I ignore the letter if I don't think I was required to file?
No. If the notice asks you to explain why you weren't required to file, follow its instructions. Your belief may be correct, but the IRS may need information to resolve the inquiry.
Can I file an old tax return even if I can't pay the balance?
Yes. The IRS instructs taxpayers to file required past-due returns even if they cannot pay the full amount immediately. Payment options can be evaluated separately.
What if the letter came from Maryland instead?
Review the Maryland notice separately. Federal and Maryland filing requirements are related but not identical, and each agency may require its own response.
The Bottom Line
An IRS letter deserves your attention. It doesn't deserve unlimited control over your imagination.
Read it. Identify the issue. Gather the facts. Determine what needs to be filed or explained.
That's how we turn a frightening envelope into a manageable set of decisions.
At Leather Mae Tax Services, I help people work through prior-year tax preparation, missing returns, and tax notices. My approach is straightforward: understand the situation, prepare accurate work, and explain what comes next.
We take integrity seriously.
Questions? Text or call me at 443-800-5283, or book a time that works for you.
Tell me which tax year the letter concerns and what it's asking for. We can start there.
Leather Mae Tax Services
6809 Belair Road, Suite 306
Baltimore, MD 21206
Individual filing requirements, response procedures, penalties, refund eligibility, and payment options depend on the particular notice, tax year, and taxpayer's circumstances. This article provides general educational information, not a determination of your individual tax obligations.
