IRS Notice CP259: your business return wasn't filed
Last updated · Reviewed for accuracy against IRS.gov guidance
CP259 says the IRS shows your business is required to file a return for the periods listed but hasn't. File the return immediately, or, if you weren't required to file, complete the enclosed response form. A notice is sent for each form and period, so several can arrive at once. Ignoring it can lead to IRS-prepared returns.
Business tax relief assessment
Why you got a CP259
When a business applies for an EIN, the IRS sets filing requirements for specific returns — for example Form 941 or Form 940 if you indicated employees. If those returns don't arrive, the IRS sends CP259. Per the IRS, a separate notice is mailed for each tax form and tax period shown as delinquent, which is why some businesses receive a stack.
What to do
- File now, electronically with all schedules if eligible, or on paper.
- If you filed within the last four weeks using the same name and EIN, the IRS says you may disregard the notice.
- If you weren't required to file, complete the enclosed response form and mail it, or fax it to the number the IRS lists on its CP259 page.
- If you had no employees or business activity for the period, the IRS says you're not required to file that return — but you still must respond. If you made deposits or other payments for the period, you must file a signed return showing them.
Can't pay when you file?
File anyway. The failure-to-file penalty (5% a month, up to 25%) is far larger than the failure-to-pay penalty. The IRS notes you can request a payment plan — see payroll payment plans. For catching up on several quarters, see unfiled 941 returns.
Is the notice real?
Confirm a CP259 is genuine before acting on it. Sign in to your IRS business tax account or request a business account transcript and check that the period and amount match. If you call, use the number printed on the notice only after confirming it matches the one IRS.gov lists for that notice. The IRS doesn't demand payment by gift card, cryptocurrency or wire transfer to an individual.
Closing or never had employees?
If the business closed, file final returns and check the "final return" box so filing requirements stop — see closed business payroll taxes. If you never had employees, responding through the form updates your filing requirements. Use the business assessment if missing returns are part of a larger tax problem.
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Start the calculatorFrequently asked questions
Why did I get several CP259 notices?
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The IRS sends one for each form and tax period it shows as unfiled.
I never had employees. Why am I getting this?
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Filing requirements are set when the EIN is issued based on your application. Respond with the enclosed form to correct them.
Do I file a zero return?
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If you had no employees or activity, respond with the form. If deposits were made for the period, file a signed return showing them.
What if I just filed?
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If you filed within the last four weeks under the same name and EIN, the IRS says you may disregard the notice.
Can the IRS file the return for me?
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For some business returns, including employment tax returns, the IRS can prepare a substitute return under section 6020(b).
Related topics
Sources
IRS figures on this page (rates, fees, thresholds) verified as of 2026-11-04. See our editorial policy.
TaxSettlementCalculator.com is not a tax firm, law firm, CPA, or government agency and is not affiliated with the IRS or any state tax agency. Estimates are for educational purposes only and are not tax, legal, or financial advice. Results vary based on individual circumstances, and no outcome is guaranteed. We connect users with independent tax relief professionals.