IRS Form 15103 | Why Did I Get This Form & How to Complete

Filing tax returns with the IRS is a necessary responsibility for all eligible individuals, serving as a legal obligation in the US. Failure to file tax returns can lead to various consequences, including financial penalties, interest on unpaid taxes, and potential legal actions by the IRS. If you failed to file your tax return/s and received an IRS notice, you most likely also received Form 15103. 

The purpose of this form is for the IRS to determine your reasoning for not filing your return, and a timely response can minimize your risk of non-compliance consequences. Have you received Form 15103 with your notice? Here’s everything you need to know and how to complete it.

What is Form 15103? 

IRS Form 15103, also known as Form 1040 Return Delinquency, is sent out when the IRS believes you have not filed your tax return. While you can receive Form 15103 with other notices, generally, the IRS will include a copy of Form 15103 with the following notices:

• CP59: The IRS sends out this notice when they have no record that you filed your tax return/s.
• CP516: The IRS sends out this notice as a follow-up regarding your late tax return, and that they haven’t received a response from you.
• CP56: The IRS sends out this notice when your installment payment is due.

They send a copy of Form 15103 for you to complete and return to explain why you’re filing late, why you are exempt from filing, or that you’ve already filed.

Why Did I Receive Form 15103? 

Generally, if the IRS believes that you have not filed your tax return/s, or has no record of your return, they will send you Form 15103 for you to explain why you haven’t filed the return.

How to Complete Form 15103 

How you complete Form 15103 depends on your personal tax situation and your reason for not filing your tax return. Failing to file tax returns with the IRS can lead to a range of serious consequences, including penalties, liens, wage garnishments, and collection actions. That’s why it’s important to file timely returns and respond to late notices immediately.

Here’s a breakdown of how to complete Form 15103 for different tax situations.

If the Person Addressed on the Notice is Deceased 

If the person addressed on the notice is deceased, you will need to complete and file Form 15103 to notify the IRS, stating this as the reason for the missing return/s. Here’s how to complete it:

1. Your contact information: This includes your name (or the taxpayer’s name if filing on behalf of someone else), your social security number, your address (if it has changed), your primary phone number with the best time to call, and secondary phone number with the best time to call.
2. Personal circumstances: In this section, you will need to fill out the section titled “If the person addressed on this notice is deceased.” In the box provided, write the date of death of the recipient. If necessary, you will need to file Form 1041 (Income Tax Return for Estates and Trusts) along with Form 15103. If you have already filed a Form 1041, check the box provided, and state the name shown on the return, the Employer Identification Number (EIN), and the Tax return year.
3. Sign and date: At the bottom of the second page, sign and date Form 15103 and mail it to the address provided on your notice.

You Don’t Have to File a Return 

If you’ve received a notice and don’t believe you are required to file a tax return, you will need to complete and submit Form 15103 to explain why you are exempt. Here’s how to complete it:

1. Your contact information: This includes your name (or the taxpayer’s name if filing on behalf of someone else), your social security number, your address (if it has changed), your primary phone number with the best time to call, and secondary phone number with the best time to call.
2. Personal Circumstances: You will need to fill out the section titled “If you don’t think you have to file a tax return for” and write the tax year the return was for. Next, check which filing status applies to you (such as head of household, single, etc.), and check which circumstance/s apply to you (65 years or older, your work was performed in another country, you’re not a U.S. citizen, etc.)
3. Your total income: In the box provided, state your total income for the tax year the return was due.
4. Reason for not filing: In the box provided, state your reason for not filing, for example, “I didn’t file because my earnings were below the filing threshold for my situation.”
5. Sign and date: At the bottom of the second page, sign and date Form 15103 and mail it to the address provided on your notice.

You Already Filed a Tax Return

If you have already filed your tax return/s within the last two months, you don’t need to complete Form 15103 or respond to your notice – chances are the IRS sent the notice before receiving your return. However, it’s best to contact the IRS to confirm they have received your return/s.

If you filed your tax return/s more than two months ago and received a notice, you will need to complete and submit Form 15103 to notify the IRS that you have already submitted the return. Here’s how complete it:

1. Your contact information: This includes your name (or the taxpayer’s name if filing on behalf of someone else), your social security number, your address (if it has changed), your primary phone number with the best time to call, and secondary phone number with the best time to call.
2. Personal Circumstances: You will need to fill out the section titled “If you already filed a tax return”. Check the box to confirm you have sent your return and state the tax year the return is for.
3. Your information: Write your name or the name shown on the return if completing on behalf of someone else.
4. Return information: Next, state the forms you filed (such as Form 1040), then the tax year the return was for, and the date the tax return was filed.
5. Sign and date: At the bottom of the second page, sign and date Form 15103 and mail it to the address provided on your notice.

If you Qualify for a Refund

If you have filed a tax return and found out you were eligible for a refund and applied it to the tax year you received a notice for, you must complete Form 15103 to notify the IRS that you applied your refund to your tax account. Here’s how to complete it:

1. Your contact information: This includes your name (or the taxpayer’s name if filing on behalf of someone else), your social security number, your address (if it has changed), your primary phone number with the best time to call, and secondary phone number with the best time to call.
2. Personal Circumstances: You will need to fill out the final section in the “personal circumstances” section. If you have a refund from a previous tax year, you must state the tax year you applied the refund to.
3. Applying credit to another tax return: If you filed a return and are eligible for a refund and would like to apply the credit to another tax return, state the year of the return you would like to apply the credit to. Next, state your tax form number, the date the tax period ended, and your social security number.
4. Receiving the credit as a refund check: If you are eligible for a refund and would like to receive the credit as a refund check, simply check the box provided.
5. Sign and date: At the bottom of the second page, sign and date Form 15103, and mail it to the address provided on your notice.

What Happens if you Ignore the Notice and Form 15103? 

If you haven’t filed your tax return/s stated in your notice, don’t believe you are required to send a return, or filed over two months ago, you will need to complete and return Form 15103. Failure to respond to your notices can result in serious consequences, including penalties and liens for failure to file and pay.

Furthermore, failing to file may delay receiving any tax refunds you may be entitled to. In more severe cases, the IRS may initiate legal actions, such as filing a Substitute for Return (SFR) on your behalf, which might not consider all available deductions and exemptions, leading to a higher tax liability.

If you disagree with your notice sent with Form 15103, you will need to contact the IRS directly using the number or your notice to discuss your options. Alternatively, you can hire a tax professional to contact the IRS on your behalf to resolve the issue.

How to Submit Prior Returns 

If you have received a notice, such as CP59, informing you that the IRS has no record of your tax return/s, you will need to submit your return along with Form 15103. It’s important to take proactive steps to address the situation and submit the overdue returns to the IRS. Here’s a general guide on how to submit past returns:

• Gather information: Begin by collecting all relevant financial documents, including W-2s, 1099s, and any other income-related documents for the years in question. Also, gather records of deductions and credits to ensure accurate reporting.
• Obtain necessary forms: Identify the specific tax forms for the years you missed. The IRS website provides prior-year forms and instructions. You may also consider using tax preparation software or seeking assistance from a tax professional.
• Complete the return/s: Fill out the tax forms accurately, providing all necessary information for each year. Be thorough in reporting income, deductions, and credits. If you’re missing certain documents, make reasonable estimates and explain any discrepancies in a separate statement.
• Mail the return/s: Once completed, mail each past-due return to the appropriate IRS address for your location. Ensure that each return is sent in a separate envelope.

What If I Can’t Afford to Pay My Tax Bill in Full? 

If you find yourself unable to afford to pay your tax bill in full, the IRS offers various options to help you address your tax liability without incurring unnecessary financial hardship. Here are some steps you can take:

• Installment agreement: Consider setting up an installment agreement with the IRS. This allows you to pay your tax debt in monthly installments. To request an installment agreement, you can use the IRS Online Payment Agreement tool on their website or file Form 9465, Installment Agreement Request.
• Temporary delay: If your financial situation is temporary, you may qualify for a temporary delay in the collection process by getting your account marked as currently not collectible. The IRS may temporarily delay collection efforts if you can demonstrate that paying your tax debt would create a significant economic hardship.
• Offer in Compromise (OIC): In certain situations, the IRS may accept an offer in compromise, allowing you to settle your tax debt for less than the full amount owed. This option is typically considered if paying the full amount would cause financial hardship, or if there is doubt about the taxpayer’s ability to pay the full amount.
• File for Tax Extensions: If you need additional time to gather funds to pay your tax bill, consider filing for a tax extension. An extension gives you extra time to file your return, but it does not grant an extension for paying taxes. Penalties and interest may still apply to any amount not paid by the original deadline, but the penalties for paying late are less than penalties for filing late.

Communication is key. If you’re unable to pay your tax bill, it’s essential to contact the IRS as soon as possible. Ignoring the issue can lead to additional penalties and interest. You can reach out to the IRS at the phone number provided on your tax notice or letter to discuss your situation.

It’s crucial to address the issue promptly rather than ignoring it, as the IRS may be willing to work with you to find a reasonable solution. Keep in mind that interest and penalties may still accrue until the full amount is paid, so taking proactive steps is in your best interest.

When to Seek Professional Help? 

If you have received Form 15103, along with a notice regarding a late tax return, it’s important to address the issue immediately. When facing IRS notices regarding late tax returns, seeking professional help can be a wise decision to navigate the complexities and mitigate potential consequences. Filing tax returns late may result in financial penalties, accruing interest, and even legal actions by the IRS. Tax professionals possess the expertise to guide you through the process of addressing late filings.

Working with a professional not only helps avoid further penalties but also provides a strategic approach to negotiating with the IRS, potentially minimizing the overall tax liability. Professionals can also assist in exploring available payment options, setting up installment agreements, or presenting compelling cases for penalty abatement. Their knowledge of tax laws and experience in dealing with the IRS can be invaluable in resolving issues efficiently and safeguarding individuals from more severe consequences associated with non-compliance.

If you have received Form 15103 and disagree with the notice, or are unsure how to complete and return it, contact the qualified team at W Tax Group today for a consultation.