Understanding IRS Form 15103: How to Respond to a Return Delinquency Notice

Receiving a notice from the Internal Revenue Service (IRS) can be a stressful experience. One such notice you might encounter is Form 15103, officially titled "Form 1040 Return Delinquency." This form is your opportunity to communicate with the IRS when they believe you have an unfiled tax return. This article provides a comprehensive overview of Form 15103, why you might receive it, and how to properly respond. 

What is Form 15103? 

Form 15103 is a response document sent by the IRS to taxpayers who they believe have a delinquent, or unfiled, Form 1040 tax return. It is not a tax form in the traditional sense; rather, it is a communication tool. The primary purpose of Form 15103 is to allow you to explain your filing situation to the IRS. You may receive this form along with other IRS notices, most commonly the CP59, CP516, or CP518 notices, which all relate to unfiled returns. 

Why Did I Receive Form 15103? 

The most common reason for receiving Form 15103 is that the IRS' records indicate you were required to file a tax return for a specific year, but they have not received it. The IRS' Return Delinquency program is designed to identify and contact taxpayers who have not filed.  

How to Complete Form 15103 

Form 15103 is a two-page document that asks for specific information to resolve your filing discrepancy. It is crucial to fill out the form completely and accurately. The form is divided into several sections: 

Contact Information 

This section requires your basic information, including your name, Social Security Number, and current address. If your address has changed from what the IRS has on file, you should update it here. 

Indicate Your Circumstances 

This is the core of the form, where you explain your situation. You have several options: 

•I already filed my tax return: If you have already filed the return in question, you will check this box and provide the date you filed, the tax form number, and the name(s) shown on the return. It is highly recommended to attach a signed and dated copy of the return as verification. 

•The person addressed on this notice is deceased: If the notice is for a deceased individual, you will provide the date of death and indicate if a final Form 1040 or a Form 1041 (for an estate or trust) was filed. 

•I don’t think I have to file a tax return: If you believe you were not required to file, you must explain why. The form provides checkboxes for common reasons, such as your filing status, age, blindness, and whether you could be claimed as a dependent. You will also need to state your total income for the year in question. 

•I have a refund from a prior year that I applied to my taxes or made estimated tax payments: This section is for taxpayers who have a credit from a prior year and want to apply it to another tax period or receive it as a refund. 

Signature 

Finally, you must sign and date the form under penalties of perjury, declaring that the information you have provided is true, correct, and complete. 

The Legal Framework for Filing 

The requirement to file a tax return is not arbitrary; it is rooted in the law. The Internal Revenue Code (IRC) contains the statutes that govern federal taxation. 

•IRC § 6011 establishes the general requirement for any person liable for any tax to make a return or statement according to the forms and regulations prescribed by the Secretary of the Treasury. 

•IRC § 6012 specifies which individuals are required to make returns of income, based on factors like gross income, filing status, and age. 

These legal requirements are further detailed in Treasury Regulations, such as 26 CFR § 1.6012-1, which provides specific income thresholds for filing. 

Penalties for Failure to File 

Ignoring a notice of delinquency can lead to significant financial consequences. The IRS is authorized by the IRC to impose penalties for failing to file a tax return on time. 

According to IRC § 6651, the penalty for failure to file is generally 5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25% of the unpaid tax. If the failure to file is fraudulent, the penalty increases to 15% per month, with a maximum of 75%. 

In addition to the failure-to-file penalty, there is also a failure-to-pay penalty of 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid, also capped at 25% of the unpaid tax. 

Conclusion 

Receiving IRS Form 15103 is a serious matter, but it is not a cause for panic. It is an opportunity to clarify your tax situation with the IRS. Whether you have already filed, were not required to file, or need to file a delinquent return, responding promptly and accurately is the best course of action. By understanding the purpose of the form and the legal context behind it, you can navigate the process effectively and avoid unnecessary penalties. 

To learn more about how to fix your IRS issues, click the link to watch the free video, The Ultimate Guide to Solving Your IRS Tax Problems.

https://lp.constantcontactpages.com/sl/aaYxHYQ/guideirstaxproblems