IRS Notice CP516: Unfiled Tax Return — Request to File

What does an IRS CP516 notice mean?

A CP516 tells you the IRS expected a tax return for a specific year and has not received one. The IRS reaches this conclusion from third-party data — W-2s, 1099s, and similar forms — suggesting you had enough income to require filing. It is a request to file, not yet an assessment of tax.

Why did you receive a CP516?

Income reported to the IRS by employers or payers indicates a filing requirement for the year in question, but no matching return is on file. This can happen if you genuinely did not file, filed under a different name or status, or were not actually required to file.

How to respond to a CP516 notice

If you should have filed, prepare and submit the return as soon as possible — filing voluntarily usually produces a better outcome than letting the IRS estimate your tax. If you were not required to file (for example, income below the threshold or amounts that were not taxable to you), respond using the notice's form or contact the IRS to explain, keeping documentation.

What happens if you ignore it?

The IRS may file a Substitute for Return (SFR) on your behalf, computed without your deductions, credits, or exemptions, which typically overstates the tax owed. That assessment then triggers balance-due and collection notices.

Common resolutions

• File the missing return
• Respond explaining why no return is due

Related IRS notices

• CP518 — Final Notice — Unfiled Return
• CP59 — Unfiled Return Inquiry
• CP63 — Refund Held — Unfiled Returns
• CP88 — Refund Held — Delinquent Return