IRS Form 15103: Form 1040 Return Delinquency

The IRS takes unfiled tax returns seriously. If you don’t file a tax return and the IRS believes you should have, you can expect the IRS to take action. 

In some cases, the IRS may even file a return for you. This sounds like they’re doing you a favor, but they’re not, as it could lead to the IRS trying to collect taxes you don’t owe. Before it gets to this point, the IRS may first send you a polite reminder (usually in the form of a CP59 Notice) letting you know that you may have a missing Form 1040 tax return.

When the IRS sends you this notification, they’ll often include a request for you to complete IRS Form 15103, Form 1040 Return Delinquency. This form offers you the opportunity to explain to the IRS why you didn’t file that tax return. In this article, we’ll go into detail about what you should do when the IRS asks you to complete Form 15103 and what could happen if you ignore this request. 

Why the IRS Sent You Form 15103 

The IRS will send you a 15103 form if they detect that you haven’t filed a federal income tax return. The IRS knows that not everyone has to file a tax return each year, and if you are one of these exempt taxpayers, then you’ll need to inform the IRS of this fact by submitting Form 15103.

This form can also be used if you have already filed a tax return and you want to let the IRS know by providing them a copy of the supposedly missing tax return. Completing IRS Form 15103 not only makes the IRS’ job easier, but it can also help avoid any potential penalties for unfiled tax returns. 

How to Complete IRS Form 15103 

You’ll begin completing this form by providing your contact information, such as your name, telephone number, and Social Security number. What you fill out next depends on your particular situation, as you’ll only complete the section that applies to you.

The form is pretty self-explanatory, although the one section that might cause the most trouble or confusion is when you want to explain to the IRS that you don’t believe you were required to file a tax return. Note that your reason may not be listed, such as not filing because you didn’t earn more than the standard deduction threshold. In this case, just write out this explanation in the space provided. If you need additional room, continue your explanation on another sheet and attach it to Form 15103.

One section you won’t find on Form 15103 is if you haven’t filed a particular tax return but agree with the IRS that you should. In this case, you don’t need to complete this form and can instead file the missing return and any documents that should accompany it. If you need to file a missing return well after its due date or still have questions about completing Form 15103, consider contacting a tax pro. They can address your concerns and spot any other potential issues or problems that may arise in your situation.

Also, the end of the form will allow you to mention any special situations, such as requesting the IRS apply a credit or estimated tax payment(s) to a tax balance. Once you’re done filling out this form, you can send it to the IRS using the address or fax number provided on the notice the IRS sent you along with Form 15103. 

Ignoring Form 15103 

The only time you can probably get away with ignoring this form is if you filed the missing return within the last eight weeks. In this situation, the IRS probably sent you Form 15103 and the accompanying notice right before your return arrived or got processed. However, in an abundance of caution, even if you mailed in the return within the last eight weeks, you could still complete Form 15103 and attach a copy of the return you just filed.

In practically any other situation, ignoring this form and the notice accompanying it means the IRS may eventually file a substitute for return (SFR). This is when the IRS files a tax return for you, which they do by using information from third parties, such as W-2s or 1099s from your employer and bank. The problem with an SFR is that it likely won’t include all the tax credits and deductions you’re eligible for. As a result, the IRS will conclude you owe taxes when you’re entitled to a refund, or whatever tax bill you have with the IRS will be larger than it should be.

Despite using incomplete information to prepare an SFR, the IRS will expect you to pay the full tax balance. This process will begin with the IRS sending you correspondence, like Notice CP2566 then Notice CP3219, both of which ask you to pay off your tax balance. If you don’t, the IRS will begin the tax collection process, which can include filing liens and imposing levies against you. This could make it almost impossible to obtain new credit or sell a car or home and result in money getting taken out of your bank account or paycheck. 

What Happens After Sending Form 15103 to the IRS 

After you submit Form 15103 to the IRS, you can expect them to confirm it’s been received and processed. Depending on your situation, the IRS may send you one or more requests for additional information. If so, you should respond to these requests as soon as you reasonably can. 

Frequently Asked Questions About IRS Form 15103 

What is IRS Form 15103? 

This is a form the IRS may ask you to complete if they believe you’re missing a tax return and you either didn’t have to file a return for that tax year or you already filed a return. 

If I don’t respond to the IRS with Form 15103, will the IRS file a return for me? 

Yes, the IRS may file a substitute for return (SFR), which is a tax return that the IRS prepares on your behalf. Because the IRS won’t have all your necessary information, you can expect that the SFR to result in you owing more money (or getting back less money) than you’re entitled to under the law. 

What should I do when the IRS sends me Form 1040 Return Delinquency Notice? 

If the IRS is correct in that there’s a tax return you should have filed, then you should file the missing tax return. It might be a good idea to consult with a tax pro for help doing this to minimize any penalties and interest that you might face for the late filing. If the IRS is wrong in concluding you have a missing tax return, then you want to fill out Form 15103, Form 1040 Return Delinquency, and explain your reasons to the IRS. 

Do I still need to complete Form 15103 if I wasn’t required to file a tax return? 

Probably, as the IRS doesn’t realize you weren’t required to file a given tax return. If they did, they never would have sent you the notice mentioning a missing return or Form 15103. 

Still Not Sure How to Respond to IRS Form 15103? 

Maybe you’re not 100% sure about not having to file a tax return for a particular year. Or perhaps you have a complicated financial situation and you want additional guidance on how to present this information to the IRS. Either way, consulting with a tax professional like one from Seattle Legal Services, PLLC, may be a good idea. 

We can help you not only complete Form 15103 but also examine your tax situation to decide the best course of action given your unique situation. Contact us to schedule a free consultation by calling 425-428-5262 or using our online contact form.