IRS Notice CP81 Explained: What It Is and What To Do
IRS Notice CP81 is a “last chance” notice from the IRS to inform a taxpayer that the taxpayer has a credit balance on their IRS account for the tax year mentioned in the notice but the taxpayer has not yet filed their tax return for this year and the deadline to file this return to claim a refund is coming soon.
Although not stated explicitly in the Notice CP81 itself, internal IRS guidelines indicate that this notice is sent to the taxpayer when their refund deadline is within the next six months.
Table of Contents
IRS Notice CP81 At a Glance
| Notice Type: | Reminder Notice |
| Generated By: | IRS Service Center |
| Preceded By: | CP59 |
| Recommended Action: | File Tax Return Before Refund Deadline |
IRS Notice CP81 Explained, Part by Part
Here is a full explanation of the Notice CP81, part by part.
Part 1: Account Summary
The first thing you’ll see on your CP81 Notice is — in big, bold font — the credit balance on your IRS account for the tax year for which the notice pertains and a reminder to you that the IRS has not yet received your tax return for this year.
Part 2: Information About Refund Deadline
Next the IRS informs you that “the statute of limitations for claiming a refund for the tax year shown above will soon expire.”
This is a fancy way of saying, “The deadline for you to file your return for this year and get a refund from us upon filing that return is about to expire.”
You have three years from the due date of a return — or the extended due date if you obtained a valid extension — to file that return if you want to be issued a refund from the IRS for that year.
For example, our client received a CP81 Notice in November 2024 regarding his 2021 tax return.
This is because the refund deadline for his 2021 tax return expires April 15, 2025 — three years from the 2021 return’s original deadline in April 2021.
Therefore, our client needed to file his 2021 tax return by April 15, 2025, if he wanted to get a tax refund upon filing this return.
Of course, you may or may not be in a refund position for the year for which you received the CP81 Notice — if you are not in a refund position for the year, the refund deadline is irrelevant to your situation.
Part 3: What You Need to Do Now
In the last part of the CP81 Notice, the IRS tells you what you need to do immediately.
If you do have a filing requirement for the year in the notice, you should file your tax return immediately.
If you already filed this tax return, the fact that you received a CP81 Notice means that the IRS likely misplaced it and you should send a newly signed copy to the address on the notice.
Why the IRS Sends Notice CP81
The IRS sends Notice CP81 to inform a taxpayer that they need to file their return very soon or they will lose any opportunity to be sent a tax refund for the year in the notice.
What to Do If You Received Notice CP81 From the IRS
Below are the steps you should take after you receive a CP81 Notice.
Step 1: Determine your refund deadline.
First of all, you need to determine when the actual refund deadline — the date on or before which you must file your return or you lose any tax refund for that return — is.
Remember, this date is three years from the original due date of the return or, if you obtained a valid extension for the year, three years from the extended due date of the return.
Step 2: File your return by this deadline.
Assuming that you expect a refund for this tax year, be sure to file your return by this deadline.
Not sure how to file a tax return for a tax year from years ago? Read this article or check out my video below in which I tell you, step by step, how to file a back tax return.
Author:
Logan Allec, CPA, Founder and Owner
Logan Allec has been serving taxpayers as a CPA for over 14 years. After leaving his role at a "Big 4" firm, he started Choice Tax Relief to help everyday Americans who have found themselves behind on their taxes. He also educates thousands of people daily about tax relief on his YouTube channel. In addition to his CPA license, Logan also has a Master's Degree in Taxation from the University of Southern California (USC). He lives with his wife and children in the Los Angeles area. Learn more about Logan here.
