Understanding your CP120A Notice

What This Notice Is About

Your organization's tax-exempt status has been revoked for failure to file a Form 990 series return for three consecutive years. In addition, you are no longer eligible to sponsor a tax-sheltered annuity plan (Internal Revenue Code section 403(b) retirement plan).


What You Need To Do


You May Want To

  • Apply for tax-exempt status.
  • If you apply for tax-exempt status, you may request that your tax-exempt status be reinstated retroactive to the date your exempt status was revoked.
  • You may want to refer to Revenue Procedure 2014-11 for reinstatement procedures.

Frequently Asked Questions

Call 877-829-5500 (a toll-free number). You also can send a copy of the letter by fax or by mail to an office that will handle this problem. The office's fax number is 855-204-6184. Its address is:

IRS ― TEGE
P.O. Box 2508
Cincinnati, OH 45201

Call 877-829-5500 (a toll-free number). You also can send copies of your proof by fax or by mail to an office that will handle this problem. The office's fax number is 801-620-5555. Its address is:

Internal Revenue Service
1973 North Rulon White Blvd
M/S 6552
Ogden, UT 84404

Yes. If an organization's annual gross receipts for the year are less than or equal to $1 million, the IRS can charge the organization a penalty of $20 for each day the return is late, not to exceed the lesser of $10,000 or 5% of the organization's gross receipts for the year. If an organization's annual gross receipts for the year exceed $1 million, the IRS can charge the organization a penalty of $100 for each day the return is late, not to exceed $50,000. The organization's tax-exemption is automatically revoked if it fails to file its return for three consecutive years.

Yes. A penalty will not be imposed if the organization can demonstrate that its failure to file on time was due to reasonable cause. An organization that believes it has reasonable cause for failure to file should attach a cover letter to its return explaining the late filing.

The user fee for an organization that files a Form 1023 or 1024 is $600. For more information on user fees, see Revenue Procedure 2019-4.

The organization likely will need to file Form 1120, U.S. Corporation Income Tax Return (PDF), though it may be responsible for filing other tax returns. For information on business taxes and the appropriate returns to file with the IRS, see Publication 583, Starting a Business and Keeping Records (PDF).

If you have questions and/or need help completing this form, please call 1-877-829-5500. This toll-free telephone service is available Monday through Friday, 7:00 a.m. to 7:00 p.m. CT.

 


Helpful Information


Tips for next year

If you are required to file a tax return:

  • Review the instructions for the return.
  • Keep records of all income and expenses.

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