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Your organization's tax-exempt status has been revoked for failure to file a Form 990 series return for three consecutive years.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


Frequently asked questions

  • Call 877-829-5500 (a toll-free number), OR
  • Fax your documents to 855-204-6184 using either a fax machine or online fax service. Protect yourself when sending digital data by understanding the fax service’s privacy and security policies, OR
  • Mail your documents to:
    IRS ― TEGE
    P.O. Box 2508
    Cincinnati, OH 45201
  • Call 877-829-5500 (a toll-free number), OR
  • Fax your documents to 801-620-5555 using either a fax machine or online fax service. Protect yourself when sending digital data by understanding the fax service’s privacy and security policies, OR
  • Mail your documents to:
    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-EZ is $275; the user fee for Form 1023, Form 1024 or Form 1024-A is $600. For more information on user fees, see Revenue Procedure 2022-5 (updated annually).

The organization likely will need to file Form 1120, U.S. Corporation Income Tax ReturnPDF, 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 RecordsPDF.

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