A CP120 notice means you filed a tax-exempt return, but IRS records don't show your organization as tax-exempt.

That mismatch has to be fixed. How you fix it depends on your situation.

What to Do

If you have a determination letter: Send a copy of the letter the IRS issued recognizing tax-exempt status for your organization or for your parent organization. You can:

  • Fax it to the number in the notice, using a fax machine or an online fax service. If you use an online service, understand its privacy and security policies before you send.
  • Mail it to the address shown on the notice.

If you've never been recognized as exempt: Apply for tax-exempt status. Complete the appropriate application, include the required fee, and mail both to the address on your notice. Publication 557, Tax-Exempt Status for Your Organization, can help with the application.

If you don't qualify or don't want to apply: Complete the appropriate federal income tax return instead of an exempt return.

If you believe you're exempt and not required to apply: Your annual return must show the subsection under which you're claiming exemption.

Why It Matters

Until this is resolved, the return you filed doesn't match how the IRS treats your organization. Sending the right documents is how you settle which return you're supposed to file.

Practical Tips

  • Keep copies of the notice, the determination letter, and everything you send.
  • If you mail documents, use certified mail.
  • Call the IRS number at the top of the notice if you aren't sure what's being asked.
  • You can authorize someone, such as an attorney or accountant, to contact the IRS for you.

If your organization received a CP120 notice and needs help sorting out its status, call us at (813) 229-7100.