The CP136 is good news. The IRS removed a penalty from your account. This could be the result of a First-Time Abatement request, a reasonable cause abatement, an administrative adjustment, or a correction of an erroneously assessed penalty. Your account balance has been reduced by the penalty amount.
Verify the Details
Confirm that the correct penalty was removed. If you requested abatement of a failure-to-file penalty but the IRS removed a failure-to-pay penalty instead, the wrong penalty was addressed. Review the notice to identify which penalty was removed and for which tax period.
Also verify that the associated interest was reduced. When a penalty is removed, the interest that accrued on that penalty should also be adjusted. If the interest wasn't reduced, contact the IRS to request the corresponding interest adjustment.
What If You Requested More
If you requested abatement of multiple penalties and only one was removed, the CP136 may be partial relief. Check whether additional correspondence is forthcoming addressing the remaining penalties. If not, follow up with the IRS to determine the status of the rest of your abatement request.
Keep This Notice
File the CP136 with your tax records. It serves as proof that the penalty was abated, which can be relevant for future compliance determinations. If the IRS ever reasserts the penalty, the CP136 is your documentation that it was previously removed.
If you received a CP136 but believe additional penalties should be removed, call us at (813) 229-7100.