A CP15 notice tells you the IRS has assessed a civil penalty against you and explains why. The IRS calls it a Civil Penalty Notice or Notice of Penalty Charge. It is a notice and demand for payment. The CP15 goes to individuals. The business version is the CP215.

A civil penalty is separate from your income tax. It sits on its own penalty account. The notice names the penalty, shows the penalty amount, any interest, and the total balance due, and gives a short explanation of the penalty and the Internal Revenue Code section behind it. A three-digit penalty reference number identifies the penalty type.

Common Reasons for a CP15

  • Information return penalties, such as filing Forms 1099 late or in a format the IRS could not process
  • International information return penalties, such as those tied to Form 3520 or Form 3520-A for foreign trusts and foreign gifts
  • Promoter and aiding-and-abetting penalties under IRC 6700 and 6701
  • The civil penalty for false information on a Form W-4

What to Do

If you agree, pay the balance by the date on the notice. Interest keeps running until it is paid. If you can't pay in full, call the number on your notice and ask about payment options.

If You Disagree

Mail a written response to the address on the CP15 with your explanation and supporting documents. Many civil penalties can be removed for reasonable cause. Explain what happened, why it was beyond your control, and what you did to comply. For penalties on unprocessable information returns, sending corrected, processable returns can reduce the penalty. You can also pay the penalty and file a claim for refund.

Promoter and aiding-and-abetting penalties under IRC 6700 and 6701 have a special rule. To contest them and stop levy while you do, you must pay at least 15 percent of the penalty and file a claim for refund within 30 days of the notice and demand. If the IRS denies the claim, or six months pass without a decision, you then have 30 days to file a refund suit in federal district court.

A CP15 by itself is not a prior opportunity to dispute the penalty. If the IRS later sends you a Collection Due Process notice for this penalty, you can still challenge the penalty in that hearing.

Deadlines

Pay or respond by the date on the notice. Keep copies of everything.

If you received a CP15 and want to fight the penalty, call us at (813) 229-7100.