The CP187 is a penalty assessment notice for certain business tax returns. It functions similarly to the CP215 but may appear for different return types or penalty categories. The notice shows the penalty type, amount, and the tax period affected.
Common Penalties on CP187
The CP187 may cover late filing penalties for business returns, estimated tax penalties for corporations, information return penalties (for late or incorrect 1099s, W-2s), and failure-to-deposit penalties for employment taxes. The specific penalty is identified on the notice.
Abatement Options
The same abatement strategies apply as for any business penalty. First-Time Abatement if the business has a clean compliance history for the past three years. Reasonable cause if circumstances beyond your control prevented timely filing, payment, or deposit. Administrative waiver if the penalty was assessed in error.
For information return penalties specifically, the IRS provides de minimis safe harbor relief for a small number of incorrect returns corrected within 30 days. If you filed 100 correct 1099s and 3 had errors, the penalty on those 3 may be reduced under the de minimis rules.
Don't Pay Automatically
Business penalties add up fast. Before paying, check whether abatement applies. A 5-minute phone call for FTA or a well-drafted abatement letter can eliminate thousands in penalties.
If you've received a CP187, call us at (813) 229-7100.