The CP220 notifies you of changes to penalties or interest on your business tax account. This could be a new penalty assessment, an adjustment to an existing penalty, or a change in interest calculations. The notice shows what changed and the resulting balance.
What Triggers a CP220
Common triggers include a late filing penalty assessed after the IRS processed a delinquent return, an adjustment to the failure-to-deposit penalty after the IRS reconciled your employment tax deposits, interest recalculations based on corrected payment dates, and penalty abatements that changed the interest computation.
Verify the Changes
Compare the CP220 to your records. If a penalty was assessed for late filing, verify whether the return was actually filed late. If the failure-to-deposit penalty was adjusted, compare the IRS's deposit history to your EFTPS records. If interest was recalculated, verify the dates and amounts the IRS used.
Request Abatement If Applicable
If a new penalty was assessed that you believe is abatable, request abatement through FTA or reasonable cause. If the interest change resulted from an incorrectly assessed penalty that was later removed, verify that the interest was properly adjusted. Interest adjustments should flow automatically when penalties are abated, but they don't always.
If you've received a CP220, call us at (813) 229-7100.