What This Notice Means
CP259C goes to a tax-exempt organization. It says two things. First, the IRS presumes your organization is a private foundation, not a public charity. That is the IRS's determination. Second, the IRS has no record that you filed Form 990-PF, Return of Private Foundation, for the period on the notice.
That presumption is what separates CP259C from the other CP259 notices. An organization that believes it is a public charity may have filed a Form 990 instead. If you filed the wrong return, the IRS can send it back and ask for the correct one.
What to Do
Complete the Response form that comes with the notice. It has boxes for each situation.
- You already filed. If you filed in the last four weeks using the same name and EIN, you can disregard the notice. If it was longer ago, or you used a different name or EIN, send the Response form with a signed and dated copy of the return.
- You haven't filed. File Form 990-PF and any schedules. If you file electronically, also send the Response form. If you file on paper, mail the return, the Response form, and any tax due in the envelope provided. Explain on the form why the return is late. A late return draws a penalty.
- You don't think you have to file Form 990-PF. Explain why on the Response form and send it back.
Why This Matters
An organization that misses its annual filing requirement for three consecutive years loses its tax-exempt status. To get it back, the organization has to apply again and pay the user fee. An organization that loses exemption is also removed from the IRS list of organizations eligible to receive tax deductible contributions. Donors notice.
If your organization should be a public charity, deal with the classification question now. Don't let it ride while the missed years add up.
If your organization received a CP259C notice and needs its filings or its foundation status sorted out, call us at (813) 229-7100.