CP290 Notice: What It Means for Your Tax-Exempt Status
Summary:
The IRS issues the CP290 Notice to inform taxpayers about changes or updates related to their tax-exempt status. This notice is primarily sent to organizations such as non-profits that may have failed to meet IRS requirements. It serves as a critical step in ensuring compliance with tax laws, protecting organizations from losing their tax-exempt status, and providing a roadmap for corrective actions. Understanding the implications of CP290 and knowing how to respond promptly is essential for maintaining an organization’s tax-exempt standing.
Receiving an IRS notice can be concerning, especially for non-profit organizations that rely on their tax-exempt status to operate effectively. The CP290 Notice is specifically designed to alert tax-exempt organizations to a potential issue or change with their tax-exempt status. Often, this could be due to failing to meet filing obligations, such as not submitting Form 990 for three consecutive years. It’s important to address this notice promptly to avoid further complications or potential penalties. In this guide, we’ll break down what the CP290 Notice entails, how it can affect your organization, and the steps you should take to resolve it efficiently.
Get Competing Personal Loan Offers In Minutes
Compare rates from multiple vetted lenders. Discover your lowest eligible rate.
It's quick, free and won’t hurt your credit score
What is the CP290 Notice?
The IRS issues the CP290 Notice to tax-exempt organizations when there is a change or revocation of their tax-exempt status. This notice serves as a formal communication indicating that the organization has not met the compliance requirements, such as the timely filing of the annual information return (Form 990) or other necessary documents. The failure to adhere to these requirements could result in the organization losing its tax-exempt status.
Non-profits, charities, and other tax-exempt entities are obligated to file Form 990, Form 990-EZ, or Form 990-N annually. If an organization fails to file the required form for three consecutive years, the IRS may automatically revoke their tax-exempt status, which can trigger the CP290 Notice. The CP290 is a critical document because it outlines the reasons for revocation and provides guidance on how to appeal or correct the issue.
While it’s alarming to receive this notice, the CP290 allows organizations to understand why their status was revoked and provides instructions on steps to regain their tax-exempt status. Non-compliance can lead to significant operational and financial consequences, including the need to pay taxes like a regular corporation.
Struggling with IRS notices? If you’ve received an IRS letter and aren’t sure how to handle it, you might want to explore professional tax relief options. Optima Tax Relief has helped thousands of people resolve their tax issues and get back on track with the IRS. Learn more about how they can assist you with your situation.
How the CP290 Notice affects your organization
The implications of receiving a CP290 Notice are serious, as the tax-exempt status is a valuable designation for non-profit organizations. Here’s how the notice can affect your organization:
Loss of tax-exempt status: The most immediate consequence of failing to respond to a CP290 Notice is the loss of your organization’s tax-exempt status. Without this status, your organization may be subject to federal income tax, which can drastically affect your financial planning and operations.
Impact on donations: Tax-exempt status is also important for donors. Many individuals and corporations donate to non-profits because their contributions are tax-deductible. If your organization loses its tax-exempt status, you will need to inform your donors that their future contributions will not be deductible, which could result in a decrease in funding.
Public perception: Revocation of tax-exempt status can damage the reputation of your organization. It may signal to the public and potential donors that there are internal issues with compliance, making it harder to attract support and partnerships.
Back taxes and penalties: If your organization continues to operate without resolving the CP290 issue, you may be liable for paying taxes retroactively, along with penalties and interest for non-compliance.
Responding quickly and efficiently to the CP290 Notice is essential to avoid these negative outcomes and to get your organization back in good standing with the IRS.
Pro tip
Make sure to keep detailed records of all communications with the IRS, including dates, names of representatives, and copies of documents sent. This can be crucial if you need to follow up or escalate your case.
What should you do when you receive a CP290 Notice?
If your organization receives a CP290 Notice, immediate action is critical. Here are the steps to follow:
Read the notice thoroughly: Understand why the IRS issued the notice. The CP290 will provide details on the reason for the revocation or compliance issue and outline the steps you need to take to resolve it.
Verify your records: Ensure that your organization’s filings are up to date. If you haven’t submitted Form 990, 990-EZ, or 990-N for three consecutive years, you will need to correct this immediately. Sometimes, the notice may result from clerical errors or misunderstandings, so verify all your records for accuracy.
Consult with a tax professional: A certified public accountant (CPA) or tax attorney who specializes in non-profits can help you navigate the complexities of the CP290 Notice. They can assist in reviewing your filings and advising on the next steps, including whether to appeal the revocation.
Take corrective action: If the CP290 notice indicates that your tax-exempt status has been revoked, you must submit the necessary forms to reapply for tax-exempt status. This process typically involves completing Form 1023 or Form 1024, along with paying the appropriate user fee.
Submit a reinstatement request: After correcting the issue, your organization may qualify for automatic reinstatement of tax-exempt status if you meet certain requirements. In some cases, organizations may need to file a formal request for reinstatement, which can include documentation proving that the failure to file was unintentional.
By acting quickly, you can minimize the impact of the CP290 Notice on your organization and potentially regain your tax-exempt status without significant disruption.
How to respond to the CP290 Notice
Steps to take when responding to a CP290 Notice
The IRS outlines specific steps for organizations to respond to the CP290 Notice and resolve any issues with their tax-exempt status. Here’s a clear roadmap to follow:
Review the notice details: Begin by carefully reading the CP290 Notice to identify the reason for the IRS’s action. Determine whether it was due to missed filings or other compliance issues.
Check your organization’s filing history: Ensure that all required annual filings, including Form 990 or 990-N, are up to date. If your organization has missed any filings, gather the necessary documents to submit them promptly.
File the correct forms: If you need to reapply for tax-exempt status, you will likely need to file Form 1023 or Form 1024, along with supporting documentation. Ensure all sections are completed accurately to avoid further delays.
Submit a written request: Along with filing the required forms, you should send a formal request to the IRS asking for reinstatement of your tax-exempt status. Include a detailed explanation of why the compliance issue occurred and demonstrate that your organization has implemented corrective actions.
Pay any required fees: Reinstatement of tax-exempt status may involve a user fee. Make sure to include payment with your reinstatement request to avoid any processing delays.
Pro tip
Consider working with a CPA or tax attorney who specializes in non-profit tax law for complex cases. They can provide valuable insights and help expedite the resolution process.
Other ways to handle a CP290 Notice
In addition to filing the required forms, consider these additional actions to address the CP290 Notice:
Seek help from the Taxpayer Advocate Service: If you’re struggling to resolve the issue on your own, the IRS’s Taxpayer Advocate Service can offer guidance and support, particularly if your organization is facing financial hardship or needs expedited assistance.
Document all communications: Keep records of all correspondence with the IRS, including dates and contact names. This documentation can be helpful if you need to escalate the issue or provide further proof of compliance.
Monitor your account status: After submitting your reinstatement request, check your organization’s IRS account status regularly to ensure there are no additional issues or delays in processing your case.
By following these steps, you can ensure that your organization responds appropriately to the CP290 Notice and mitigates any further complications.
Further support options for addressing the CP290 Notice
Dealing with the CP290 Notice can be complicated, but several support options are available:
Consult a tax professional: Working with a CPA or tax attorney who specializes in non-profit organizations can save time and reduce stress. They can help you prepare the necessary paperwork, communicate with the IRS on your behalf, and provide insights on maintaining compliance in the future.
Reach out to the IRS directly: The IRS offers direct support through its Exempt Organizations Customer Account Services. By calling or visiting your local IRS office, you may be able to resolve the issue more efficiently.
Use online resources: The IRS website has several resources for tax-exempt organizations, including guidelines on reinstatement and how to address issues related to revocation. These resources can help you better understand the requirements for maintaining tax-exempt status.
Taxpayer Advocate Service: If your organization is facing significant financial challenges due to the revocation of tax-exempt status, the IRS’s Taxpayer Advocate Service can provide additional support to help resolve the issue.
Seeking professional advice and utilizing available resources can help streamline the process of responding to the CP290 Notice and reinstating your organization’s tax-exempt status.
Potential penalties or next steps if you don’t respond
Ignoring the CP290 Notice can lead to several penalties and challenges, including:
Tax liability: If your organization loses its tax-exempt status, it may be required to pay federal income taxes on any income generated after the revocation date. This could also lead to state and local taxes, further increasing the financial burden.
Loss of deductible contributions: Donors will no longer be able to claim tax deductions for contributions made to your organization. This could significantly impact fundraising efforts and donor relationships.
Accrual of penalties and interest: Continued non-compliance may result in the IRS assessing penalties and interest on any taxes owed, increasing your financial obligations.
Enforcement actions: The IRS could take additional enforcement actions if your organization fails to address the CP290 Notice, such as levying fines or seizing assets.
To avoid these penalties, it is essential to respond to the CP290 Notice promptly and take corrective action.
Pro tip
Use the IRS’s “Exempt Organizations Select Check” tool online to verify your organization’s tax-exempt status regularly. This can help identify any issues early before receiving a CP290 Notice.
What potential outcomes are possible?
After responding to the CP290 Notice, the following outcomes may occur:
Reinstatement of tax-exempt status: If your organization provides sufficient evidence and takes corrective actions, the IRS may reinstate your tax-exempt status, often retroactively to the revocation date.
Approval of compliance plan: The IRS may accept your organization’s compliance plan, which outlines how you will maintain compliance in the future. This can help prevent future issues and secure your tax-exempt status.
Denial of reinstatement: If the IRS determines that your organization did not meet the requirements for reinstatement, you may need to appeal the decision or take further steps to correct any compliance issues.
Regardless of the outcome, addressing the CP290 Notice promptly will improve your chances of a favorable resolution.
Looking for the best way to reduce your tax burden? We’ve compiled a list of the Best Tax Relief Companies to help you navigate tax challenges and save money. Click here to discover trusted experts who can assist you with tax resolution, IRS negotiations, and more!
Frequently asked questions
What is the purpose of Form 990 for tax-exempt organizations?
Form 990 is an annual information return that tax-exempt organizations must file with the IRS to report their financial activities, governance, and operations. It helps the IRS ensure that organizations are complying with tax laws and fulfilling their obligations as tax-exempt entities. Filing Form 990 provides transparency and accountability to the public, which can be crucial for maintaining donor trust and support.
Can an organization continue fundraising after receiving a CP290 Notice?
Yes, an organization can continue fundraising after receiving a CP290 Notice, but it should inform potential donors about the change in tax-exempt status. Contributions made during the period when the tax-exempt status is revoked may not be tax-deductible for donors. Organizations should take prompt steps to resolve the issue and reinstate their tax-exempt status to minimize the impact on fundraising efforts.
How long does it take to get tax-exempt status reinstated after responding to a CP290 Notice?
The time it takes to reinstate tax-exempt status can vary depending on the complexity of the case and how quickly the organization responds to IRS requests. Typically, it may take a few months for the IRS to process a reinstatement request. Expedited processing may be available in certain hardship cases, but it requires the organization to provide sufficient evidence of urgency.
What should organizations do to avoid automatic revocation in the future?
To avoid automatic revocation, organizations should ensure they file Form 990, 990-EZ, or 990-N annually, even if their financial activity is minimal. Setting up reminders for filing deadlines, maintaining accurate records, and consulting with a tax professional can help organizations stay in compliance with IRS requirements. Timely filing and proper documentation are key to preventing future issues.
Are there different types of reinstatement available for tax-exempt organizations?
Yes, there are different types of reinstatement available, including streamlined retroactive reinstatement, retroactive reinstatement (for organizations that do not qualify for streamlined processing), and post-mark date reinstatement. The type of reinstatement depends on the organization’s specific circumstances, such as whether it has a history of compliance and the length of time the tax-exempt status has been revoked.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- The CP290 Notice informs tax-exempt organizations of compliance issues or revocation of tax-exempt status.
- Organizations that fail to file Form 990 for three consecutive years may face automatic revocation of their tax-exempt status.
- Respond promptly to minimize penalties and explore options for reinstatement.
- Consult with a tax professional to ensure your organization takes the correct steps to regain tax-exempt status.
Share this post:
Table of Contents