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IRS CP152: What it Means for Your Tax-Exempt Bonds

Silas Bamigbola avatar image
Last updated 10/30/2024 by
Silas Bamigbola
Fact checked by
Ante Mazalin
Summary:
The IRS CP152 notice is sent to taxpayers to confirm the receipt of Form 8038 for tax-exempt bonds. This is purely an acknowledgment notice, and no further action is required by the taxpayer. However, it’s important to keep a copy of this notice for your records. The notice is part of the IRS’s protocol to ensure transparency and accuracy in processing tax-exempt bond forms.
Receiving a notice from the IRS can often be alarming, but not every letter they send demands immediate action. If you’ve recently filed Form 8038 for tax-exempt bonds, you may receive a CP152 notice from the IRS. This specific notice is simply an acknowledgment that the IRS has received your form, and there’s no need to worry about any errors or issues.
In this article, we’ll explain in detail what the IRS CP152 notice is, why it’s sent, and what steps you should take after receiving it. We’ll also explore potential reasons for receiving the notice, what it means for your tax records, and how to ensure everything is in compliance.
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What is IRS CP152 notice?

The CP152 notice is issued by the IRS to confirm that they have received your Form 8038, which is used for tax-exempt bonds. The IRS sends this notice to provide transparency, ensuring you know that your form has been successfully filed. Unlike other IRS notices, CP152 does not signal a problem or an audit.
Form 8038 is required for issuers of tax-exempt bonds, including government entities, non-profit organizations, and other eligible entities. The form reports information about the issuance of the bonds, including details such as the amount, purpose, and type of bond. The IRS uses the CP152 notice as a formal acknowledgment of receiving this form, giving the taxpayer peace of mind that their submission was properly filed.

Pro Tip

Set up IRS account alerts online to get real-time notifications on any changes to your tax return or account. This helps you stay updated on adjustments and due dates.

Why did I receive the CP152 notice?

You received the CP152 notice because you recently filed Form 8038, and the IRS is notifying you that they’ve successfully received it. This form is crucial for reporting tax-exempt bonds, and the IRS issues the CP152 to confirm that everything is in order.
Some common reasons for receiving the CP152 notice include:
  • Filing a Form 8038 series return related to the issuance of tax-exempt bonds.
  • Filing the form to comply with IRS reporting requirements for tax-exempt bonds.
  • Being part of a non-profit organization, governmental agency, or other issuer of tax-exempt bonds.
It’s important to note that receiving this notice does not indicate any issue or problem with your filing. It’s purely for acknowledgment purposes.

Pro Tip

Keep digital copies of all IRS notices, including CP152, to ensure easy access during audits or tax inquiries. Cloud storage can help with organization and backup.

What should you do when you receive IRS CP152 notice?

If you receive the CP152 notice, the good news is that you do not need to take any action. The notice is simply for your records and confirms that the IRS has received your Form 8038. However, there are a few steps you should follow to ensure everything is properly documented.

Steps to take after receiving CP152 notice

  • Read the notice thoroughly and ensure that all the information matches your records.
  • Keep the notice in your tax records, as it may be useful for future reference or audits.
  • Ensure that you have a copy of the Form 8038 that you filed for your records.
  • If you notice any discrepancies, reach out to the IRS for clarification or corrections.
It’s important to keep this notice for your personal records as proof of your submission. While no further action is needed, you should always have these types of notices on hand in case of any future tax inquiries or audits.

What is Form 8038 and why is it important?

Form 8038 is the IRS form used by governmental bodies, non-profit organizations, and other entities to report the issuance of tax-exempt bonds. These bonds allow the issuer to borrow money at a reduced interest rate due to the tax-exempt status. The IRS requires this form to ensure that all tax-exempt bonds are properly reported and compliant with federal tax law.

Types of bonds reported on Form 8038

There are various types of tax-exempt bonds that must be reported using the Form 8038 series. These include:
  • Private activity bonds
  • Government bonds
  • Qualified 501(c)(3) bonds
  • Qualified school construction bonds
By reporting the issuance of these bonds, the IRS can track compliance with tax laws governing tax-exempt bond issuers.

How CP152 ensures proper documentation

The IRS CP152 notice plays an important role in ensuring that all tax-exempt bond filings are properly documented. Once you receive this notice, you can rest assured that your submission was received by the IRS and is now part of your official tax record.

Pro Tip

Consult a tax professional if you have complex bond issuances or notice any discrepancies in your IRS forms. This can prevent costly mistakes and ensure compliance.

What to do if there are discrepancies in the CP152 notice?

Although the CP152 notice is typically just an acknowledgment, errors can happen. If you notice discrepancies in the notice or have concerns, it’s important to address them promptly.

Steps to take in case of discrepancies

  • Compare the notice with your copy of the Form 8038. Check if the details match, including the bond amount and issuance date.
  • Contact the IRS immediately if there are any mismatches or issues with the information on the notice.
  • Consider consulting with a tax professional, especially if you are unfamiliar with tax-exempt bond reporting.
Addressing any discrepancies quickly will help prevent potential problems down the line, such as incorrect filings or IRS inquiries.

What are the next steps after receiving CP152?

While no further action is required after receiving the CP152 notice, you can take some proactive steps to ensure all your documentation is in order.

Maintain proper records

Keep both the CP152 notice and your filed Form 8038 in your tax records. It’s crucial to have these documents easily accessible for future reference, especially if you are audited or need to provide proof of your filing.

What are the potential consequences of not keeping CP152?

While the CP152 notice does not require further action from you, failing to keep it as part of your records could lead to future challenges. Here’s why maintaining this notice is essential:

Audit readiness

In the event of an audit, having a copy of the CP152 notice readily available can be helpful. It serves as proof that you complied with IRS reporting requirements for tax-exempt bonds and that your Form 8038 was received and processed. Without this notice, you may have a harder time proving that your submission was complete and on time.

Record-keeping requirements

Taxpayers, especially those dealing with tax-exempt bonds, are required to maintain accurate and thorough records. The CP152 notice is an important part of this documentation. It not only acknowledges that the IRS received your Form 8038, but it also provides a timeline that could be important for future filings or audits.

How to request a copy of CP152 if lost

If you have misplaced or lost the CP152 notice, don’t worry; it is possible to request a copy from the IRS. Here’s how you can do it:

Steps to request a copy of CP152

  • Contact the IRS directly via their customer service number. You can find the contact information on the IRS website or on other IRS correspondence you may have received.
  • Be prepared to provide your personal identification information, including your Taxpayer Identification Number (TIN) and details related to the tax-exempt bond filing.
  • Request a copy of the CP152 notice by specifying that it was the acknowledgment notice for Form 8038.
  • Once the IRS verifies your identity, they will mail a copy of the notice to your address on file. Ensure that your address is up to date to avoid any delivery issues.

Pro Tip

Review all tax filings thoroughly before submission to avoid errors that could trigger unnecessary IRS notices or penalties.

Common issues with tax-exempt bond filings

Although the CP152 notice confirms that the IRS received your Form 8038, there can still be issues with tax-exempt bond filings that require attention. Some of the common issues include:

Late filing of Form 8038

One of the most common issues arises from late filing. The IRS requires Form 8038 to be filed by specific deadlines, and missing those deadlines can lead to penalties or loss of tax-exempt status for the bonds in question. Even if you receive the CP152 notice, if the form was filed late, the IRS may still impose penalties.

Incomplete or inaccurate information on Form 8038

Filing Form 8038 with incomplete or inaccurate information can also cause problems down the road. Inaccurate reporting could trigger IRS inquiries or penalties. It is important to carefully review the form before submitting it to avoid these issues.

Failure to meet continuing disclosure requirements

Tax-exempt bonds often come with continuing disclosure obligations, and failure to meet these requirements can result in penalties or loss of the tax-exempt status. Even after receiving the CP152 notice, issuers must ensure they comply with all ongoing obligations associated with the bond issuance.

Consult a tax professional if needed

If you’re unsure about the filing process or have questions regarding your tax-exempt bond issuance, consider consulting with a tax professional. They can help you understand the filing process, ensure compliance, and provide guidance on any discrepancies.
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Frequently asked questions

What is the purpose of IRS Form 8038?

Form 8038 is used by entities that issue tax-exempt bonds, such as state and local governments, nonprofit organizations, and other eligible issuers. It reports the issuance of tax-exempt bonds to the IRS, allowing them to ensure compliance with federal tax laws. Filing this form is crucial for maintaining the tax-exempt status of the bonds.

Does the CP152 notice require any immediate action?

No, the CP152 notice does not require any immediate action from you. It is simply an acknowledgment from the IRS that they have received your Form 8038. However, it’s essential to keep the notice for your records as proof of submission in case of future audits or inquiries.

What should I do if I filed Form 8038 late?

If you filed Form 8038 late, you may face penalties, and the tax-exempt status of the bonds could be affected. In such cases, it is recommended to contact the IRS as soon as possible to resolve the issue. Consulting with a tax professional may also help in understanding any potential consequences and how to mitigate them.

Can I file Form 8038 electronically?

As of now, Form 8038 and its related series are generally filed by mail. However, the IRS is moving towards increased electronic filing for more forms. It’s a good idea to regularly check the IRS website for updates on whether electronic filing becomes available for this form.

What happens if I lose the CP152 notice?

If you lose the CP152 notice, you can request a replacement from the IRS by contacting their customer service. Be prepared to provide your taxpayer identification information and details about the tax-exempt bond issuance. The IRS will mail a replacement copy to the address they have on file for you.
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.
IRS Letter or Notice Number
Notice Description
CP01The IRS verified your claim of identity theft and will monitor your account.
CP01HThe IRS received a tax return with a social security number that belongs to a dead person.
CP02HMoney is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma.
CP03CYou received the First-Time Homebuyer Credit for a house you purchased.
CP04You 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.
CP08You may be entitled to additional money due to the Additional Child Tax Credit.
CP10Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed.
CP10AYour 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.
CP11You owe money because the IRS amended your return due to a miscalculation.
CP11AYour 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.
CP11MYour 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.
CP12You are due a bigger refund because the IRS corrected one or more mistakes on your tax return.
CP12AThe IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return.
CP12E or CP12FThe IRS corrected a miscalculation on your return.
CP12MThe IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return.
CP12RThe IRS made changes to the computation of the Rebate Recovery Credit on your return.
CP13The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero.
CP13AThe 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.
CP13MThe 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.
CP13RThe 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.
CP14You owe money on unpaid taxes.
CP16The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts.
CP21AYou owe money due to the changes you requested that the IRS make on your tax returns.
CP21BYou 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.
CP21CThe 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.
CP21EAs a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes.
CP21IThe IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes.
CP22AThe IRS made the changes you requested, and you owe money as a result.
CP22EAs a result of your recent audit, the IRS changed your tax return, and you now owe money.
CP22IThe IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes.
CP23The 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.
CP24The 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.
CP24EThe 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.
CP25The 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.
CP31You need to update your address because your refund check was returned to the IRS.
CP45The IRS was unable to apply your overpayment to your estimated tax as you requested.
CP49The IRS used all or part of your refund to pay a tax debt.
CP53Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit.
CP57The bank declined your payment, so the IRS was unable to draft funds from your bank account.
CP71A reminder of the amount you owe in tax, penalty, and interest.
CP71AA reminder of the amount you owe in tax, penalty, and interest.
CP71CA reminder of the amount you owe in tax, penalty, and interest.
CP71DA reminder of the amount you owe in tax, penalty, and interest.
CP88The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax.
CP90The 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.
CP91The IRS will levy up to 15% of your social security benefits for unpaid taxes.
CP120The IRS needs documentation of your tax-exempt status.
CP120AYour organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years.
CP130You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed.
CP152The IRS received your return.
CP153The IRS will send your refund by mail because your direct deposit did not go through.
CP161You have an unpaid balance due to the IRS.
CP166Your monthly payment to the IRS did not go through due to insufficient funds in your bank account.
CP178You may no longer owe excise tax because your tax return filing requirements changed.
CP231You need to update your address because your refund was returned to the IRS.
CP259You did not file the business tax return identified in the notice.
CP259AYou 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).
CP259BThe 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.
CP259CThe 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.
CP259DYou must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return.
CP259EYou 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.
CP259FThe IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return.
CP259GThe IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations.
CP259HAs 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.
CP276AYou submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time.
CP276BThe IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time.
CP297The 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.
CP297AThe IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing.
CP298The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes.
CP501You have a balance due on one of your tax accounts.
CP503You have an unpaid balance on one of your accounts, and the IRS has not heard from you.
CP504You 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.
CP504BYou 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.
CP521A reminder that you have an installment agreement payment due.
CP523You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets.
CP601Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas.
CP603No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas.
CP604Usted 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.
CP604BUsted 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.
CP621Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente.
CP623Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo.
CP711Nosotros 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.
CP721Hicimos 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.
CP722Hicimos 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.
CP771Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP772Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP773Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP774Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP959Usted no radicó su planilla de contribución de negocios identificada en este aviso.
CP2000The 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.
CP3219AThe 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.
CP3219NThe 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 0012CThe IRS needs additional information to process your tax return.
Letter 0484CThe IRS wants a completed
Letter 0525Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed.
Letter 531IRS 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 0549CYour tax bill was paid.
Letter 0681CThe IRS accepted your payment proposal. However, this is not a formal Installment Agreement.
Letter 0757CYou did not adhere to the terms of your Installment Agreement.
Letter LT 11The IRS plans to seize your property or rights to property.
Letter 1058The 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 1961CYour application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify.
Letter 1962CYour 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 2257CThe IRS is providing the payoff amount that you requested.
Letter 226-JAn IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP).
Letter 2271CA 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 2272CAn IRS letter explaining why your request to pay the balance due in installments was declined.
Letter 2273CA 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 2318CA response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged.
Letter 2357CThe IRS is admitting that it did not send you the balance due notices that it should have.
Letter 2603CThe IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property.
Letter 2604CThe 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 2761CThe 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 2789CAn 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 2840CConfirms 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 3030CProvides an explanation of the tax, penalty, and interest still due on your account.
Letter 3127CA 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 3174A reminder of taxes due after the IRS has sent a Notice of Intent to Levy.
Letter 3217CThe 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 3500The IRS has received your documents, and it needs additional time to review them.
Letter 3572Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment.
Letter 4883CThe 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 47The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address.
Letter LP 59The IRS has not received a response to the notice of levy it previously sent.
Audit Letter 2205The 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 915You recently underwent an audit, and the IRS informs you that you now owe taxes.

Key takeaways

  • The CP152 notice is issued as a confirmation that the IRS has received your Form 8038 for tax-exempt bonds.
  • No further action is required after receiving the CP152 notice, but it should be kept for your records.
  • If there are any discrepancies in the notice, contact the IRS or consult a tax professional for assistance.
  • Form 8038 is essential for reporting tax-exempt bond issuance, and the CP152 ensures this process is well-documented.

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