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CP120B notice: what it means and what to do
Got an IRS CP120B notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP120B notice freeWhat the IRS says this notice is about
You are no longer recognized as a tax-exempt subordinate in a group exemption letter.
What you need to do
- If you believe you are a 501(c)(3) organization, you must submit Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code , or, if eligible, Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code , and pay the required user fee to be tax exempt.
- If you are an organization other than a 501(c)(3) or 501(c)(9) organization, you should continue to meet your annual filing requirements.
Your deadline
Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.
What to check before you answer
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
You may want to
Contact us if your address has changed.
Common questions
Our organization is other than a 501(c)(3) or 501(c)(9) and we would like a formal determination letter. What should we do?
Submit Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code , if you would like to be recognized as a 501(c)(4) organization.
Submit Form 1024, Application for Recognition of Exemption Under Section 501(a) , if you would like to be recognized under another subsection of 501(c).
Include Form 8718, User Fee Exempt Organization Determination Letter Request , and pay the applicable user fee with your application.
Tax publications you may find useful
Publication 557, Tax-Exempt Status for Your Organization PDF
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