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CP282 notice: what it means and what to do

Got an IRS CP282 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.

What the IRS says this notice is about

You received this notice because you indicated on your Form 1065, U.S. Return of Partnership Income, or Form1065-B, U.S. Return of Income for Electing Large Partnerships, that you have foreign partners.

Generally, when a foreign person engages in a trade or business in the United States, all income from sources in the United States connected with the conduct of that trade or business is considered to be Effectively Connected Taxable Income (ECTI) . A partnership (foreign or domestic) that has income effectively connected with a U.S. trade or business (or income treated as effectively connected) must pay a withholding tax on the ECTI that it allocates to its foreign partners (Section 1446 of the Internal Revenue Code). The partnership, or a withholding agent for the partnership, must pay the withholding tax. A partnership that must pay the withholding tax but fails to do so may be liable for the payment of the tax plus any penalties and interest.

What you need to do

• Complete the appropriate forms. If you are not a publicly traded partnership, use: Form 8804, Annual Return for Partnership Withholding Tax (Section 1446) PDF
• Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax PDF
• Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446) PDF
• If you are a publicly traded partnership, use: Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons PDF
• Form 1042-T, Annual Summary and Transmittal of Forms 1042-S PDF
• Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding PDF
• Mail your forms to: Internal Revenue Service P.O. Box 409101 Ogden, UT 84409

If you determine you're not liable for withholding:

• Write ”not liable” on the notice
• Don’t write that you have no taxable income
• Send the notice to the address at the top of the notice

If you already filed the appropriate forms:

• Write on the notice the names of the forms you already filed
• Send the notice to the address at the top of the notice

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

You may be able to remove the penalties

If you had no penalties in the 3 tax years before, filed all required returns, and paid or arranged to pay the tax, the IRS First-Time Abatement policy can remove failure-to-file and failure-to-pay penalties. You can ask in writing or by phone.

Cannot pay it all now? Ask for a payment plan

You can apply for a payment plan on irs.gov. Interest keeps running until the balance is paid, so pay what you can now.

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

• Obtain the forms and instructions you need from our website
• Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities

Related notices

• CP183 notice
• CP211C notice
• CP232B notice
• CP232C notice
• CP232D notice
• CP235 notice
• CP276A notice
• CP276B notice

Source

1. IRS: Understanding Your CP282 Notice