If you receive a letter or notice from the IRS, it will explain the reason for the correspondence and provide instructions. It has recently redesigned certain notices, including CP Notice 120, You need to send us documentation of your tax-exempt status. The notice you receive covers a very specific issue about your account or tax return. Generally, the IRS will send a notice if it believes you owe additional tax, are due a larger refund, if there is a question about your tax return or a need for additional information.
You need to send us documentation of your tax-exempt status.
What you need to do
- Read your notice carefully. It will suggest additional steps for you to take, depending on your situation.
You may want to…
- Apply for tax-exempt status.
- Learn more
Answers to Common Questions
We want to apply for tax-exempt status. How much is the user fee?
User fees vary depending on a number of factors such as annual gross receipts.
How do I find out if my organization qualifies for tax-exempt status? I want to make sure we qualify before I fill out the forms and pay the user fee.
For information regarding the types of organizations that qualify for exemption from federal income tax, see Publication 557, Tax Exempt Status for Your Organization.
I already sent the IRS a Form 1023/1024, but I never got a confirmation. Can I just send you a copy of the form I already completed?
Please don’t send a copy of the form. You don’t need to respond if you’ve applied for tax-exempt status. To check on the status of your application, see Where Is My Exemption Application for more information.
If my organization doesn’t qualify for tax-exempt status, what type of tax return should we file?
An organization that does not qualify for tax exempt status is a taxable business. For information on business taxes, see Publication 583, Starting a Business and Keeping Records.
For more information on tax-exempt organizations, see additional FAQs.
Tips for next year
Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.
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|How to get helpCalling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).|
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.