Glossary

CP120 Notice

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The CP120 notice is sent by the IRS to tax-exempt organizations to inform them that their tax-exempt status has been revoked due to non-filing of required annual returns or notices. Organizations that fail to file the necessary documentation for three consecutive years automatically lose their tax-exempt status.

Key points about CP120:

The notice explains that the organization’s tax-exempt status has been revoked, meaning it is now subject to income tax.
It provides instructions on how to reinstate tax-exempt status by submitting the appropriate forms and paying the required fee.
The organization must file Form 1023 or Form 1024 to apply for reinstatement.

Organizations receiving CP120 should act quickly to restore their tax-exempt status and avoid being taxed as a for-profit entity.

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