CP259E Notice: Return Not Filed – Exempt Organization

The CP259E Notice is sent to tax-exempt organizations to notify them of a missing return. While exempt organizations may not owe taxes, they are required to file annual information returns to retain their tax-exempt status. Failure to comply can result in penalties and potential loss of tax-exempt status.

Key elements of IRS CP259E Notice include:

1. Explanation of Filing Requirement for Exempt Organizations
   The CP259E specifies the return type required, such as Form 990, 990-EZ, or 990-N. Exempt organizations must file these forms annually to demonstrate compliance with IRS regulations.
2. Consequences of Not Filing
   Failing to respond to the CP259E can lead to:
   • Penalties for late filing: Penalties may apply for larger exempt organizations that miss filing deadlines.
   • Loss of tax-exempt status: Continued non-compliance may result in the organization losing its tax-exempt status, impacting its financial standing.
3. Instructions for Compliance
   The notice includes instructions for filing the appropriate return, as well as contact information for questions regarding filing requirements.
4. Importance to Tax Debt Resolution and Compliance
   While exempt organizations may not owe taxes, maintaining compliance by responding to the CP259E is essential to prevent penalties and ensure ongoing tax-exempt status.

The CP259E Notice emphasizes the importance of annual filing compliance for exempt organizations and provides a way to retain their tax-exempt standing without incurring penalties.