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:
- 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. - 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.
- Instructions for Compliance
The notice includes instructions for filing the appropriate return, as well as contact information for questions regarding filing requirements. - 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.