IRS compliance alert
IRS CP120A Notice:
What it means and
how to respond
IRS Notice CP120A notifies your organization that its tax-exempt status has been automatically revoked. Learn why the IRS issued this notice, what it means, and what to do to restore your organization's
exempt status.
CP120A NOTICE
Understanding your
CP120A notice
What the notice is, who receives it, and
what happens if it's ignored.
What is CP120A Notice?
IRS Notice CP120A informs a tax-exempt organization that the IRS has automatically revoked its tax-exempt status.
Who gets it?
The IRS issues CP120A when a tax-exempt organization loses its exempt status after failing to meet its annual filing requirements for three consecutive years.
How to resolve?
Receiving CP120A means your organization's tax-exempt status has already been revoked. To restore it, determine which annual returns are missing and complete the IRS reinstatement process (including Form 1023 or 1024) as soon as possible.
If your organization believes the notice was issued in error, review your filing history and contact the IRS.
What happens if you ignore this notice?
Without reinstatement:
- Tax-exempt status remains revoked.
- Donations may no longer qualify for tax deductions.
-
The organization may become subject to federal
income tax. - Grant eligibility and state registrations may be affected.
-
Future compliance becomes
more difficult.
WHY FILE HERE
File 990 returns with Tax990. Avoid CP120A Notices.
Follow these three simple steps to resolve the CP120A notice.
Review Your Filing History
Identify any missed annual Form 990 series filings and determine which returns are required to
regain compliance.
Apply for Reinstatement
Submit the appropriate exemption application (such as Form 1023 or Form 1023-EZ, if applicable) to request reinstatement of your organization's tax-exempt status.
Complete Return & Transmit
Review your return using built-in error checks, make any necessary corrections, and securely e-file it with the IRS.
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FAQs
Frequently asked questions
Your organization received CP120A because the IRS automatically revoked your tax-exempt status after the required annual Form 990 series returns were not filed for three consecutive years.
No. Organizations may apply for reinstatement by following the applicable IRS procedures and submitting the required forms.
Yes. Most organizations can request reinstatement by filing the required application and becoming current with their
filing obligations.
Yes. Depending on the organization's circumstances and IRS requirements, previously required annual returns usually need to be completed as part of the reinstatement process.
The required forms vary by organization but generally include the missing Form 990 series returns and an application for reinstatement, such as Form 1023 or Form 1024.
Processing times vary depending on the IRS and the completeness of the submitted application.
Complete Your Filings Before It's Too Late
Filing 990 returns only takes a few minutes and helps your organization
stay compliant with IRS annual filing requirements.