IRS compliance alert
IRS CP259D Notice:
What it means and
how to respond
IRS CP259D Notice is an IRS reminder that your organization may have missed its required Form 990-T filing for unrelated business income. Learn what the notice means, why you received it, and what to do next to avoid additional tax, penalties, and interest.
CP259D NOTICE
Understanding your CP259D notice
What the notice is, who receives it, and what happens if it's ignored.
What is CP259D Notice?
This is an official IRS notice reminding tax-exempt organizations that they haven't filed a required Form 990-T
to report and pay tax on unrelated business income.
Who gets it?
The IRS sends CP259D to organizations exempt under section 501(a) or 529(a) whose records show $1,000 or more of gross income from an unrelated trade or business for the tax period, but who haven't filed the corresponding Form 990-T. This filing requirement applies in addition to — not instead of — your annual Form 990, 990-EZ, or 990-PF.
How to resolve it?
A direct response is not required in every case, but the CP259D Notice asks organizations to confirm their filing status:
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If you have not already filed - File Form 990-T immediately, along with payment for any unrelated business income tax owed.
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If you have already filed - Disregard the notice if you filed within the last four weeks under the same name and EIN. Otherwise, complete the response form and mail it with a signed, dated copy of your return.
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If you don't believe you're required to file - Complete the response form (for example, if your unrelated business income was under $1,000 for the year) and mail or
fax it back.
What happens if you ignore the notice?
If unrelated business income tax is owed and a 990-T return isn't filed, penalties and interest accrue on the unpaid tax in addition to the initial late-filing penalty.
WHY FILE HERE
File Form 990-T with Tax990. Resolve
CP259D Your Notice.
Follow these three simple steps to complete your Form 990-T filing
and resolve your CP259D notice.
Add organization details
Simply enter your organization's name or EIN, and we'll retrieve the details from the IRS records.
Prepare your form
Enter your income, deductions, and all the required information on the form directly.
Review & audit check
Built-in validations scan your return for errors before submission.
E-file directly with the IRS
Submit securely and receive confirmation once accepted.
Protection & Commitment
More Than Form 990-T E-Filing.
Support That Lasts
Beyond Acceptance.
So your mission stays the focus.
The Tax990 Commitment
Form first click to filing, and beyond,
we've got you back
You can trust Tax990 to do everything in our power to ensure your 990-T forms are filed correctly.
-
Complimentary extension requests if you need more time
-
No-cost amendments in case anything needs to
be updated -
Free retransmission if the IRS rejects your return
-
Money-back guarantee so you can file with confidence
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FAQs
Frequently asked questions
IRS records indicate your organization had $1,000 or more of gross unrelated business income for the tax period and has not yet filed the required Form 990-T.
Only in certain cases. If you've already filed — more than four weeks ago or under a different name/EIN — or if you believe you're not required to file. In those cases, complete and return the response form included with the notice.
Interest and penalties will continue to accrue on any unpaid unrelated business income tax until the return is filed and the balance is paid.
Complete the response form included with the notice to let the IRS know you weren't required to file Form 990-T for that
tax period.
Yes. File as soon as possible to limit further penalty and interest accrual on any unpaid tax.
Complete Your Form 990-T Before It's Too Late
Filing Form 990-T with Tax990 helps your organization report unrelated business income
and stay compliant with IRS requirements.
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