IRS NOTICE REFERENCE
Understanding Your CP120 Notice
You filed a tax-exempt return, but our records don't show you are tax-exempt.
General information only. Not legal or tax advice.
Notice details
- Notice code
- CP120
- Category
- Examination and audit
- Severity tier
- Tier 2 — Action or response expected. The IRS has taken or proposed an action and expects a response or payment.
- Governing law
- §7602 (Internal Revenue Code section)
- Source
- IRS.gov — Understanding Your IRS Notice
What this notice is
You filed a tax-exempt return, but our records don't show you are tax-exempt.
Source: IRS.gov. Reproduced for reference. General information — not legal or tax advice.
What the IRS says to do
Send us a copy of the letter we provided you or your parent organization recognizing your tax-exempt status by: Faxing your documents to the fax number in the notice using either a fax machine or an online fax service. Protect yourself when sending digital data by understanding the fax service’s privacy and security policies., or Mailing your documents to the address shown on the notice. Faxing your documents to the fax number in the notice using either a fax machine or an online fax service. Protect yourself when sending digital data by understanding the fax service’s privacy and security policies., or Mailing your documents to the address shown on the notice. Apply for tax exempt status by completing and submitting the appropriate application and fee. Mail the application and appropriate fee to the address on your notice.
This is the IRS’s own guidance reproduced from the IRS notice page. It describes the IRS’s process — it is not legal or tax advice from TaxRiskOS.
Governing IRS procedure (Internal Revenue Manual)
The IRS’s own internal procedures for handling this notice type are documented in the Internal Revenue Manual:
- IRM 4.10.1 — 4.10.1 Overview of Examiner Responsibilities
- IRM 4.10.3 — 4.10.3 Examination Techniques
- IRM 4.13.1 — 4.13.1 Examination Audit Reconsideration Process
Reference to published IRS procedure. General information — not legal or tax advice.
Official IRS reference
Read the official notice page on IRS.gov: https://www.irs.gov/individuals/understanding-your-cp120-notice
Related tools
TaxRiskOS is workflow software for practitioners — it captures the notice, computes the deadline, surfaces the escalation tier, and builds a document checklist. It documents process; it does not give advice or draft responses.
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