IRS NOTICE REFERENCE
Understanding your CP120B notice
You are no longer recognized as a tax-exempt subordinate in a group exemption letter.
General information only. Not legal or tax advice.
Notice details
- Notice code
- CP120B
- Category
- Filing and non-filer
- Severity tier
- Tier 2 — Action or response expected. The IRS has taken or proposed an action and expects a response or payment.
- Governing law
- §6651; §6012 (Internal Revenue Code sections)
- Source
- IRS.gov — Understanding Your IRS Notice
What this notice is
You are no longer recognized as a tax-exempt subordinate in a group exemption letter.
Source: IRS.gov. Reproduced for reference. General information — not legal or tax advice.
What the IRS says to do
If you believe you are a 501(c)(3) organization, you must submit Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code , or, if eligible, Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code , and pay the required user fee to be tax exempt. If you are an organization other than a 501(c)(3) or 501(c)(9) organization, you should continue to meet your annual filing requirements.
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 5.1.11 — 5.1.11 Delinquent Return Investigations
- IRM 5.18.1 — 5.18.1 Automated Substitute for Return (ASFR) Program
- IRM 4.12.1 — 4.12.1 Nonfiled Returns
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-cp120b-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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