- What it means
- A penalty was assessed that is not part of a return: an information return penalty, a frivolous filing penalty, or another civil penalty, with the code section cited.
- Respond within
- 30 days from the date on the notice
- What to send
- Payment, or a written request for abatement with reasonable cause.
- Write it
- Reasonable cause statement
- When to get help
- Trust fund recovery penalties (CP15B) and accuracy or fraud penalties need representation.
What the letter says
The notice names the penalty, the code section, and the amount. Read the section: 6721 and 6722 are information return penalties (late or incorrect 1099s, W-2s), 6702 is the frivolous return penalty, 6672 is the trust fund recovery penalty.
What to do
Information return penalties are abatable for reasonable cause and, for first-time failures, the IRS applies a reduced schedule if you corrected within 30 days or by August 1. Write with the facts and dates. Trust fund penalties are personal and serious; get help.
Deadline
Pay or respond by the date on the notice. Interest accrues on unpaid penalties.
What to gather
- The notice with the code section
- The filings the penalty relates to and proof of when they were filed
- Dated documents for any reasonable cause claim
Write back
The Reasonable cause statement tool builds the response in the order the IRS reads it. Fill it in, review it, print it, and send it with copies of the documents above and the notice stub on top.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.