IRS CP215
Penalty for Late Business Return
Your corporation or organization filed late — an IRS penalty has been assessed.
Deadline
60 days to respond or request abatement
Request abatement within 60 days of the notice date. First-time abatement is available for eligible businesses and often eliminates the penalty entirely.
Respond promptly to protect your options and avoid escalation.
What IRS CP215 Means
CP215 is issued when a business return — typically a C-corporation (Form 1120) or tax-exempt organization — is filed late or without all required information. The penalty is typically 5% of the unpaid tax per month, up to 25%, under IRC §6651.
Unlike the per-partner calculation for CP162 (partnerships and S-corps), the CP215 penalty is based on the corporation's actual unpaid tax balance at the filing deadline. If the tax was fully paid by the due date, the failure-to-file penalty still applies but may be reduced.
Many CP215 penalties qualify for first-time abatement (FTA), especially for businesses with a clean compliance history. Additionally, if the late filing was due to circumstances beyond your control — disaster, illness, professional advice — reasonable cause abatement may also apply.
What the IRS Can Do If You Don't Respond
- Assess failure-to-file penalties of 5% per month, up to 25% of unpaid tax
- Accrue interest on both the tax and penalty balances
- Escalate to collection notices if the penalty remains unpaid
- Coordinate with state tax agencies on compliance issues
What You Should Do Right Now
- 1
Verify the filing date of your return and compare to the due date (including any extension)
- 2
If you filed a timely extension (Form 7004), the penalty may not apply — respond with proof
- 3
Assess first-time abatement eligibility — three-year clean penalty history qualifies
- 4
If FTA does not apply, document your reasonable cause for late filing
- 5
Submit a written abatement request promptly — ideally before paying the penalty
Resolution Options Available to You
Frequently Asked Questions About IRS CP215
How much is the CP215 penalty?
The failure-to-file penalty is 5% of the unpaid tax per month (or part of a month), up to 25% maximum. If the return is more than 60 days late, the minimum penalty is the lesser of $485 or 100% of the unpaid tax (2024 amounts).
Can I get CP215 abated if I paid the tax on time?
The failure-to-file penalty is separate from the failure-to-pay penalty. Even if you paid the tax on time (by extension), a late return still triggers the failure-to-file penalty — but it may be reduced since the 'unpaid tax' used in the calculation is $0.
What is the deadline to file Form 1120?
C-corporation returns are due April 15 for calendar-year filers. A Form 7004 extension gives an additional 6 months (to October 15). The extension must be filed by the original due date.
Does the IRS automatically grant first-time abatement?
No — FTA must be requested. You can request it by phone or in writing. A written request creates a paper trail and gives you a basis for appeal if the first request is denied.
Professional References
IRC: IRC §6651 — Failure to File or Pay; IRC §6651(a)(1) — Failure to File Penalty
IRM: IRM 20.1.2 — Failure to File/Failure to Pay Penalties
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