IRS Penalty Notice CP15 – What It Means and How to Respond

You’ve Been Hit with a Penalty—Here’s What Happens Next

If you’ve received IRS Notice CP15, the IRS is informing you they’ve assessed a civil penalty against you—often for failure-to-file and failure-to-pay penalties or for reporting errors on your return.

This isn’t just a warning. The CP15 means the IRS has finalized the penalty, and you now owe that amount—unless you formally respond and challenge it.

In this post, we’ll break down what CP15 means, the types of penalties it covers, and how to fight back with challenging IRS penalties through abatement or a formal appeal.

What Is IRS Notice CP15?

Notice CP15 is the IRS’s way of notifying you that:

• A penalty has been assessed
• The amount due is final and added to your account
• You have 30 days to request abatement or appeal
• Interest will begin accruing on the penalty immediately

You may also receive a CP215 later if the penalty remains unpaid and interest continues to grow.

Common Reasons for Receiving CP15

• Failure to file Form 5471, 8938, or other foreign disclosure
• Late S-Corp elections or EIN notices
• Negligence or inaccuracy in return filing
• Failure to Pay or Failure to File penalties

Some CP15 penalties are automatic, while others are assessed after an IRS review or responding after an IRS audit assessment.

Step 1: Understand What You’re Being Penalized For

The CP15 notice will specify:

• The IRS code section (e.g., IRC §6679 or §6038)
• The penalty amount
• The reason the IRS believes you’re liable

This helps you determine whether to challenge the penalty based on incorrect facts, reasonable cause, or prior compliance history.

Related: understanding your IRS tax transcripts

Step 2: Decide How to Respond

If you agree with the penalty:

• Pay the amount immediately to stop further interest
• Set up an Installment Agreement if you can't pay in full

If you disagree or qualify for relief:

• File a penalty abatement request
• Submit a written explanation with supporting documents
• Use Form 843 (Claim for Refund and Request for Abatement) if appropriate

Related: challenging IRS penalties through abatement

Step 3: Build Your Reasonable Cause Argument

To qualify for abatement, show that the failure was:

• Caused by illness, disaster, death in the family
• Based on reliance on a tax professional
• Due to incomplete or lost documentation
• An honest mistake, followed by prompt correction

Related: seeking relief through an Offer in Compromise

Step 4: Submit Your Request to the Right IRS Unit

Penalty appeals are time-sensitive and must be submitted to the address or contact listed on your CP15 notice. In most cases:

• You have 30 days to respond in writing
• Include all backup documentation
• If no response, the IRS will treat the balance as final and collectible

Taxpayers in California should also know that California FTB penalty relief options may apply if the Franchise Tax Board has imposed similar penalties.

Step 5: Monitor Your IRS Account

Use a tax transcript to confirm:

• The penalty has been removed, reduced, or upheld
• Whether interest continues to accrue
• If your account was flagged for further compliance review

Related: understanding your IRS tax transcripts

We Help Orange County Taxpayers Challenge CP15 Penalties

At Boulanger CPA and Consulting PC, we:

• Analyze the CP15 notice and IRS code involved
• Prepare and submit strong penalty abatement packages
• Appeal denials and represent you in IRS correspondence
• Help you resolve related tax balances and collections

You don’t have to accept the penalty without a fight. To learn more about your options, explore more in Defend What’s Yours.

Call  (657) 218-5700 or schedule a strategy call at  www.orangecounty.cpa

You don’t have to accept the penalty without a fight.

📣 About the Author

Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.

With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.

Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.

Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.

📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.