Are there penalties for missing the due date to resolve a received IRS notice?

Not all IRS notices carry penalties if a due date is missed. However, certain notices require timely action, and failing to respond or resolve them on time may result in penalties, interest, or additional obligations.

For example, if you receive a CP2100/CP2100A notice due to missing or incorrect TINs on reported Forms 1099, you are required to take corrective action within the specified timeframe (usually within 30 days). Failure to respond can result in backup withholding of 24% on payments made to the affected recipients.

Similarly, other notices may trigger late payment penalties, interest, or substitute for return filings if deadlines are ignored. It is important to carefully review each notice and act promptly to avoid such consequences.