Skip to content

General education, not advice for your situation.

Carry Forward Learning Start here Intern0 XP

IRS notice decoder · Business accounts and employer notices

CP295: a Form 5500 penalty still unpaid, with no reply received

A CP295 follows a penalty for a late or incomplete Form 5500 when the IRS hasn't heard back. Pay, or send reasons and missing information.

By the Carry Forward Learning team Reviewed by Hunter Nottingham, JD, CPA

No dated figures Checked Review by

CheckedOct 19, 2026

What a CP295 means

A CP295 says the IRS earlier charged a penalty for a late or incomplete Form 5500 (the annual return or report of an employee benefit plan), and it hasn't received a reply. source 1

So this is the second ask. If you have a reason the return was late, this is still the time to send it.

The date that counts

Pay by the due date printed on the notice; the IRS says more penalties and interest accrue after it. source 1

Why people get one

  • A Form 5500 penalty was charged and no payment or reply reached the IRS. source 1

First steps

  1. Find the earlier penalty notice and check the plan, plan year and amount. source 1
  2. If the return was incomplete, send the missing information. source 1
  3. To ask for removal, send a signed statement or signed Form 843 with any missing information to the address on the notice. source 1
  4. If you can't pay in full, pay what you can and request a payment plan. source 1

What not to do

  • Don't wait for a third notice.
  • Don't pay through a link or phone number in an unexpected email or text. Use irs.gov, typed in yourself.
  • Related CP283 The penalty notice for a late or incomplete Form 5500-EZ.

Questions

Can the penalty still be removed?

The IRS says you can send a signed statement with an acceptable reason the return was late or incomplete, along with any missing information. source 1

What if I don't pay by the due date?

More penalties and interest accrue, the IRS says. source 1

Sources

  1. IRS, Understanding your CP295 notice (external site) checked Oct 19, 2026

Every rule on this page comes from the IRS page in the list, read on the date shown. Your notice itself is the final word on its own dates and amounts.