The IRS sent CP6042 asking about our entity information. Is this just a questionnaire, or can it delay refunds and filings?
We received a CP6042 notice tied to our EIN setup, asking for more information about the entity and who is really affiliated with it. Some people on the team want to treat it like a low-priority questionnaire because no tax assessment was proposed. I am less relaxed, especially because we are expecting an overpayment to apply to next year's estimated tax.
I need to know how operationally serious this notice is. If the IRS is explicitly warning that failure to respond or update the entity information can delay return processing, refunds, or estimated-tax credits, we should treat the notice like a live deadline.
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