IRS Letter CP2000
Why are you receiving this letter?
You received IRS letter CP2000 because the IRS compared your return to information they have on file: W-2s, 1098s, and 1099s, and they believe you didn’t report all income, or you incorrectly reported deductions and/or tax credits. The IRS is proposing a change to your return based on the information available. As a result of the proposed change, you will owe additional taxes. This is considered a Correspondence Audit.
- Sign and return the mailed form. The IRS will process your response and send a tax bill.
- You can mail a payment with your response.
- You can pay in full online at www.irs.gov/payment.
- The IRS is proposing to charge you less than $10,000 of additional taxes.
- You do not agree with the proposed changes.
- You are unable to pay back the taxes in full.
- You would like to discuss this with someone not working for the IRS to understand what is going on and the options you have.
- The IRS is proposing to charge you greater than $10,000 of additional taxes.
- You are unable to pay back the taxes in full.
- You would like to negotiate down the tax balances.
What you should do?
Read notice CP2000 carefully. The notice will explain the tax year is in question and the reporting differences between your tax return and the information reported to the IRS. Review your records carefully to see if your tax return is correct or if the IRS is correct.
If you agree, sign the letter as agreed. The IRS will then process the letter and send you a tax bill.
If you disagree, contact the IRS at the phone number on the top right of the Notice. Be prepared to provide documentation supporting your position. Talk to a tax professional if the IRS still doesn’t agree with your position.
What can you expect next?
If you agree with the changes and sign the notice, the IRS will send you a bill.
If you provided information to the IRS that supports your decision, the IRS will take about 30 to 90 days to review the documentation provided. The IRS will then provide you with correspondence detailing their decision.
If you still don’t agree or don’t respond to the notice, the IRS will send a Notice of Deficiency. You do have rights to further contest the Notice in U.S. Tax Court.