Understanding your CP2000 notice Internal Revenue Service

Using an automated system, the Automated Underreporter (AUR) function compares the information reported by third parties to the information reported on your return to identify potential discrepancies. The CP2000 isn’t a bill, it’s a proposal to adjust your income, payments, credits, and/or deductions. The adjustment may result in additional tax owed or a refund of taxes paid. Common reasons for receiving a CP2000 notice include not reporting income from all sources, such as wages, interest, dividends, pensions, or self-employment income. The IRS receives information from third parties like employers and financial institutions, and if the amounts reported don’t match what’s on your tax return, it may trigger a CP2000 notice.

Payment Options for CP2000 Notices

You may pay the proposed amount or, if you return the Response form without payment, you can wait until the IRS adjusts your account and sends you a bill. Again, if you wait, interest will accrue until the amount is paid in full. Call volumes may be high, and it could take some time to reach a representative. We can generally accept your information over the phone for incorrectly reported information. If you don’t agree with all the proposed the changes, mark the appropriate box on the Response form and send it to us along with a signed statement explaining why you disagree.

How quickly do I need to respond to a CP2000?

If you choose to file an amended tax return, write “CP2000” on top of your return and attach it behind your completed response form. To ensure the information is sent to the proper area for processing, mail or fax the information to the address or fax number shown on the notice. Complete the form on page seven of your Letter CP 2000 to show whether you agree or disagree with the changes what is a cp2000 notice the IRS is proposing in the letter. If you disagree, explain why you disagree and provide any documents or information that supports your position. Make sure to submit all documents and information to the IRS by the due date to the address in the letter. If you fax the information, include your name and Social Security number or Taxpayer Identification Number on each page.

If you need more time

Use the enclosed envelope to send your Response form and any other necessary documents. If you’ve lost the envelope or it wasn’t enclosed, please send your response to the address listed on the first page of the Response form. You can complete and send Form 14039, Identity Theft Affidavit PDF, along with the completed response form. You can also go to our identity theft central webpage to find out more about what you can do. You can call the IRS on the number provided in the CP2000 notice to talk to an examiner.

CP2000 notices are computer-generated

• Again, if you wait, interest will accrue until the amount is paid in full.
• If you want to talk to an IRS agent about your CP2000, call the phone number listed in the top right-hand corner of the letter.
• The worst thing you can do when you receive a CP2000 is to ignore it, which will almost certainly result in additional penalties and interest.
• As an independent organization within the IRS, the Taxpayer Advocate Service helps taxpayers resolve problems and recommends changes that will prevent problems.
• If you think you’ll have trouble paying your taxes or the NFTL filing will cause economic hardship, it’s helpful to know what your options are to address your tax debt.

A CP2000 notice is automatically generated, so it isn’t always perfect. In fact, there are plenty of stories about taxpayers receiving incorrect CP2000 notices that don’t result in extra taxes. The IRS matches the information you reported on your tax return with information reported to IRS by third parties such as employers, banks, businesses, and others. Letter CP 2000 is sent to notify you that one or more items on your return don’t match what was reported to the IRS by third parties (e.g., employers or financial institutions). Respond within 30 days of the date of the notice or 60 days if you live outside the United States for a quick resolution.

• They offer TaxFacts reports that include IRS transcripts as well as any unpaid penalties or balances owed.
• It’s just a way to make things right and get back on track with the IRS.
• Common reasons for receiving a CP2000 notice include not reporting income from all sources, such as wages, interest, dividends, pensions, or self-employment income.
• If you qualify for our assistance, which is always free, we will do everything possible to help you.
• If you disagree with the proposed changes in the CP2000 and send the IRS information supporting your claim, the IRS should take between 30 to 90 days to send you its decision.
• If you’d like help finding support in dealing with the IRS, Bench can connect you to a certified enrolled agent who can handle the case on your behalf.
• If you agree with the tax changes specified in the CP2000 notice, sign and return the response form by mail before the due date specified by the IRS.

CP2000 response letter examples

If you suspect you might be the victim of identity theft, contact the IRS and your state tax agency. If you suspect there might be a problem with the information your employer or bank has sent the IRS, contact the business or person who reported the information to double-check. We help small businesses catch up on their bookkeeping ensuring all prior financial records are complete and accurate, putting you in a better position to respond to the IRS. If you’re not sure how to proceed, you might need a bit more time. Contact the IRS via the number printed on your notice for any deadline extensions or questions about the appeals process. Engaging with the IRS can be a daunting task for most of us, so it makes sense if this option feels a little overwhelming.

Typically, a CP2000 shows up when income reported from third-party sources (like your employer) does not match what you entered on your tax return. For example, if your Form W-2 indicates that you earned $25,000 in wages, but you reported $24,000 on your Form 1040, you’d likely receive a CP2000. It’s important to read the notice carefully because it provides instructions about what to do next.

• Thoroughly read the CP2000 notice to understand the discrepancies the IRS has identified between your tax return and the information they have received from third-party sources.
• We received information from a third party, such as employers or financial institutions, which doesn’t match the information you reported on your tax return.
• Sign the letter and send it back to the IRS, which will send you an updated tax bill.
• Once you respond to your CP2000, the IRS will send you a new, separate tax bill.
• You can also go to our identity theft central webpage to find out more about what you can do.
• Otherwise, you can get a copy of your return by completing and sending us a Form 4506, Request for Copy of Tax Return PDF.

Here’s a sample response letter to the CP2000 that you can download as a Word document. If you want to talk to an IRS agent about your CP2000, call the phone number listed in the top right-hand corner of the letter. Sign the letter and send it back to the IRS, which will send you an updated tax bill. It’s important to note that a CP2000 notice is no reason to panic.