For example, if the CP2000 relates to unreported stock sales, send a corrected Schedule D with the broker statements that show the taxpayer’s basis in the stocks sold. If there are additional expenses, credits, and/or income you may want to file an amended return. Sometimes you can just provide the information required and the IRS will accept it. When you get a CP2000 notice in the mail from the IRS, it means that the IRS thinks you left income off your tax return. But really, the IRS is just asking you to explain why there’s a mismatch between your return and IRS records.

If the proposed change means you owe some money, you have 30 days to pay before interest and penalties start up on top of any interest listed on the CP-2000. You can submit your payment at the same time as the response, but you don’t have to. If you decide to wait, the IRS will make an official adjustment to your tax account and send what is a cp2000 you a bill. If you pay by check, make sure to use the payment voucher that came with the notice. But, again, with their huge mail backlog, you’re much better off making your payment online. If you realize that the IRS got it right – which they often do, since it’s just a matching program – fill out and sign the response form.

Related tax terms

Sometimes, the IRS can question deductions or credits you took that don’t match information statements filed under your Social Security Number. Yes, CP2000 proposed assessments can be appealed if the taxpayer timely requests an appeal. However, most taxpayers and tax professionals fail to request an appeal with their response if the IRS disagrees.

As an independent organization within the IRS, the Taxpayer Advocate Service helps taxpayers resolve problems and recommends changes that will prevent problems. The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers and protects taxpayers’ rights. We can offer you help if your tax problem is causing a financial difficulty, you’ve tried and been unable to resolve your issue with the IRS, or you believe an IRS system, process, or procedure just isn’t working as it should. If you qualify for our assistance, which is always free, we will do everything possible to help you.

What Triggers a CP2000 Notice?

This compensation may impact how and where products appear on this site (including for example, the order in which they appear). Solvable does not include all card companies or all card offers available in the marketplace. The Personal Loan offers that appear on this site are from companies or affiliates from which solvable may receive compensation. Solvable does not include all Personal Loan companies or all types of offers available in the marketplace. If the IRS doesn’t agree with your explanation, you can file an appeal within 30 days of receiving the CP2000 Notice. Appeals conferences tend to include an informal phone call from an IRS representative, who may agree with your case.

Just remember not to file an amended tax return because the IRS will make any corrections. If you agree and would like to apply for an installment agreement plan by mail, send your signed response form and a completed Form 9465, Installment Agreement RequestPDF, and return it in the envelope provided. Call volumes may be high, and it could take some time to reach a representative. In the CP2000 Notice, the IRS will usually suggest changes that can affect your refund or taxes owed. If you disagree with these changes or any of the other information provided, you have 30 days from the date of the letter to respond. Read the letter thoroughly, so you don’t miss any of the details or instructions.

Evaluate your situation and decide on the right response.

The IRS can ask for additional time if they are backlogged with many CP2000 responses. Yes, but it’s a good idea to make sure you qualify before wasting time on it. Not everyone does, but if you do qualify this often is the best option to resolve your tax debt. You have the right to contest penalties and appeal an IRS decision about your CP2000 notice. Checking the box on the IRS form may not effectively protect your rights. You can complete and send to us Form 14039, Identity Theft AffidavitPDF.

• We can work with you to resolve your issues during the 90-day period, but this won’t extend the time you have to respond or to file a petition within the U.S.
• Work with a tax attorney to learn more about all the potential outcomes of resolving a CP2000 Notice.
• 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.
• It’s usually a CP2000 notice, also called an underreporter inquiry.
• But, if you have additional information you would like us to consider, you should contact us as soon as possible.

We received information from a third party, such as employers or financial institutions, that doesn’t match the information you reported on your return. If you do not respond by the date on the notice, the IRS will send you another form, the Statutory Notice of Deficiency. This notice also explains a change in the amount of tax you owe, and how you can disagree by taking the case to Tax Court.