How to Understand & Respond To An IRS CP2000 Notice 2022
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. The income information the IRS has on file for you, as provided by your employer, your bank, and any other third parties (via W-2s, 1098s, 1099s, and so on). If you don’t know where to start, H&R Block’s Tax Notice Services will analyze your issue for free and provide upfront pricing before getting started.
This notice or letter may include additional topics that have not yet been covered here. 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. Engaging with the IRS can be a daunting task for most of us, so it makes sense if this option feels a little overwhelming.
What to Do if You Receive a CP2000 Notice?
If you suspect you might be the victim of identity theft, contact the IRS and your state tax agency. Yes, you’ll be on the hook for any additional interest you accrue in the process. 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. It’s important to note that a CP2000 notice is no reason to panic.
Complete the form on page seven of your Letter CP 2000 to show whether you agree or disagree with the changes 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. The IRS receives information from third parties, such as employers and financial institutions.
What do I do if I disagree with the proposed changes?
Start your search below to find a tax professional to help with your tax problem. The CP2000 Notice is a document the IRS sends to let you know they found discrepancies in your tax return. The notice gives you a chance to correct and clarify the information. It will outline the specific issues with your return and provide the next steps to take for your tax return to be amended or the issue resolved quickly. It can be unsettling to receive any IRS notification but try not to worry when you receive a CP2000 Notice.
- Sometimes you can just provide the information required and the IRS will accept it.
- A CP2000 notice is an Underreporter Inquiry that gets issued when the filed tax return does not resemble income information reported to the IRS by third parties.
- After you’ve evaluated the information, you can choose from the following steps to respond to the IRS.
- Payment of the proposed amount within 30 days will stop additional interest, and possibly, additional penalties, from accruing.
- It’s important to note that third-party information may pertain to wages earned, retirement income, sales of assets, or self-employment income.
You may or may not agree with the IRS, but you must respond to avoid penalties and interest. Rather there are several types that will likely be offered and or discussed with you upon completing your request. All reasonable efforts are made to provide and maintain accurate information.
Where can I get additional help?
If the income information reported on your information returns is not matching the income information that IRS already has on file, then the AUR will generate an automatic under-reporter (AUR) notice, a CP2000. In a nutshell, when there is an income information mismatch in the returns filed by you and the information that IRS already has on file, the AUR generates an automatic CP2000 notice. 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.
These programs include the installment agreement (payment plan), offer in compromise and currently non collectible status (CNC). If you agree with the proposed changes, complete, sign and date the Response form (we require both spouses’ signatures if you filed married filing jointly) and return it in the what is a cp2000 notice enclosed envelope. The CP2000 generally includes interest which is calculated from the due date of the return (regardless of extensions) to 30 days from the date on the notice; certain penalties may also apply but may not be shown. Interest continues to accrue until the amount due is paid in full.