What to Do if You Receive an IRS CP2000 Notice
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The IRS CP2000 notice is a letter the IRS sends out proposing changes to your taxes. The changes are in addition to the income that was not included on your originally filed tax return. If you agree with the notice, send the CP2000 response form back to the IRS with payment . If you can’t pay the entire amount, you can request an installment agreement with your CP2000 response. No, the notice is a proposal and informs you of a discrepancy between the information we received, and the information reported on your tax return. If the discrepancy remains unresolved, or we don’t receive a response to the notice, you may receive a subsequent notice and a bill at a later date. Response Section – The Response Section of the CP 2000 is where you can indicate whether you agree or disagree with the proposed changes and submit additional information to the IRS.
Filing online can help you avoid mistakes and find credits and deductions you may qualify for. You can also go to our identity theft information webpage to find out more about what you can do. Contact us with any unanswered questions you have or if you need time to respond to the notice. If you contact us by phone, keep in mind call volumes may be high and it could take some time to reach a representative.
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1) Cover Letter to the IRS Explaining the disagreement. The IRS CP2000 is a legal procedure in which the IRS automatically changes your taxes by adding tax, interest & penalties. If you receive an email containing a CP2000 that you suspect might be a fake, forward it to and then delete it from your inbox. Fraudulent CP2000s sent out by scammers impersonating the IRS have become more common in recent years. Sometimes referred to as “phishing” scams, these are usually sent over email and include a fake CP2000 attachment.
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You may or may not CP2000 Notice with the IRS, but you must respond to avoid penalties and interest. If the information displayed in your CP2000 notice is correct, you generally do not need to amend your tax return. We recommend speaking to a tax professional anytime you are unsure if you need to amend or not. If you need to review your tax return, you can always order a transcript directly from the IRS or partner with a service like 20/20 Tax Resolution. They offer TaxFacts reports that include IRS transcripts as well as any unpaid penalties or balances owed. 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. Learn more about your payment options if you owe additional taxes.
Step #1: Read the Notice and Review Your Data
Self-employed https://www.bookstime.com/s -– including gig workers -– who accidentally forget to report income might receive a CP2000 Notice. With more and more people earning income outside of a traditional W-2 job, there’s a chance you could forget to report income and get a CP2000 Notice as a result. This article will walk you through what a CP2000 Notice is, how to respond, and some best practices you can follow to avoid getting one in the first place. The IRS sends out CP2000 Notices every year that identify discrepancies in reported income. Often this is because someone forgets to report a stream of income that the IRS wants to assess. ShutterstockOne of the best things you can do during tax season is to keep good records of all your sources of income.
- To determine if a CP2000 Notice that you received in the mail is real, go to the IRS website and use the search term, “Understanding Your CP2000 Notice.” You will see an image of a real notice.
- Keep in mind that you must respond within 30 days from the date the income discrepancy letter was issued.
- You may also be eligible for an Offer In Compromise if you cannot pay the full amount owed.
- Tax fraud information, in the event that your CP2000 IRS Notice has been issued as the result of fraudulent behavior.
- Whether or not you agree with the proposed changes to your tax return, you must respond to the notice.
- Visit IRS.gov and choose “direct pay” to submit your payment.
