These allow you to pay the owed amount in a series of monthly payments. Your tax attorney can also help you request an Offer in Compromise if you cannot pay the total amount. There are many factors that contribute to why the IRS computers might notice a mismatch in their information and send out a CP2000 notice.
You can also contact a tax attorney for professional assistance in these matters. You can return your response by mail or fax to the return address or fax number printed on the notice. Use the return envelope if you’re responding by mail, and make sure to keep a copy of the notice for your records. The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers and protects taxpayers’ rights. If you qualify for our assistance, which is always free, we will do everything possible to help you. But CP2000 notices are computer-generated and may not be right.
What this notice is about
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. Usually, it means that you didn’t report all of your income properly. It could mean you underreported income for your self-employment taxes or freelance work you did as an independent contractor, for example.
- You can complete and send Form 14039, Identity Theft AffidavitPDF, along with the completed response form.
- It will all depend on your situation and what the IRS is claiming.
- Once you respond to your CP2000, the IRS will send you a new, separate tax bill.
- It could also mean there was a mistake with some of the deductions and/or tax credits you claimed on your return.
- But if you want to avoid all of this, get an early extension of time to respond, and reply to the IRS by the new, agreed-upon deadline.
- They offer TaxFacts reports that include IRS transcripts as well as any unpaid penalties or balances owed.
- Keep in mind that the IRS can only accept additional information and correct a mistake over the phone if the mistake doesn’t increase or decrease your tax total.
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Understanding Your CP2000 Notice
In fact, many taxpayers who get a CP2000 notice don’t end up owing anything. CP2000 notices (underreporter inquiries) have a 30-day deadline, which can come quickly if you can’t find the information you need to prepare an accurate response. Failing to report income earned from the sale of your home or other property can prompt a CP2000 Notice. The IRS still requires you to report this type of income on your tax return.
