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. Just access our accountant network and ask to be paired with an enrolled agent. 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. 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.
Other causes of tax information mismatches include forgetting income from the sale of stock, an employer reporting error, or the details of flexible spending accounts. It can cp2000 notice even be something as simple as overlooking a check box somewhere on the forms. A CP2000 is also known as an automated underreporter notice or notice of underreported income.
Understanding Your CP2000 Notice
Due to the complexity of the matching process, it can take months to complete. Keep in mind that if your response does not provide the IRS with sufficient information to resolve the issue, you may receive an IRS Notice CP3219A, Statutory Notice of Deficiency. With a CP3219A, the IRS provides additional information about the tax change and offers you the option to challenge the decision in tax court.
- No matter what triggered the CP2000 notice, you and your client need to look at the information provided by the IRS and go through the tax return to see whether the claims are correct.
- In most cases, the IRS will have resolved (or be close to resolving) the issue.
- A tax professional from our trusted tax resolution partner can help you navigate the CP2000 notice and any taxes owed from it.
- Sometimes, the IRS can question deductions or credits you took that don’t match information statements filed under your Social Security Number.
If the tax balance changes based on the information you are going to provide, you or your representative need to mail in response. Low Income Taxpayer Clinics (LITCs) are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language.
Most common events that frequently result in a CP2000 notice
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. It is a good idea to contact the IRS at the phone number provided in order to get a clear understanding of the discrepancies and proposed changes.
The IRS receives information from third parties, such as employers and financial institutions. 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.
What to Know About Fraudulent CP2000 Notices
You can also include a request for an installment agreement or extension when you reply, options that are discussed more below. 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.
If you want to contest the proposed changes, complete and return the response form indicating that you disagree. 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. Ensure you respond to the notice timely even if you pay online or set up a payment plan. You can complete and send Form 14039, Identity Theft AffidavitPDF, along with the completed response form. You can also go to our identity theft information webpage to find out more about what you can do.
