NOTICE CP2000

An IRS Notice CP2000, also known as a Notice of Underreported Income, is a letter that the IRS sends to taxpayers when it believes that they have underreported their income on their tax return. The notice will explain the proposed changes to the taxpayer’s return, as well as the amount of additional tax and penalties that the taxpayer may owe.

There are a number of reasons why a taxpayer might receive an IRS Notice CP2000. Some of the most common reasons include:

• The taxpayer omitted income from their tax return. This could be intentional or unintentional. For example, the taxpayer may have forgotten to report a certain type of income, such as self-employment income, investment income, or gambling winnings.
• The taxpayer claimed deductions or credits that they were not eligible for.
• The taxpayer made a mathematical error on their tax return.
• The IRS received information from a third party, such as an employer or financial institution, that does not match the information that the taxpayer reported on their tax return.

• If you receive an IRS Notice CP2000, it is important to respond promptly. You have 30 days to respond to the notice and provide the IRS with any documentation that you have to support your tax return. If you do not respond to the notice, the IRS may adjust your tax return and send you a bill for the additional tax and penalties that you owe.

• Read the notice carefully to understand the proposed changes to your tax return.
• Gather any documentation that you have to support your tax return. This may include W-2 forms, 1099 forms, receipts, and other financial records.
• If you agree with the proposed changes to your tax return, you can pay the additional tax and penalties online, by mail, or by phone.
• If you disagree with the proposed changes to your tax return, you can write a letter to the IRS explaining your disagreement. You may also want to include any documentation that you have to support your position.