NOTICE CP2030

IRS Notice CP2030, also known as a “Proposed Change to Your Tax Return,” is a notice that the Internal Revenue Service (IRS) sends to taxpayers when they have identified a discrepancy between the information that the taxpayer reported on their tax return and the information that the IRS has received from third parties. This information can come from a variety of sources, such as W-2 forms from employers, 1099 forms from banks and brokers, and information from other government agencies.

There are a number of reasons why taxpayers may receive a Notice CP2030. Some of the most common reasons include:

• Math errors on the taxpayer’s tax return: Even a small math error can trigger a CP2030 notice.
• Unreported income: Taxpayers may receive a CP2030 notice if they have failed to report all of their income on their tax return. This could include income from side jobs, investments, or other sources.
• Disallowed deductions: Taxpayers may also receive a CP2030 notice if they have claimed deductions that are not allowed by the IRS.
• Discrepancies between the taxpayer’s tax return and information from third parties: For example, if a taxpayer reports receiving $10,000 in interest income on their tax return, but the IRS has received a 1099 form from a bank showing that the taxpayer actually received $15,000 in interest income, the taxpayer may receive a CP2030 notice.

• If you receive a Notice CP2030, it is important to respond to the IRS by the deadline specified in the notice. You can either agree with the IRS’s proposed changes or disagree and provide the IRS with documentation to support your position.
• If you agree with the IRS’s proposed changes, you can simply pay the amount that is due or set up an installment agreement with the IRS. If you disagree with the IRS’s proposed changes, you should gather documentation to support your position and send it to the IRS by the deadline specified in the notice.