What the IRS is asking for
The CP2000 includes a proposed amount of additional tax, plus interest and an accuracy-related penalty (usually 20%). You can agree, partially agree, or disagree. Ignoring the notice leads to a Notice of Deficiency and automatic assessment.
What to do in the next 30 days
Verify each proposed change against your records. Respond in writing with documentation for disputed items, signed Form 9465 or installment agreement request for agreed amounts you can't pay in full, and a request for Appeals if you disagree and don't resolve at the examination level.
- Don't panic, these notices are common and often wrong
- Don't check the box agreeing to everything without reading each line
- Gather the missing 1099 or document the why the IRS is mistaken
- Respond in writing, keep a copy of everything sent
- If you agree with some items and not others, pay what you owe to stop interest
Common questions
- What if the CP2000 is wrong?
- Respond with documentation. Maybe the income was already on your return under a different line, maybe it was a corrected 1099 you never received, maybe the IRS misread a form. We dispute wrong notices regularly.
- Can I get more time?
- Yes. Call the number on the notice and request a 30-day extension before the deadline. Most are granted.
Related
IRS Notice & Letter Response
Responding to IRS notices (CP2000, CP14, CP504, LT11 and others) within the deadline, with proper documentation.
IRS Audit Representation
Herman Viglione, EA, represents taxpayers in IRS and state audits. Correspondence, office, and field audits handled remotely nationwide.
Responding to an IRS CP14 Balance-Due Notice
The CP14 is the first balance-due letter after filing. Pay, dispute, or set up an installment agreement within 21 days.
Responding to an IRS CP501 Reminder
The CP501 is a reminder that your balance is still due. Next step is CP503, then CP504 (intent to levy).