Did You Receive A CP2000?
A CP2000 IRS letter notifies you when the IRS receives income, deduction, or credit information from third party sources that does not match your return.
On the CP2000 letter, the IRS provides a computation of the proposed adjustments to your tax return based upon this information. If you agree, you simply sign and return the agreement forms as instructed in the letter. However, if you do not agree, you can submit a request to appeal/protest to the office or individual that send you the CP2000 letter.
The letter explains how to file a protest. However, depending on the complexity of the issue, it may make sense to engage the services of an experienced Enrolled Agent, such as Tax Samaritan, that can serve as your representative with the IRS. Timing is important as you will need to file your protest within 30 days of the date of the CP2000 letter in order to appeal the proposed adjustments.
Answers to Common Questions
Why did I receive the notice?
The IRS received information from a third party that doesn’t match the information you reported on your tax return.
Is the notice a bill?
No. It informs you about the information we’ve received and how it affects your tax.
What do I need to do?
Complete the notice response form. (Follow the notice instructions if your notice doesn’t have a response form.)
What do I do if the information is wrong or if I disagree?
The notice response form has instructions on what to do if the new information is wrong. You also may also want to contact Tax Samaritan and ask for assistance in correcting the information.
Do I need to amend my return?
If the information displayed in the CP2000 notice is correct, you don’t need to amend your return unless you have additional income, credits or expenses to report. If you agree with the IRS CP2000 notice, follow the instructions to sign the response page and return it to the IRS in the envelope provided.
If you have additional income, credits or expenses to report, you may want to complete and submit a Form 1040-X, Amended U.S. Individual Income Tax Return. You can receive help from Tax Samaritan.
The notice says my taxes will increase. Will I be charged interest on the money I owe?
Yes, interest accrues on your unpaid balance until you pay it in full.
What happens if I can’t pay the full amount I owe?
You can contact Tax Samaritan to represent you with the IRS to make a payment plan when you can’t pay the full amount you owe.
Our goal at Tax Samaritan is to provide the best counsel, advocacy and personal service for our clients. We are not only tax preparation and representation experts, but strive to become valued business partners. Tax Samaritan is committed to understanding our client’s unique needs; every tax situation is different and requires a personal approach in providing realistic and effective solutions.
If you’ve received a CP2000 IRS letter, please click the button below and select “Tax Problems with the IRS/State” to see how we can help and for a free 30-minute consultation to discuss your situation further. Please feel free to securely and privately attach a copy of your IRS notices received and a copy of your tax return for the tax year in question and we will be happy to evaluate options available to you.
Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US tax preparation and representation. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.
When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a US taxpayer overseas, we further recommend that you seek a professional who is experienced in expat tax preparation, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).
Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.