The CP2000 notice is issued by the IRS when there’s a discrepancy between the information you reported on your tax return and what third parties (such as employers, banks, or financial institutions) reported to the IRS.
What to Do If You Receive a CP2000 Notice
Receiving a CP2000 doesn’t automatically mean you owe money but you have to deal with it. Here’s how to handle it:
1. Read the Notice Carefully
- The CP2000 notice will outline the proposed changes and include details of the income or deduction discrepancies.
2. Compare with Your Records
- Review your tax return and compare it with your records (e.g., W-2s, 1099s, bank statements).
3. Respond to the IRS
The CP2000 notice typically includes a response form. You have options:
- Agree with the Changes: If you confirm that the IRS’s adjustments are correct, you can sign and return the form, along with any additional payment if required.
- Disagree with the Changes: If you believe the IRS is incorrect, provide a written explanation and include supporting documentation.
4. Meet Deadlines
The notice will specify a response deadline. It’s crucial to respond within this time frame to avoid additional penalties or interest.
5. Seek Professional Help
If you’ve received a CP2000 notice and need assistance, don’t hesitate to reach out to us at (972) 821-1991 We’re here to help you navigate the process and ensure the best possible outcome.
