The IRS CP2000 notice is used when the information on your tax return doesn’t match a W-2, 1099, or other informational tax form received by the IRS. There could be several reasons you’re receiving a CP2000 notice:
- You may have made an error on your tax return.
- Your employer, financial institution, or another third party may have made an error when completing the informational tax form.
- Someone else may have used your personal information to obtain employment, making you a victim of tax identity theft.
- The IRS computer system may have made an error.
Read the CP2000 notice carefully to determine the best way to respond.
Responding to the CP2000 Notice
First, you need to determine whether the information on the notice is correct. You can contact the IRS using the attached response form or by following the instructions on the form.
If the information on the CP2000 notice is correct, you can sign the response form and return it to the IRS. You won’t need to amend your return, and the IRS will automatically adjust your tax liability. Note the CP2000 Notices can result in tax owed, but can also be sent when you are due a bigger tax refund.
If you owe the IRS money, you can either pay in full or examine your tax resolution options.
If the notice was sent because your employer or another third party made an error, you’ll need to contact this person or business. They should send you a corrected form and you can send a copy to the IRS.
The IRS will then review your response and determine whether or not to issue you a Notice of Deficiency.
Notice of Deficiency
The CP2000 Notice is not a tax bill or a formal tax assessment. If the adjustment results in additional tax liability, the IRS will send you a Notice of Deficiency.
You have several options once you receive the Notice of Deficiency:
- You can agree to the tax assessment. The IRS will then send you a bill.
- You can attempt to negotiate with the IRS and dispute the tax liability.
- You can take your case to Tax Court by filing a petition within 90 days.
Contact a tax attorney if you need help responding to an IRS CP2000 Notice.
If you need help disputing an adjustment to your tax return, call (770) 939-7710 to schedule your consultation with one of the tax attorneys at The Gartzman Law Firm.