You can also go to the IRS identity theft information web page to find out more about what you can do. At Jackson Hewitt, we have 40 years of expertise to help you manage your tax issues. Whether simple or complex, our team of licensed professionals are trained to work directly with the IRS, while keeping you updated every step of the way. Start for free today and learn about how we can help resolve your tax issues. You can disagree with some or all of the changes proposed by the IRS CP2000 notice. Your H&R Block tax professional can help you investigate the cause of your CP2000 notice and communicate with the IRS.
Usually, the deadline to respond is 30 days from the issue date printed on your letter. If you have any questions about the notice, you can call the listed IRS phone Irs Cp2000 Letter Overview number for further information. This process of gathering and comparing should help the taxpayer determine whether the IRS proposed change(s) are correct or not.
A CP2000 notice is a proposal, not a bill.
If you and a spouse file your taxes jointly, they will also need to sign the response form. Read the notice carefully and determine if you agree with the IRS calculation and then respond. If they do not include a response firm, they will include instructions on what you should do. Either way, you must respond within the time the notice indicates, usually 30 days from the date of the letter (not the date you received it) or 60 days if you were out of the country. That means the response must be delivered to the IRS within 30 days, it does not mean you have 30 days to mail it. If you can’t meet the deadline, call the number on the notice to ask for additional time to send a response.
- If you do not respond or if the IRS does not agree with your response, it will send you a CP3219A, Statutory Notice of Deficiency.
- The IRS reminds taxpayers this letter isn’t a formal audit notification but a letter to see if the taxpayer agrees or disagrees with the proposed tax changes.
- Employers, banks, businesses and others are required to provide the IRS forms each year that shows how much they paid a taxpayer.
- It could mean you underreported income for your self-employment taxes or freelance work you did as an independent contractor, for example.
- If you receive an email containing a CP2000 that you suspect might be a fake, forward it to and then delete it from your inbox.
- The CP2000 is a legal procedure that mimics an IRS Audit by the procedure of making changes to your taxes.
DeWitt Law represented Taxpayer and challenged the assessment with the IRS, resulting in the assessment being reversed to $0. DeWitt Law represented Taxpayer and challenged the assessment with the IRS, resulting in the assessment being reduced to $3,864. A CP2000 notice is automatically triggered if your tax return is flagged with Code 922 in the IRS’s internal database, and the IRS automatically sends the CP2000 letter 6 months afterward. This can potentially save you money in the form of penalties and interest you may no longer have to pay. The taxpayer should follow up with the CP2000 under-reporter unit to ensure the response is timely received. The IRS will typically issue a response of some kind within 30 days.
Do I need to amend my tax return?
You can get a copy of your return from your tax preparer if you used one. Otherwise, you can get a copy of your return by completing and sending us a Form 4506, Request for Copy of Tax ReturnPDF. The first page of the notice provides a summary of proposed changes to your tax, a phone number to call for assistance, and the steps you should take to respond.
- A common example of this is when the IRS receives the 3rd party report related to the sale of a home.
- You can disagree with some or all of the changes proposed by the IRS CP2000 notice.
- An IRS audit letter notifies you that your return has been selected for audit.
- The notice explains what information we used to determine the proposed changes to your tax return.
- Whether simple or complex, our team of licensed professionals are trained to work directly with the IRS, while keeping you updated every step of the way.
- Include a signed statement that details you why the proposed changes are incorrect.
It looks and acts like an IRS audit, but you’re not being audited. Receiving this computer-generated notice in most cases means that the IRS is questioning whether you underreported your income on your filed tax return. This notice informs you of the discrepancy and proposes a change to your tax payments or credits and gives you an opportunity to respond.
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However, it’s a good idea to follow up in writing using the CP2000 response form that was included with your CP2000 notice. That way, you’ll have a paper trail showing that you responded before the https://kelleysbookkeeping.com/which-one-of-the-following-accounts-will-not/ deadline. If you don’t want to sit on hold with the IRS, you can also ask a tax pro to work with the IRS on your behalf. There is no reason to panic if you receive a CP2000 notice from the IRS.
If you suspect you might be the victim of identity theft, contact the IRS and your state tax agency. If you receive an email containing a CP2000 that you suspect might be a fake, forward it to and then delete it from your inbox. Fraudulent CP2000s sent out by scammers impersonating the IRS have become more common in recent years. Sometimes referred to as “phishing” scams, these are usually sent over email and include a fake CP2000 attachment. If you suspect there might be a problem with the information your employer or bank has sent the IRS, contact the business or person who reported the information to double-check.
You may or may not agree with the IRS, but you must respond to avoid penalties and interest. The IRS matches returns with information from third parties normally after the original return due date. If you agree and would like to apply for an installment agreement plan by mail, send your signed response form and a completed Form 9465, Installment Agreement RequestPDF, and return it in the envelope provided. No, the notice is a proposal and informs you of a discrepancy between the information we received, and the information reported on your tax return. If the discrepancy remains unresolved, or we don’t receive a response to the notice, you may receive a subsequent notice and a bill at a later date. If you don’t respond to an IRS audit letter, respond late, send an incomplete response, or respond incorrectly, you will likely receive a tax bill, with penalties and interest, from the IRS.
If you agree with their notice, send back the CP2000 response form along with payment. But if you partially agree or disagree with the CP2000 notice, you must mail your response to the IRS with documentation proving your side. An IRS Notice CP2000 is sent to taxpayers when there is a discrepancy between the information on their tax return and data reported to the agency. This notice informs the taxpayer of this difference and provides instructions for resolving the inconsistency. There’s no reason to panic if you receive an IRS CP2000 notice.