Did You Receive A CP2000?
A CP2000 IRS letter notifies you when the IRS receives income, deduction, or credit information from third-party sources. And, it does not match your return.
On the CP2000 letter, the IRS computes the proposed adjustments to your tax return based upon this information. If you agree, you sign and return the agreement forms as instructed in the letter. However, if you disagree, you can submit a request to appeal to the IRS.
The letter explains how to file a protest. However, depending on the complexity of the issue, it may make sense to engage the experienced Tax Resolution services, such as Tax Samaritan, that can serve as your representative with the IRS. Timing is crucial as you will need to file your protest within 30 days of the date of the CP2000 letter 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 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. However, 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.