What is an IRS CP2000 notice?
Short answer: A CP2000 says the income on your return does not match what employers, banks or brokers reported to the IRS. It is a proposal, not a final bill.
A CP2000 means the IRS compared your return with W-2s, 1099s and other information returns and found income or payments that do not match. The notice lists each item and proposes a change to your tax, usually with interest and an accuracy penalty.
It is not an audit and it is not a final bill. You can agree, partly agree or disagree. The notice gives a response date, usually about 30 days out. Missing that date lets the IRS finalize the change.
What to do:
- Compare each listed item with your records. Common causes are a missed 1099, a brokerage sale without cost basis, or income reported under the wrong Social Security number.
- If the IRS is right, sign the response page and pay or set up a payment plan.
- If the IRS is wrong or missing cost basis, send a written explanation with documents before the deadline.
An Enrolled Agent can review the notice, rebuild the numbers and respond for you with a power of attorney (Form 2848).
General information from Davis Schuler & Associates, LLC, not advice for your situation. Tax rules and thresholds change; confirm the current rules before acting.
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