CP2000 Notices: How to Handle
IRS Notice Explained
IRS Notice CP2000 is referred to as the Notice of Proposed Adjustment for Underpayment/Overpayment and is the most common notice sent out by the IRS. The IRS compares informational returns filed by companies on Forms W-2, 1098, 1099, etc. with information as reported by the taxpayer on their return. When the discrepancy is found within income, deductions, credits and/or payments a CP 2000 notice is issues.
It is important to note that the IRS will NEVER call or email you. All IRS notices are sent via U.S. Mail. The common format for these notices includes the tax amount due, noted along with any interest and penalties. Further into the notice, the letter explains the examination process and how you, as the tax payer, can respond.
What to Do With A CP 2000 Notice
CP2000 notices have become more common due to businesses filing with budget tax software. There could be software bugs that cause miscalculations in addition to human error. Issues like transposed numbers, missed check boxes, overlooked income and a misunderstanding of a deduction can all potentially raise red flags. The IRS uses an automated matching system, so it is possible a notice can be sent to you in error. Be advised that you will want to take immediate action upon receiving a CP2000 notice. Once the notice is received the IRS gives you a 30-day deadline to respond. By not responding within the allotted time then this can result in additional penalties.
John F. Stevens, CPA, PLLC is here to help you with the following:
- Identify the type of IRS notice and explain the specifics to you
- Complete the required forms to resolve the issue
- Serve as an advocate for you and your business throughout the process
- Work with the IRS to remove or reduce the assessed penalties
- Protect your property and assets from future penalties
No need for you to call the IRS, as we will handle all the details. If you do receive other IRS notices, we can help you with those, too! Contact us today.