The CP2000 is a notice commonly mailed to taxpayers through the United States Postal Service. It is generated by the IRS Automated Underreporter Program when income reported from third-party sources such as an employer does not match the income reported on the tax return.
What to do if you Receive a CP2000 Notice:
The CP2000 is not a tax bill, it merely informs you about the information the IRS has received and how it affects your tax; however, it is important to pay attention to what your CP2000 Notice states because interest accrues on your unpaid balance until you pay it in full. If you cannot pay the full amount that you owe, then you can set up a payment plan with the IRS.
If you receive a CP2000 Notice in the mail complete the response form. If your notice doesn’t have a response form, then follow the notice instructions. If the new information is wrong, then check the notice response form for instructions on what to do next. You also may want to contact whoever reported the information and ask them to correct it.
Note: If the information is wrong because someone else is using your name and social security number please call the IRS and let them know. You also can the link on the IRS Identity theft information webpage to find out more about what you can do.
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. If you agree with our 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. If you need assistance with this, please call the office.
How to Avoid Receiving a CP2000 Notice:
- keep accurate and detailed records
- wait until you receive all of your income statements before filing your tax return
- check the records you receive from your employer, mortgage company, bank, or other sources of income (W-2s, 1098s, 1099s, etc.) to make sure they are correct
- include all your income on your tax return including that from a second job or fees derived from the sharing economy (e.g. renting a spare room out on Airbnb)
- follow the instructions on how to report income, expenses and deductions
- file an amended tax return for any information you receive after you’ve filed your return
- Use a professional tax preparer who will help you avoid mistakes and find credits and deductions you may qualify for.
Beware of Fake IRS Tax Bill Notices
Taxpayers and tax professionals should be on guard against fake emails purporting to contain an IRS tax bill related to the Affordable Care Act. Generally, the scam involves an email notice that is sent electronically–even though the IRS does not initiate contact with taxpayers by email or through social media platform. The fake CP2000 notice is sent as an attachment.
Don’t hesitate to contact the office if you have any questions about IRS notices or letters you have received in the mail or otherwise.