CP 2000 Notice
Why did I receive the CP 2000 notice?
This notice shows proposed changes to your income tax return. It's referred to as the Notice of Underreported Income and is the most common notice sent out. The IRS compares information filed by companies on forms W-2, 1098, 1099, etc. with your tax return. They mail a notice if there are differences.
Is this a bill?
Not necessarily. They're asking you to verify the information reported on your return because it's different from what they received from other sources. This is only a proposal. It gives you opportunity to disagree, partially agree, or agree with the changes.
If you agree, pay the amount owed and mail it with the response page or send the response page back without payment. If no payment is made, they'll bill you for the amount due plus interest.
How do I know if the changes are correct?
Review the column marked Shown on Return and compare it with the column marked As corrected by IRS. Did you receive the income? If you received the income, was it reported on your tax return? IRS employees search the tax return and try to locate all income. However, sometimes several income items are combined and the employees can't determine the source. If it wasn't reported on your tax return, was it an oversight?
The IRS is often wrong
Don't automatically agree with the changes made. In many cases, the reported tax due on the notice is not correct. Read about common IRS mistakes and errors here.
What do I do if I agree with the changes?
If you agree, check the box saying you agree with all changes on the response page and mail it to the IRS. If you want to pay, make your check payable to the United States Treasury. If you agree with the increase but you can't pay the entire balance due, you may be able to request an installment agreement.
What do I do if I disagree with the changes?
DO NOT SIGN THE NOTICE. Instead, check the box saying you don't agree with some or all of the changes on the response page and explain why you disagree in a signed statement. Attach the statement and supporting documents to the response page to send them. Include your phone number and the best time of day to call.
If I disagree, should I call with my response or mail it in?
Your response may be just directing them to a line on your return where you included the income with another income source. If this is the case, call the phone number listed on the notice.
If it's more complicated and you disagree with some or all of the proposed changes, send a written response with a complete explanation of the reasons you disagree. Attach copies of any relevant documents. These may include copies of Form 1099-MISC, Form W-2c, letters received from payers explaining changes or corrections, or any other items that support your position.
I need more time to find my records and go through them all. Will they allow me additional time to respond?
It's important that you respond to the notice by the due date shown. If you don't, they'll assume the proposed changes are correct and continue processing the return according to their corrections, which may result in a balance due.
If you can't respond by the due date, call the number on the notice and they'll update their records to show you've requested an extension.
Generally, they'll allow 30 days beyond the response date shown on the notice. If you have unusual circumstances, they may also provide additional time. Remember interest and penalties will accrue on the account during the extension time if the tax increase is correct.
Why did it take them so long to contact me about this?
Tax years end on December 31, but they don't receive information from employers, banks, businesses, and other payers until much later. Once they receive all the returns and payer information, their system compares the information. This process can be very complicated and take a long time to complete.
Do I have to pay the interest? Can they remove it?
The law requires them to charge interest. However, it also requires them to notify you of the discrepancies within 18 months of the filing date. They may adjust the interest charge if they contact you after that time.
The law also allows them to reduce or remove interest on tax increases caused by errors or delays they made that occurred even though you did everything they required you to do. If you believe you qualify for abatement of interest, you should include your reasons in your response.
The law doesn't permit the IRS to reduce or remove interest for reasonable cause. Reasonable cause only applies to penalties and refers to an acceptable explanation of circumstances that prevented you from paying the tax when it was due.
You can sign in to your IRS Online Account for additional information.
For additional information, click on any of the topics below.
What to do if you disagree with the IRS tax notice
Getting rid of tax penalties
What to do if you do not have the money to pay the IRS
This notice shows proposed changes to your income tax return. It's referred to as the Notice of Underreported Income and is the most common notice sent out. The IRS compares information filed by companies on forms W-2, 1098, 1099, etc. with your tax return. They mail a notice if there are differences.
Is this a bill?
Not necessarily. They're asking you to verify the information reported on your return because it's different from what they received from other sources. This is only a proposal. It gives you opportunity to disagree, partially agree, or agree with the changes.
If you agree, pay the amount owed and mail it with the response page or send the response page back without payment. If no payment is made, they'll bill you for the amount due plus interest.
How do I know if the changes are correct?
Review the column marked Shown on Return and compare it with the column marked As corrected by IRS. Did you receive the income? If you received the income, was it reported on your tax return? IRS employees search the tax return and try to locate all income. However, sometimes several income items are combined and the employees can't determine the source. If it wasn't reported on your tax return, was it an oversight?
The IRS is often wrong
Don't automatically agree with the changes made. In many cases, the reported tax due on the notice is not correct. Read about common IRS mistakes and errors here.
What do I do if I agree with the changes?
If you agree, check the box saying you agree with all changes on the response page and mail it to the IRS. If you want to pay, make your check payable to the United States Treasury. If you agree with the increase but you can't pay the entire balance due, you may be able to request an installment agreement.
What do I do if I disagree with the changes?
DO NOT SIGN THE NOTICE. Instead, check the box saying you don't agree with some or all of the changes on the response page and explain why you disagree in a signed statement. Attach the statement and supporting documents to the response page to send them. Include your phone number and the best time of day to call.
If I disagree, should I call with my response or mail it in?
Your response may be just directing them to a line on your return where you included the income with another income source. If this is the case, call the phone number listed on the notice.
If it's more complicated and you disagree with some or all of the proposed changes, send a written response with a complete explanation of the reasons you disagree. Attach copies of any relevant documents. These may include copies of Form 1099-MISC, Form W-2c, letters received from payers explaining changes or corrections, or any other items that support your position.
I need more time to find my records and go through them all. Will they allow me additional time to respond?
It's important that you respond to the notice by the due date shown. If you don't, they'll assume the proposed changes are correct and continue processing the return according to their corrections, which may result in a balance due.
If you can't respond by the due date, call the number on the notice and they'll update their records to show you've requested an extension.
Generally, they'll allow 30 days beyond the response date shown on the notice. If you have unusual circumstances, they may also provide additional time. Remember interest and penalties will accrue on the account during the extension time if the tax increase is correct.
Why did it take them so long to contact me about this?
Tax years end on December 31, but they don't receive information from employers, banks, businesses, and other payers until much later. Once they receive all the returns and payer information, their system compares the information. This process can be very complicated and take a long time to complete.
Do I have to pay the interest? Can they remove it?
The law requires them to charge interest. However, it also requires them to notify you of the discrepancies within 18 months of the filing date. They may adjust the interest charge if they contact you after that time.
The law also allows them to reduce or remove interest on tax increases caused by errors or delays they made that occurred even though you did everything they required you to do. If you believe you qualify for abatement of interest, you should include your reasons in your response.
The law doesn't permit the IRS to reduce or remove interest for reasonable cause. Reasonable cause only applies to penalties and refers to an acceptable explanation of circumstances that prevented you from paying the tax when it was due.
You can sign in to your IRS Online Account for additional information.
For additional information, click on any of the topics below.
What to do if you disagree with the IRS tax notice
Getting rid of tax penalties
What to do if you do not have the money to pay the IRS
