Sometimes a taxpayer receives a 1099 or other tax form in the mail after filing their return. Usually the sophisticated IRS computer system catches these errors. The IRS sends Form CP 2000 to inform the recipient of changes the IRS is proposing to their tax return because information they reported on it does not match what their employers, banks, and other payers reported to the IRS. The IRS sends a CP 2000 to provide detailed information about those differences, the changes proposed, and what to do if they agree or disagree with the proposal. The CP 2000 reflects any corrections the IRS made to the original return, and considers those changes in a recalculation of the tax due. It is possible that these changes result in a decrease in tax due, but usually an increase is the result.

An individual may receive the following documents along with the CP 2000:

  • Notice 609, Privacy Act Notice
  • Publication 5, Your Appeal Rights and How to Prepare a Protest if You Dont Agree
  • Publication 1, Your Rights as a Taxpayer
  • Publication 594, What You Should Know About The IRS Collection Process

The CP 2000 is only a proposal that offers you an opportunity to disagree, partially agree, or agree with the proposed changes. The IRS has not charged any additional tax at this point. Its important that you respond to the CP 2000 by the due date shown on the notice. If you dont, the IRS assumes the proposed changes are correct and will continue processing the proposal ultimately to an assessment. If you cant respond by the due date on the notice because you need more time to research your records, you can call the IRS to request an extension. Generally, they will allow an extension 30 days beyond the response date shown on the notice. Its important to remember that additional interest and any applicable penalties will accrue on the account during the period of the extension if the tax increase is correct.

If you have received one of these notices awnser it or take it to your tax preparer to help youi with it.

We would be happy to help you with it.

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