Questions About IRS Tax Notice CP 2000 Answered

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You were notified of an IRS Tax Notice CP-2000 because the IRS made Adjustments to your IRS tax return due to the fact that the information reported to them didn't match the submitted paperwork sent to them by your financial institution, your current place of employment or any other company/institution that has paid you. This can be an honest mishap on your part or on your employer's part, but either way, you have to make a one time in full payment or get professional help if you would like to not have enormous IRS issues.

"We Are Making Changes to Your IRS Tax Return" Illustrated

The IRS issues Notice CP 2000 provides detailed information about the distinct differences between the information given on your IRS Tax return and information submitted to them by employers, banks, and any other people that have been giving you money through the tax year. The IRS Notice CP 2000 is basically a list letting you know all the anomalies and the Modifications that will be adjusted on your IRS Tax Return.

IRS Notice CP-2000 arrived in the Mail today

The IRS Notice CP 2000 is designed to list the recommended adjustments to your IRS Tax Return based on an analysis of the income, payments, credits, and deductions reported on your tax return and the paper work issued to them by other institutions that have paid you. The recommended modifications and what actions you should take from here will be included in the IRS Notice CP 2000.

Is CP-2000 an invoice the IRS is Using to Request Money?

Don't be duped into thinking a CP2000 is an IRS invoice like many other IRS notices are, this warning is sent out to ask you to confirm or contest the listed information so an action can be taken from there. This notice may even indicate a reduction in the taxes they say you owe to the IRS. For the most part, you really may only need to review the data and agree that the information in the IRS Notice CP 2000 is on point and move on from there. At the time IRS Notice CP2000 is mailed, you should not owe an IRS tax debt for the time in question, but you may owe if you don't take the right path.

Action Steps for IRS Notice CP-2000

Compare the "Show on Return" and "Reported to the IRS"/"Proposed by the IRS" columns contained in IRS Notice CP2000 to come up with the following data:

  • The IRS would like to know if you earned any income, and if you did receive it they want to know if it was submitted with your IRS tax return.
  • If the funds were omitted from your return, was it an mistake?
  • What sort of documentation have you got disproving the difference?

The IRS wants to create less work in the long run, so just select box "A" if the income you did not report was a simple oversight and don't bother filing an amended IRS tax return. If you don't coincide with the IRS's Notice CP2000 and the suggested modifications to your IRS tax return you should consider working with a Tax Professional to help you resolve your IRS issues.

But I need More Time to Find my Paperwork- What Should I Do?

The IRS won't go easy on you. Even though it could take you a long time to find all the files and papers needed to make a case they want you to reply to the CP-2000 by the due date in the notice. Take too long and the IRS will simply apply the adjustments they suggested without giving you much consideration! Working with an experienced tax relief expert or a tax relief organization will be beneficial in getting the facts you need before the deadline day.

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