If you disagree with the IRS’s claims of underreported income, Wiggam Law can help you timely respond to IRS notice CP2000 and avoid further scrutiny.
A CP2000 notice is a letter from the IRS alerting taxpayers that their reported income does not match that computed by the agency. The letter is not an audit notification, but it does:
- provide a detailed description of discrepancies identified by the agency
- signify underreported income
- require immediate response
What Is a CP2000 Notice?
When a taxpayer receives a CP2000 notice, it means the IRS has determined through information provided to it by financial institutions, employers, and other third parties that the taxpayer underreported income and owes more tax. The disparity could be a small amount, related to a simple correction, or it could be more complicated and involve larger amounts of money as well as multiple returns.
How To Write a CP2000 Disagree Letter
The CP2000 notice will either be accompanied by a response form or contain instructions on the notice itself for next actions. Generally, a taxpayer has 30 days to respond to the IRS. While the notice is not a bill, interest does accrue on any amounts until they are paid.
Three ways to respond to IRS notice CP2000:
- If a taxpayer agrees with the CP2000 notice — they can follow the instructions on the response form or notice, sign, and return it.
- If a taxpayer does not agree with the IRS’s new assessment — then they may appeal the IRS’s recalculation.
- If a third party, such as a bank or employer, has reported incorrect information and that is causing the discrepancy — it is the taxpayer’s responsibility to contact the third party and ask them to submit a correction to the IRS.
Sometimes a discrepancy will have an impact on other returns. Taxpayers should review their other returns for the same mistake and respond accordingly.
What Happens if I Don’t Respond to Notice CP2000?
If a taxpayer ignores the CP2000 or doesn’t respond by the due date, the IRS will follow up with CP-3219-A, which is a statutory notice of deficiency. These notices are more serious and require more than simply following instructions and filling out a form or requesting an appeal. A challenge to this notice requires filing a petition with the U.S. Tax Court by the date specified on the notice. The court does not accept late petitions.
What if I Think I am the Victim of Fraud?
If the discrepancy is related to fraud or a stolen Social Security number, you should contact the IRS and complete Form 14039, Identity Theft Affidavit. Also, watch out for false CP2000 letters sent by scammers. If you suspect you have received a fake notice, you can always contact the IRS to confirm whether it sent the letter.
If you have received a CP2000 notice claiming you have a large amount of underreported income, and you believe it to be incorrect, it is best to act quickly and hire an experienced tax attorney as soon as possible. Our team of experienced tax attorneys can help you evaluate all your options and represent you. Give us a call today at (404) 233-9800 to get started.