Did you receive a CP2000 notice from the Internal Revenue Service? Even if you just opened it, you might already feel confused, anxious, and overwhelmed about what will happen next. “What is a CP2000 notice?!” you’ll wonder.
It’s perfectly natural to feel this way. Studies have shown about 20% of Americans who know they’ll owe taxes to the IRS already report feeling “extremely” stressed out. Receiving a CP2000 notice can cause their stress levels to skyrocket even more.
So, what is a CP2000 notice, and how should you respond to seeing one show up in your mailbox? Here is everything you need to know about these fear-inducing IRS notices.
Some notices Americans receive from the IRS are complicated to explain. Thankfully, a CP2000 notice doesn’t fall into this category.
A CP2000 notice is designed to let you know that the third-party information the IRS received regarding your income doesn’t match the income information you submitted with a tax return. For example, you may have forgotten to include income listed on a W-2 or a 1099-MISC form.
A CP2000 notice will serve to:
When wondering, “What is a CP2000 notice?” you might assume it’s a bill from the IRS, but this is not the case. Instead, look at it as an income discrepancy resolution that the IRS has come up with to ensure tax filing compliance on your part.
Don’t toss this notice aside and forget about it. Spring into action to prevent further notices from showing up at your front door.
Receiving a CP2000 notice from the IRS isn’t the end of the world. Correcting a tax return often makes things right with the agency.
However, you must take a few key steps to avoid further complications. Here is what you should do when a CP2000 notice lands in your lap:
Whatever you do, you should not ignore a CP2000 notice. If you don’t act, the IRS may send you a tax bill for the amount it believes you owe.
After discovering the answer to the question, “What is a CP2000 notice?” and hearing about what to do when you receive one, you should be ready to respond accordingly. The IRS provides a few options for those who need to issue a response. These include:
You may also need to start filling out Form 1040-X, an amended income tax return form. You will only need to do this if a CP2000 notice is correct and you have income to add to a previous return.
Now that you know the answer to the question, “What is a CP2000 notice?” you may feel ready to handle your IRS issues independently. You might also appreciate a helping hand from the experienced tax consultants at Levy & Associates.
Give us a call at 313-447-1704 today or complete this brief form to connect with a tax professional who can provide tax discrepancy resolution services.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.