Interest continues to accrue until the amount due is paid in full. Payment of the proposed amount within 30 days will stop additional interest, and possibly, additional penalties, from accruing. You may pay the proposed amount or, if you return the Response form without payment, you can wait until the IRS adjusts your account and sends you a bill. Again, if you wait, interest will accrue until the amount is paid in full.

• We endeavor to ensure that the information on this site is current and accurate but you should confirm any information with the product or
  service provider and read the information they can provide.
• This section will show your income and tax as you originally reported it.
• Include your phone
  number with area code and the best time of day to call.
• Low Income Taxpayer Clinics (LITCs) are independent from the IRS and TAS.
• These notices propose changes to your tax return when your return doesn’t match income information the IRS has on file about you (like Forms W-2 and 1099).

CP2000 notices can also result in a decrease in tax (you get money back) or no change in your tax liability. You will usually have 30 days from the date of the notice to contact the IRS. If you need more time to find the documents you need, you can call the IRS to ask for more cp2000 notice underreported income notice time. They will usually grant one 30-day extension if your original deadline hasn’t passed. Our TurboTax Audit Support Guarantee gives you free audit guidance from a trained tax professional to help you understand your IRS notice and answer all your audit-related questions.

What to Do About a CP2000 Notice

The IRS also accepts faxes, and some tax professionals say this is a better way to respond because it’s faster and you know they got it. The CP2000 fax number also varies based on where you live and your specific tax issue. The CP2000 mailing address varies based on where you live and your specific tax issue.

The IRS sends a certified letter – CP3219 – to begin assessing this tax. Once the IRS sends this letter, you have 90 days to appeal the IRS decision with the US Tax Court if you don’t agree with the IRS. As an independent organization within the IRS, the Taxpayer Advocate Service helps taxpayers resolve problems and recommends changes that will prevent problems. If you think you’ll have trouble paying your taxes or the NFTL filing will cause economic hardship, it’s helpful to know what your options are to address your tax debt. If you don’t agree with the adjustments, you should respond to the notice or contact a tax professional to request assistance.

What happens if you don’t respond to the Notice of Underreported Income?

You may try to set up a pre-assessed installment agreement, but many IRS agents will just advise you to make voluntary payments. If you see a 1099 or other tax form from an entity you’ve never worked for or done business with, it could be a sign that someone is fraudulently using your SSN. You’ll need to submit the IRS Identity Theft Affidavit form along with your CP2000 notice response form. A CP2000 notice generally doesn’t mean you’re at risk of being prosecuted for tax evasion. The IRS generally only brings criminal tax evasion cases for very large amounts of taxes and/or an ongoing pattern of evading taxes. If you forgot one 1099 in one year or made a mistake when you filed, you probably don’t have anything to worry about other than interest and penalties.

• LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS.
• This notice basically proposes taxes, and possibly penalties, you might owe for missing income on your return.
• If the mistake affects what you owe, you must submit corrections in writing.
• Or, if the IRS can’t reasonably expect you pay your balance, they may accept an offer for a portion of the amount.
• The first page of the notice provides a summary of proposed changes to your tax, a phone number to call for assistance, and the steps you should take to respond.

You will also see the name of the
payer, their ID number, and the kind of document that was issued, (i.e.; W–2,
1099) and the Social Security number of the person the document was issued
to. It can propose
additional tax you owe IRS, or it may show a refund due to you. Be sure that
you review this information carefully to verify its accuracy.

Evaluate your situation and decide on the right response.

It provides
a brief summary of the notice and instructions on what you should do to determine
if you agree or disagree with the proposed changes. We created the Wiztax system to allow anyone to start the process of getting their tax issues resolved online and filed without having to spend thousands on high priced lawyers or tax resolution firms. No, an IRS CP2000 notice is not a tax bill or an audit notice. This letter simply notifies you that the income you reported is different from what the IRS expected. In some cases, this difference may result in an underpayment and in others an overpayment.

You can choose one of the payment options listed on our Payments page. If making a payment, be sure to use the enclosed payment voucher to ensure proper application of your payment. If your request for an installment agreement is approved, you may be charged a user fee.