- What it means
- Income reported to the IRS by a third party does not match your return. This is a proposal, not a bill.
- Respond within
- 30 days from the date on the notice
- What to send
- The response form, checked agree or disagree, with documents that explain any mismatch.
- Write it
- CP2000 response letter
- When to get help
- If the proposed tax is large or involves a sale of property, get help before you respond.
What the letter says
A CP2000 is not a bill and not an audit. The IRS matched documents it received (W-2s, 1099s, 1098s) against your return and found income or payments that do not match. The notice proposes a change to your tax and shows the computation.
Read the proposal
It lists each item the IRS thinks is missing and the payer that reported it. Sometimes the income is real and you left it off. Sometimes it is duplicated, reported under the wrong year, or offset by basis the IRS cannot see (stock sales are the classic).
Agree
Sign the response form, return it, and pay. Do not file an amended return; the CP2000 process handles the change.
Disagree, in whole or part
Check the disagree box, attach a short letter explaining each item and the documents that support you, and return it by the response date, usually 30 days. If you need more time, call the number on the notice and ask; the IRS usually grants it.
What comes next if you ignore it
A CP3219A statutory notice of deficiency, which starts a 90-day clock to petition Tax Court. Do not let a CP2000 get there.
What to gather
- The notice with the item-by-item list
- Your return with all schedules
- Every 1099, W-2, 1098, and K-1 for that year
- Brokerage statements showing cost basis for any stock sales listed
- Rollover confirmations for any retirement distributions listed
Write back
The CP2000 response letter tool builds the response in the order the IRS reads it. Fill it in, review it, print it, and send it with copies of the documents above and the notice stub on top.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.