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What to do when you receive CP2000?

When the IRS sends out CP2000 letters, they explain in detail what the taxpayer needs to do to resolve the issue.

CP2000 proposes a tax due and the taxpayer either agrees or disagrees with the proposed tax liability. The taxpayer needs to respond within 30 days. If the taxpayer doesn’t respond within 30 days or if the IRS can’t accept what the taxpayer included as additional information, the IRS will send CP3219A Statutory Notice of Deficiency. This notice will also provide detailed steps of what steps the taxpayer needs to take to resolve it.

It may take months or even years after you file your tax return and before you receive the notice. Don’t think that once you filed everything and the IRS issued you a refund- they had no problem with what you entered in your tax return. The IRS doesn’t work as fast as you think. Although, their machines still work and match taxpayers’ income to find errors.

What we can do to help taxpayers avoid receiving painful CP2000 letters?

We have a program to give” heads-up” for the CP2000 letters.  We can monitor taxpayers’ transcripts and timely tell the taxpayer if there is a problem with their tax return. If that’s the case, the problem can be timely addressed, which may prepare you for the CP2000 and in some cases even an audit. You can subscribe to this program here: Contact us for more details.

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