You may be able to set up a payment plan with the IRS if you are unable to pay the full amount owed. Additionally, if you cannot pay the full amount owed, it is important to contact the IRS as soon as possible to discuss your options. Ignoring the issue can result in further penalties and even legal action. By taking prompt action and communicating with the IRS, you can resolve the issue and avoid any further complications. Before responding to the IRS, you should determine whether the discrepancies found by the IRS are accurate. This may involve reviewing your tax returns and other financial documents to ensure that all of the information is correct.
What are my next steps?
There are plenty of scammers that may send you a fraudulent IRS CP2000 notice. Fake notices can look very convincing, but there are a few ways you can spot a fraudulent notice. Quite often, fake notices will request payments to “I.R.S.” rather than the United States Treasury. Fake notices might also include threatening language that promises harsh legal action against you unless you make your payment within a short span of time.
If you need more time
If you choose to file an amended tax return, write ”CP2000” on top of your return and attach it behind your completed response form. To ensure the information is sent to the proper area for processing, mail or fax the information to the address or fax number shown on the notice. Work with a licensed tax professional who does tax resolution work. Some tax professionals can predict CP2000 notices up to 6 months before the IRS sends them. They can do this by utilizing software that can help them quickly scan account transcripts for issues. The IRS inserts flags into a taxpayer’s account transcript showing that a taxpayer filed a tax return with unreported income.
- If they did review my response, they must have thought that nothing about the 8606 changed anything, because the amounts on the CP3219A are identical to the ones that were on the CP2000.
- To get a clearer picture, you may call the IRS directly for clarification.
- In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language.
- If they do not receive a response, they will send a second letter called an IRS Notice CP3219A.
- Make sure to submit all documents and information to the IRS by the due date to the address in the letter.
- Engaging with the IRS can be a daunting task for most of us, so it makes sense if this option feels a little overwhelming.
What To Do if You Agree With the Proposed Changes
If you’re feeling less than 100% confident in undertaking any of the steps above, it’s best to contact a tax professional. If the IRS finds that you have several instances of misreporting, they may investigate and find that you owe more on previous returns, as well. That is why we recommend that you work with a tax professional for your tax preparation services and income tax service, so that you can ensure your taxes are filed without issue. They can also assist with tax fraud information, in the event that your CP2000 IRS Notice has been issued as the result of fraudulent behavior. When responding to the IRS, you should include supporting documentation to support your position.
Taxpayer Rights
The income or payment information we received from third parties, such as employers or financial institutions, doesn’t match the information you reported on your tax return. This discrepancy may cause an increase or decrease in your tax or may not change it at all. The notice explains what information we used to determine the proposed changes to your tax return.
- Ensure you respond to the notice timely even if you pay online or set up a payment plan.
- The IRS may write off the liability if the debt expires while your account is currently not collectible.
- If you do not respond, the IRS will send out letter 3219A Notice of Deficiency.
- However, filing a Form 1040-X amended return is necessary if the CP2000 notice is correct and you want to report additional income, expenses, or credits.
- They can do this by utilizing software that can help them quickly scan account transcripts for issues.
If you’d like help finding support in dealing with the IRS, Bench can connect you to a certified enrolled agent who can handle the case on your behalf. Just access our what is a cp2000 notice accountant network and ask to be paired with an enrolled agent. If you suspect you might be the victim of identity theft, contact the IRS and your state tax agency.
What to Do if You Agree with the CP2000 Notice
