IRS notice CP2000
CP2000 notice: what it means and how to respond
A CP2000 means the income or payment information the IRS received from employers, banks and other third parties does not match what you reported. It proposes changes to your return, which may raise your tax, lower it or leave it the same. It is not a bill, but it usually needs a reply by the date on the notice.
Why you got it
The IRS matches every return against the information returns filed about you: Forms W-2, 1099, 1098 and the rest. When they differ, the CP2000 explains the proposed changes and the figures the IRS used. The series has six versions, CP2000 and CP2000A through CP2000E, and they work the same way.
It often arrives long after you filed. The IRS says the matching of returns against what employers, banks and businesses report takes several months to complete.
How to reply
Read the whole notice, then reply by the date on it. If it includes a response form, fill it in, sign it, and say whether you agree or disagree, attaching documents that support you. If there is no response form, follow the notice’s instructions.
If you agree with the changes and have nothing else to report, follow the notice’s instructions; you do not need to amend your return. If you agree but have other income, credits or expenses to report, complete Form 1040-X, write “CP2000” at the top, and send it with your response form.
You can reply three ways: upload it with the IRS document upload tool, which the IRS calls the fastest; fax it to the number for the IRS center shown at the top left of the notice; or mail it to the address in the top left corner of the first page.
- Need more time? Send an extension request using one of the reply options.
- Someone used your name and SSN? Send your reply with a completed Form 14039, Identity Theft Affidavit.
- Want someone else to talk to the IRS about it? The response form has an authorization section for this notice.
If the information the IRS has is wrong
The CP2000 is built on what others reported, and that can be wrong: a 1099 for the wrong amount, a payment counted twice, income that is not taxable. Say so in your reply, with whatever supports it. The IRS’s guidance for the formal follow-up notice adds the obvious step: contact the business or person who filed the form, ask for a corrected form or a statement explaining the error, and send it in.
What happens if you do nothing
If you do not reply, or the IRS cannot resolve the difference, it may send another notice and a bill. For underreported income the next formal step can be a CP3219A, a statutory notice of deficiency, which gives you 90 days to agree or petition the U.S. Tax Court, and that window cannot be extended.
If you do owe more, interest accrues until the balance is paid and penalties may apply, so paying once you agree stops it growing. If you cannot pay in full, the IRS offers payment plans and, in some cases, an offer in compromise.
Check your other years too. If the same income was left off a prior-year return, the IRS suggests filing an amended return for that year as well.
Want a second pair of eyes on it?
USTAXX can check the notice against the return it refers to. Where the answer is a return — an amended return, a missing year, a corrected form — we prepare it, and you sign and send your own reply. We are an IRS Authorized e-file provider and work with clients remotely through a secure portal, by phone or video, and in person at our office in Naperville, IL.
Questions people ask
Is a CP2000 an audit?
The IRS describes the CP2000 process as a tax return review by mail, set out in Publication 5181. It compares your return with what others reported and proposes changes; it is not a bill, though it may need a reply.
Do I need to file an amended return for a CP2000?
Not if you agree and have nothing else to report; follow the notice’s instructions. Only if you also have other income, credits or expenses to report do you file Form 1040-X, marked “CP2000”, with your response form.
How long do I have to respond to a CP2000?
Until the date printed on the notice. If you need longer, send an extension request using one of the reply options, and do it before that date.
What if I disagree with the CP2000?
Say so on the response form, explain why, and attach documents that support your figures. If a form the IRS relied on is wrong, ask whoever issued it for a corrected copy or a statement.
What happens if I ignore a CP2000?
The IRS may send another notice and a bill, and for underreported income that can be a statutory notice of deficiency, the CP3219A, with a 90-day deadline that cannot be extended.
Where these rules come from
- IRS: Understanding your CP2000 series notice
- IRS: Understanding your CP3219A notice
- IRS: Publication 5181, Tax Return Reviews by Mail
- IRS: Notice 746, Information About Your Notice, Penalty and Interest
General information, current when written, not advice about your situation. Fees and forms change; the official pages above are the authority.