The IRS is sending CP2000 notices to taxpayers because items from their tax return do not match information from employers, banks, or other third parties.
If you have received a CP2000 from the IRS, then you should know that the IRS has conflicting information from your tax return (Form 1040). While not a formal audit notice, the CP2000 notice is the IRS’s way of telling you that something on your return does not match the information provided by certain third parties (such as W-2 or 1099). For example, you may have worked as a contractor and received a Form 1099 for $31,000 but you reported $21,000. The mismatch may result in the issuance of a CP2000 asking that you explain the discrepancy.
The Columbus, Ohio tax attorney at Porter Law Office, LLC can assist you before the IRS after receiving a CP2000 notice. Many taxpayers who receive a CP2000 may not know what to do next. This article helps explain some general response procedures and techniques.
What is a CP2000 Notice?
The CP2000 is a notice sent by the IRS that gives detailed information about issues that have been identified on your federal income tax return and provides steps taxpayers should take to resolve those issues.
The notice requests that the taxpayer agree or disagree with the proposed tax changes made by the IRS. You should always respond to a CP2000 notice. Do not ignore it. If you cannot respond, or do not know how to respond, either contact the IRS at the toll-free number on the notice, or contact an experienced tax lawyer to review your options.
For additional information, see the IRS’s Understanding Your CP2000 Notice article at IRS.gov.
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What do I need to do?
The first thing to do is understand what item (or items) is causing the mismatch. Once you have identified the item in dispute, you need to gather all relevant documentation to support your position.
You should obtain Wage and Income Transcripts from the IRS. Obtaining this information will help you determine how to respond to the notice.
How should I respond?
First, you should always respond to the notice even if you agree. If you agree to the changes, select the box on the CP2000 that states you agree and return it to the IRS. If can pay the amount of additional tax, then you are encouraged to send full payment with your response. If you cannot pay in full, then you can request to set up an installment agreement with the IRS. If you have questions about the various collection alternatives, contact Porter Law Office, LLC to discuss.
If you disagree with the proposed changes, then you need to prove your case with relevant, probative evidence. The best practice is to submit a detailed explanation of your position with valid evidence in support. If the issues are complex, you may want to schedule a meeting with an experienced tax lawyer to help you best structure your response.
Contact Porter Law Office, LLC to help structure your CP2000 response.
If you fail to respond within the timeframe allotted by the IRS, or if the IRS does not accept your documentation, you will receive another notice called a Statutory Notice of Deficiency (or “90-day letter” or “ticket to Tax Court”) designated as CP3219A. This notice will contain the IRS’s position as to why your documentation was not acceptable. It will also provide instructions for challenging the decision at the U.S. Tax Court. For more information, see the IRS’s Understanding your CP3219A Notice information at IRS.gov.
Contact an Experienced Ohio Tax Attorney
IRS CP2000 Representation | Columbus Tax Lawyer
Porter Law Office, LLC provides IRS audit representation for individuals and businesses. Preparation is the key to obtaining an efficient and successful resolution to a tax audit. Columbus tax attorney Matthew R. Porter, Esq. LL.M. utilizes an advanced degree in taxation to assist taxpayers through the complicated procedures involved in the IRS audit process. Porter Law Office, LLC will review your case and implement a plan to resolve your tax audit before an IRS revenue agent. Contact the Columbus, Ohio tax lawyer at Porter Law Office, LLC today for a consultation to discuss your case.