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Firm News: CP2000 Response Results in Zero Tax Owed

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Matthew R. Porter
Principal Attorney
July 6, 2023
Firm News: CP2000 Response Results in Zero Tax Owed

Porter Law Office LLC recently helped a taxpayer achieve a very favorable result. We responded to a CP2000. The IRS approved the response and reduced the proposed tax liability to zero. The IRS proposed an additional tax liability of over $21,000.

A CP2000 is a correspondence audit. If you receive one, you’ve been audited by the IRS. If you disagree with the IRS, you must respond. We routinely help taxpayers respond to these notices. Contact Columbus, Ohio tax attorney Matthew R. Porter, Esq. LL.M. for a free case evaluation to discuss your CP2000 today.

What is a CP2000?

A CP2000 is a notice that the IRS sends to alert you of an examination of your income tax return. The notice states something to this nature:

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.

What if I disagree with the CP2000?

cp2000 response attorney columbus ohio tax lawyer

Experienced CP2000 Response Counsel

If you disagree with the audit, you must respond. If you don’t respond, IRS will assess the tax. An assessment means that you will owe the tax, and the IRS will attempt to collect it from you.

We can help you provide respond to the CP2000 by providing good evidence to support your position. Good evidence is relevant and probative. Probative means that the facts will tend to prove the matter at issue. Relevant means that the evidence must relate to the disputed issue. If you provide relevant, probative evidence, you set yourself up for success.

In this most recent case, the IRS proposed to assess tax on Robinhood transactions dealing in bitcoin. Robinhood provided IRS with a 1099-B, which did not report cost basis. As a result, IRS incorrectly proposed to assess tax based on sales prices without considering the cost. Our office helped the taxpayer obtain evidence of cost basis. We submitted the evidence with a persuasive legal brief. The IRS ultimately agreed with our position and reduced the proposed tax altogether.

Contact an Experienced Ohio Tax Attorney

CP2000 Response Representation | Columbus Tax Lawyer

Porter Law Office, LLC is a boutique law firm that assists taxpayers with resolving tax debts with the IRS. Columbus, Ohio tax attorney Matthew R. Porter, Esq. LL.M. assists taxpayers with resolving disagreements the IRS. If  you received a CP2000, and you disagree, contact the experienced Columbus, Ohio tax lawyer at Porter Law Office, LLC today for a case evaluation.

About the author
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Matthew R. Porter, J.D., LL.M. (Tax)
Principal Attorney · Porter Law Office, LLC · Columbus, Ohio

Matt represents individuals and small businesses in federal and Ohio tax controversies. He holds an LL.M. in Taxation from Capital University Law School and has represented clients before the U.S. Tax Court, the U.S. District Court for the Southern District of Ohio, the Franklin County Board of Revision, and the Ohio Board of Tax Appeals. Rated AV Preeminent by Martindale-Hubbell and Superb 10.0 by Avvo.

This article reflects general information as of publication and is not legal advice. Tax law changes frequently; verify any cited rule against current IRS or Ohio Department of Taxation guidance before acting. For advice on your specific situation, schedule a consultation.

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