What Do You Do If You Receive a CP2000 Letter?

What is a CP2000 Letter?

If there is a discrepancy in the income or payment information that the Internal Revenue Service (IRS) has on file, you may receive a CP2000 Notice letter increasing or decreasing your tax, or it may not change at all. https://www.irs.gov/individuals/understanding-your-cp2000-notice

What happens if I ignore the CP2000 notice?

If you decide to ignore the CP2000 notice, the IRS will assess the additional tax, penalties, and interest and then proceed to enforce payment. Ignoring a CP2000 is never a good idea.

How far back can the IRS issue a CP2000?

The IRS can generally assess additional tax three years after the due date of the return or the date the return was filed, whichever is later.

Do I have to pay the CP2000 notice immediately if it is right?

No, you can request a payment plan when you respond to the CP2000.

How do I ask the IRS to remove the penalty on the CP2000 notice?

When you respond to your CP2000 notice letter, you will need to contest the penalty by providing the facts and a reasonable cause argument that states why the penalty should not be assessed against you.

Can I respond to the CP2000 by fax?

Yes, and that is the ideal method if you are close to the 30-day response deadline.  If your response is more than one page, you should number each page so the tax examiner will know if they are looking at your complete response.

Experience Counts When You’re Dealing With The IRS

For over 24 years the Parker Law Firm has saved our clients over $5M in taxes and we are ready to assist you in keeping money in your wallet, too!

Call us now at 770-246-1331 or email us at info@theparkerlawfirm.net.