The IRS compares the information reported by employers, banks, businesses and other payers on forms W-2, 1098, 1099, etc., with income and deductions reported on your income tax return. If you failed to report any income, payments, and/or credits (or if you overstated certain deductions) on an income tax return, you may receive a Notice CP-2000.
The notice informs you of the proposed adjustments to income, payments, credits, or deductions, and the adjusted amount of tax due (or to be refunded to you). The first page of the notice provides a summary of proposed changes to your tax and the steps you should take to understand the notice. If you have any questions, the notice provides a phone number to call for assistance.
The notice will show the adjustments proposed by the IRS, the amounts you reported on your original return, and the amounts reported to the IRS by the payer. The notice will also provide the name of the payer, the payer's ID number, the type of document that was issued (i.e., W-2, 1099), and the social security number of the person to whom the document was issued. Based on the adjustments, the notice proposes either an increase or decrease to your tax liability (or the amount to be refunded to you). Be sure that you review this information carefully to verify its accuracy.
The notice includes a response form on which you should indicate whether you agree with all changes, do not agree with some of the changes, or do not agree with any of the changes the IRS is proposing. On Step C of the response form, you may authorize someone other than yourself to contact the IRS concerning the notice.
If you agree with the proposed adjustments, complete and sign the response form and return it in the enclosed envelope. Notice that the proposed tax listed on the notice may not include any interest and/or penalty that you may owe. You may pay the amount you owe within 30 days from the date of notice, or you may send the signed consent without payment, and the IRS will bill you for the amount due plus additional penalty and/or interest charges. You may request a payment arrangement to pay the amount you owe. If you wish to pay in installments, please complete and sign the “Installment Agreement Request” ( Form 9465 (PDF)) enclosed with the notice and return it with the response form. You will be contacted later with payment information. If your request for an installment agreement is approved, you will be charged a fee. Do not file an amended return ( Form 1040X (PDF)), for the tax year shown in the upper right hand corner of page 1. These are only proposed adjustments and the tax liability is not yet assessed. The IRS will correct this tax year when they receive your response. If the same or other errors occurred in any prior or subsequent years as those listed on the CP-2000, you may wish to file an amended return in order to prevent or reduce the accrual of penalties.
If you do not agree with any changes, or do not agree with some of the changes, in the notice, do not sign the notice. Instead, check Option 2 or 3 on the response form, explain in a signed statement why you do not agree, attach the statement and supporting documentation for consideration to the response form, and submit the response form and attachment to the IRS. Include your phone number with area code and the best time of day to call.
If you do not agree with the changes listed on the CP-2000 notice, do not file an amended return, Form 1040X (PDF), for the tax year listed on the notice. These are only proposed adjustments and the tax liability is not yet assessed.
You must respond within 30 days of the date of the notice or 60 days if you live outside the United States. An envelope will be enclosed for your convenience. If you have lost the envelope, please send your response to the address listed in the upper left hand corner on page 1 of the notice. Send your response, a copy of the notice you received, and any other necessary documents (e.g., a signed statement of disagreement and supporting documents) to the address on the notice.
If we do not hear from you within the 30 or 60 day period, and there is a proposed balance due, a statutory notice of deficiency will be issued and additional interest will be charged.
Page Last Reviewed or Updated: January 14, 2013