January, 2021

Responding to a CP2000 Underreported Income Notice from the IRS

By Jackson Law Group
January 15th, 2021

Posted in Tax Law & IRS Defense

When your tax return does not match data reported to the IRS from third parties, a letter called an IRS Notice CP2000 may be sent to you. It is not a formal audit notification, but it can quickly turn into a deficiency notice if not addressed. CP2000 Notices contain:

  • The amounts you reported on your original or processed amended return;
  • The amounts reported to the IRS by the payer or 3rd parties;
  • The payer’s name, ID number, the type of document issued (W-2, 1098, 1099), and the tax identification number of the person to whom the document was issued;
  • The proposed changes to your income, tax, credits, or payments; and
  • A Response form, payment voucher, and an envelope.

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