Content
Written comments should be received on or before November 27, 2023 to be assured of consideration. Once you have filled in the required fields below you can preview and/or submit your comment to the Treasury Department for review. All comments are considered public and will be posted online once the Treasury Department has reviewed them. Consider the Denver Tax
Software IRS Interest & Penalty Calculator. But, to show the IRS that you don’t owe, you must respond effectively. We endeavor to ensure that the information on this site is current and accurate but you should confirm any information with the product or
service provider and read the information they can provide.
The IRS recommends that you respond to the CP2000 notification within 30 days of the notification date for early resolution (or 60 days if the taxpayer resides outside the United States). If the IRS does not get a response by the response date, it can send a Statutory Notice of Deficiency. The difference may relate to an administrative or accounting error, a forgotten source of income, or a person who misinformed the taxpayer by mistake or fraud. For example, an employer may have made a mistake entering an employee’s social security number, or someone may be using someone else’s social security number.
Prevent future underreporting and resulting penalties.
If you qualify for our assistance, which is always free, we will do everything possible to help you. Visit our website for information about online payment options, including pre-assessed installment and payment agreements, payroll deductions, credit card payments, direct debit payments and applicable fees. If you agree to the tax assessment on your notice, you can send a payment right away, before the IRS has officially assessed the tax. This limits the penalties and interest you’ll pay on the balance.
- Letter CP 2000 is sent to notify you that one or more items on your return don’t match what was reported to the IRS by third parties (e.g., employers or financial institutions).
- You may pay the proposed amount or, if you return the Response form without payment, you can wait until the IRS adjusts your account and sends you a bill.
- It can propose
additional tax you owe IRS, or it may show a refund due to you. - In some cases, this difference may result in an underpayment and in others an overpayment.
- Discuss your options with your tax attorney after receiving a CP2000 IRS notice.
This may be due to a discrepancy in the amount of income reported, an unreported source of income, or other differences between the taxpayer’s return and IRS records. Instead of just a notice that says I have a discrepancy in income reported, I received a notice that says I’m under audit. If you get a notice that your federal tax return is being audited, see Audits by Mail or Audits in Person for more information on what to do. If you receive a notice that your income was underreported or overreported, it could affect your tax return. It may cause an increase or decrease in your tax liability or may not change it at all. Letter CP 2000 will show any amounts reported to the IRS by third parties that don’t match the amounts shown on your return.
Where can I get additional help?
That way, the IRS won’t process this return if it gets separated from the other response documents. Because the IRS processes more than 20 million pieces of post-filing correspondence annually, it’s important to send in one organized response. Include a copy of the CP2000 notice and check whether you agree or disagree with the notice. Sometimes, taxpayers receive this letter prematurely (for example, before the IRS considers their response to the original CP2000 notice).
- An amended tax return would be appropriate in more complex situations where the IRS is partially correct but you have a valid way to offset all or part of the amount owed.
- Complete the form on page seven of your Letter CP 2000 to show whether you agree or disagree with the changes the IRS is proposing in the letter.
- If your tax liability increases and you now owe money, it is to your benefit to pay the balance as soon as possible, because the IRS charges interest until you pay the balance in full.
- The IRS is looking for errors and missing income when it compares the information returns to the filed tax returns.
- Remember that when someone sends you a tax form, it doesn’t just go to you.
At Jackson Hewitt, we have 40 years of expertise to help you manage your tax issues. Whether simple or complex, our team of licensed professionals are trained to work directly with the IRS, while keeping you updated every step of the way. Start for free today cp2000 notice underreported income notice and learn about how we can help resolve your tax issues. Ensure you respond to the notice timely even if you pay online or set up a payment plan. You can complete and send Form 14039, Identity Theft AffidavitPDF, along with the completed response form.