Receiving an unexpected letter from the IRS can be nerve-wracking, but it’s important to stay calm so you’re able to handle the situation appropriately. One of the most common notices taxpayers get is a CP2000. The following information explains what this is, how it can affect your tax return, and how to respond.

A Guide to CP2000 IRS Notices 

What It Means

A CP2000 notice is a letter the IRS sends out when there’s a discrepancy between the income reported on a tax return and the information they have on file. It’s a computer-generated notification that’s automatically triggered when amounts don’t match.

This isn’t intended to serve as a bill or audit, but instead, it’s meant to alert you to the issue so you can respond. While in some cases you may end up owing the IRS more, in others, you might get a bigger refund or nothing could change at all. 

What You Should Do 

First, read your notice carefully so you understand exactly what the disparity is. Next, gather all the information you used to complete your tax return and compare it to the CP2000 letter. This will help you decide whether or not to appeal the proposed changes.

Make sure you fill out and submit the response form within the allotted timeframe to prevent further fees and penalties. If you disagree with the notice, you’ll need to provide a statement explaining why and attach copies of all relevant documents that support your argument. If you agree, simply sign the form and send in your payment.

Should you get a CP2000 letter in the mail, reach out to PMC Tax Services LLC in Lincoln, NE, for help preparing the proper response. Backed by 30 years of experience, they stay updated on all the latest tax codes and will be able to determine if your notice was sent in error. With their guidance, you’ll have a better chance of proving your case and can rest assured your tax returns will be filed accurately to avoid future problems. Call (402) 467-5529 to schedule a consultation or visit them online to learn more about their services.