CP2000 Notice
An IRS notice proposing changes to a tax return based on information returns (W-2s, 1099s) that do not match what the taxpayer reported.
Detailed Explanation
A CP2000 is not an audit but a proposed adjustment from the IRS Automated Underreporter (AUR) program. The notice typically includes a 30-day window to respond, agreeing to the proposed change, providing additional information, or disputing it with documentation. Failure to respond converts the proposal to an assessment via Statutory Notice of Deficiency (CP3219A), after which the only path is US Tax Court. Many CP2000 notices are wrong (basis errors on stock sales, RSU double-counting, unreported W-2 already on the return), and a written response with documentation often resolves the issue at no cost.
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Learn about IRS & State Tax ResolutionRelated Terms
IRS Audit
A formal examination by the Internal Revenue Service of a taxpayer's records to verify that income, deductions, and credits were reported correctly.
Penalty Abatement
IRS forgiveness of failure-to-file, failure-to-pay, or accuracy-related penalties under specific qualifying circumstances.
IRS Installment Agreement
A formal payment plan with the IRS that allows taxpayers to pay tax debt over time, monthly, instead of in a single lump sum.
Innocent Spouse Relief
An IRS provision that releases a spouse from joint and several liability for tax, interest, and penalties on a joint return when their spouse improperly reported items.
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