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CP2000 notice: what it means and what to do

Got an IRS CP2000 notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.

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This page covers: CP2000 notice, CP2000A notice, CP2000B notice, CP2000C notice, CP2000D notice, CP2000E notice.

What the IRS says this notice is about

The CP2000 notice series includes: CP2000, CP2000A, CP2000B, CP2000C, CP2000D and CP2000E. Learn what your notice is about and what to do.

The income or payment information we received from third parties, such as employers or financial institutions, doesn't match what you reported on your tax return. This difference may increase or decrease your tax or may not change it at all.

The notice explains proposed changes to your tax return and information we used to determine them. This notice isn’t a bill and your response may be required.

What you need to do

Review the entire notice and follow the instructions to resolve this issue.

Reply to the notice by the date listed.

Your deadline

Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.

What to check before you answer

Stock, fund or crypto sales: check your cost basis

You owe tax on the gain, the sale price minus what you paid, not on the full sale price. If the notice counts the full sale price as income, send your broker statements that show what you paid. This often lowers the amount a lot.

Payment app income (Form 1099-K): check personal payments

Money from friends and family, reimbursements, and personal items sold for less than you paid are not taxable income. If the notice counts them, list them and send your records.

Retirement distribution (Form 1099-R): was it rolled over?

Money moved into another retirement account within 60 days is generally not taxable. If that is your case, send the statement that shows it.

Self-employment income (Form 1099-NEC or 1099-MISC): count your expenses

If this was business income, your business expenses lower the taxable amount. Send a Schedule C with your expenses and keep your receipts.

State tax refund (Form 1099-G)

A state tax refund is generally taxable only if you itemized deductions the year before. If you took the standard deduction, say so in your answer.

You can agree with some items and not others

The response form lets you agree with part of the changes. Explain each item you disagree with and attach a document for each one.

Is this letter really from the IRS?

The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.

How to reply

Upload

This is the fastest way to send us your reply, digitally and securely.

You can upload photos or scans as JPG, PNG or PDF files.

Enter access code 895ny-k9654

IRS document upload tool

Fax

Fax your response to the location listed on the top left side of the notice:

Protect your information: If you use an online fax service, understand its privacy and security policies.

Mail

Send it to the address on the top left corner of the first page of the notice.

You may want to

Check and correct your records

Pay or settle any tax due

Amend your return

If the CP2000 notice is correct and you have other income, credits or expenses to report:

Get my response letter for CP2000 notice

Related notices

Source

  1. IRS: Understanding your CP2000 series notice