IRS CP2000 Notice [Best Guide] Understand your CP2000 Notice & how to respond to the IRS

Understand your IRS CP2000 Notice that the IRS sent to you by mail. The IRS letter is scary, since they detail proposed tax changes to your account on the IRS CP2000 Letter. I am covering the Cp2000 Letter from the IRS which includes why you received the CP2000 Notice and the best way to respond to the IRS Cp2000 letter from the IRS.

The best way to resolve & & fix your IRS tax debt is to take action, especially when you get an IRS automated under-reporting notice or IRS CP2000 Notice.

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Why did I get an IRS CP2000 Notice in the mail?

This IRS CP2000 letter is sent by the IRS, and targets one specific tax year. The specific tax year os for a tax return you have already filed.

The IRS CP2000 includes some kind of income or payment information reported by a 3rd party that your original tax return did not have reported or disclosed

The procedure does mimic an IRS audit, however, the AUR procedure is not an Audit.

The IRS CP2000 Notice is also called the Automated Under-Reported Notice or AUR for short. The CP2000 is auto-generated by the IRS computers to automatically add the income which is being reported.

The type of change the IRS CP2000 or AUR is scary, to see the IRS additions of Income Tax, Interest & Penalties.

What can you do? Well if do nothing, then the IRS finalizes the changes, & the IRS sends you to IRS ACS collections.

However, you have several options to respond back, which can save you significant money, even if the additional income is taxable income.

What if the income in the IRS CP2000 is taxable income? The adjustments for the income tax are correct, however, the stiff penalties can be abated or forgiven. In order for the penalties to be forgiven, you can review the total circumstances of the omitted income, such as a mistake, or an incompetent tax preparer.

What if I Do not owe the additional tax? An appropriate response should be well explained and submitted to the IRS CP2000 or AUR department that is handling this procedure.