Taxpayers can get a CP notice if the IRS determines that a taxpayer did not report all income on their return. CPs are not audits. The best way to resolve a CP notice quickly is to respond ontime with a thorough response that addresses all issues, inlcuding penalties. If you want to further speed up the process, you can fax your response to the IRS the fax number will be on the CP notice. If you miss the deadline and the IRS proceeds to assess the taxes, penalties, and interest, you will need to request CP reconsideration.
|Published (Last):||2 July 2016|
|PDF File Size:||14.42 Mb|
|ePub File Size:||4.57 Mb|
|Price:||Free* [*Free Regsitration Required]|
The income or payment information we have on file doesn't match the information you reported on your tax return. This discrepancy may cause an increase or decrease in your tax, or may not change it at all. We received information from a third party such as employers or financial institutions that doesn't match the information you reported on your tax return. No, the notice is a proposal and informs you about the information we have received, and how it affects your tax.
Complete the notice Response form. Follow the notice instructions if your notice doesn't have a Response form. The notice Response form has instructions on what to do if the new information is wrong. You also may want to contact whoever reported the information and ask them to correct it.
You can complete and send to us Form , Identity Theft Affidavit. You can also go to our identity theft information web page to find out more about what you can do. If the information displayed in the CP notice is correct, you do not need to amend your return unless you have additional income, credits or expenses to report.
If you agree with our notice, follow the instructions to sign the Response form and return it to us in the envelope provided. If you have additional income, credits or expenses to report, you may want to complete and submit a Form X, Amended U. Individual Income Tax Return. If you choose to file an amended return, write "CP" on top of your return and attach it behind your completed Response form.
You can request a return transcript on our "Get Transcript" page. You can also get one by calling our automated phone application at or by completing and sending us a Form T, Request for Transcript of Tax Return.
If a transcript won't do, ask for a copy of your return from your tax preparer if you used one. Otherwise, you can get a copy of your return by completing and sending us a Form We charge a fee for tax return copies.
We have centers located throughout the country. Our web site has directions on how to find the center nearest to you. Our computer systems match the information you report on your tax return to information reported by employers, banks, businesses, and others. This matching takes several months to complete. You can set up a payment plan with us if you can't pay the full amount you owe. If you agree and would like to apply for an installment agreement plan by mail, send your signed Response form and a completed Form , Installment Agreement Request , and return it in the envelope provided.
Or you can visit our web site for information about online payment options , including pre-assessed installment and payment agreements, payroll deductions, credit card payments, direct debit payments and applicable fees. Consider filing your taxes electronically.
Filing online can help you avoid mistakes and find credits and deductions you may qualify for. In many cases, you can file for free. Learn more about how to file electronically. More In Help. What this notice is about The income or payment information we have on file doesn't match the information you reported on your tax return. What you need to do Read your notice carefully. It explains the information we received and how it affects your tax return.
Complete the notice Response form whether you agree or disagree with the notice. The response form explains what actions to take. Your specific notice may not have a Response form. In that case, the notice will have instructions on what to do. We require both spouses' signatures if you filed married filing jointly. Contact the business or person reporting the information, if the information they provided to us is wrong. Ask them to send you a corrected statement, then send us a copy.
You may want to Make sure your other returns don't have the same mistake. Contact us with any unanswered questions you have or if you need time to respond to the notice. Keep a copy of the notice for your files. Fill out section 3 Authorization on the Response form to allow someone, in addition to yourself, to contact us about this notice.
Or, send us a Form , Power of Attorney and Declaration of Representative to allow someone such as your tax return preparer to contact us on your behalf. Correct the copy of your tax return that you kept for your records. Order a transcript of your return.
Learn more about your payment options if you owe additional taxes. Learn more about payment plans and installment agreements if you cannot pay the full amount of taxes owed. Learn more about Offers in Compromise if you cannot pay the full amount of taxes owed. Frequently asked questions Why did I receive the notice? Is the notice a bill? What do I need to do? What do I do if the information is wrong or if I disagree?
The information is wrong because someone else is using my name and social security number. What can I do? I reported the information but I reported it incorrectly. Can I call you to correct my return? We can generally accept your information over the phone for incorrectly reported information. Do I need to amend my return? How can I get a copy of my original return?
Why did it take you so long to contact me about this matter? The notice says my taxes will increase. Will I be charged interest on the money I owe? Yes, interest accrues on your unpaid balance until you pay it in full. What happens if I can't pay the full amount I owe?
How can I make a payment plan? Tips for next year You can avoid future problems by: Keeping accurate and full records. Waiting until you get all of your income statements before filing your tax return. Checking the records you get from your employer, mortgage company, bank, or other sources of income W-2s, s, s, etc.
Including all your income on your tax return. Following the instructions on how to report income, expenses and deductions. Filing an amended tax return for any information you receive after you've filed your return. Need Help? See if you qualify for help from a Low Income Taxpayer Clinic.
Page Last Reviewed or Updated: Mar
Two Things You Must Know Before You Check the Box on Your CP2000 Notice
Get the latest info. This notice basically proposes taxes, and possibly penalties, you might owe for missing income on your return. But CP notices are computer-generated and may not be right. You might not owe the full amount — or anything at all. What to do if you get one of these notices? You or your tax pro will need to investigate the issue more and get back to the IRS within a certain amount of time. Start by validating that you owe more taxes.
IRS CP2000 Notice: What to Do if You Receive One
The IRS receives information from third parties, such as employers and financial institutions. Using an automated system, the Automated Underreporter AUR function compares the information reported by third parties to the information reported on your return to identify potential discrepancies. When a potential discrepancy is identified, a tax examiner further reviews the return, comparing the information reported to the IRS by employers, banks, businesses, and other payers on income documents Forms W-2, , , etc. If a discrepancy exists, a Notice CP is issued.
IRS Letter CP2000: Proposed Changes to Your Tax Return - YouTube video text script
Get the latest info. CP notices feel a lot like an audit. There are lots of reasons to look closely at notices from the IRS. But the response form has two shortcomings. So before you respond with a checkmark, you must know these important tips. You may agree with the IRS that you made a mistake on your tax return.