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IRS notice CP2000

IRS Notice CP2000: proposed changes because income did not match

By The Latchkey Daily Team, EditorsPublished Updated

A CP2000 is not a bill; it is a proposal to change your return because income reported to the IRS by employers, banks or brokers does not match what you filed.

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What to do this week

  1. Compare the IRS's list of reported income to your records; the mismatch is often a 1099 you forgot or a stock sale where the cost basis was not reported.
  2. If the IRS is right, sign the response form and pay or set up a plan.
  3. If it is wrong or partly wrong, respond in writing with documents (for example, the cost basis of shares sold) before the deadline.
  4. Do not file an amended return in response; use the CP2000 response process.

The notice number is printed in the top right corner of the letter. Match it before doing anything else; scammers mail fake IRS letters, and a real one can be confirmed at irs.gov/account, where the same balance will appear.

When to get help

  • The proposed amount is large and involves stock, crypto or business income.
  • You cannot reconstruct the records.
  • A CP3219A has already arrived.

Questions people ask

What does IRS CP2000 mean?
A CP2000 is not a bill; it is a proposal to change your return because income reported to the IRS by employers, banks or brokers does not match what you filed.
What is the deadline on CP2000?
Respond by the date on the notice, usually 30 days, agreeing, partly agreeing or disagreeing with documentation.
What happens if I ignore CP2000?
The IRS assesses the proposed tax, penalties and interest and sends a statutory notice of deficiency (CP3219A), after which your options narrow to Tax Court.

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