HIGH PRIORITY

IRS Notice CP2000

Underreported Income Notice

⏱ Deadline: 60 days to respond

The IRS has information from third parties (employers, banks, brokers) that doesn't match what you reported on your return. They're proposing a change to your tax that would increase what you owe. This is not a bill — it's a proposal.

Common Causes

Your Options

Agree with the Proposed Change

Sign and return the notice with payment or payment plan setup.

Disagree — Submit Documentation

If the IRS is wrong, respond with documentation showing why. Common reasons: the income was already reported, you have offsetting deductions, or the third-party information is incorrect.

Partially Agree

You can agree with some items and dispute others. Respond in writing explaining each item.

⚠️ Do Not Ignore This Notice: If you don't respond within 60 days, the IRS will treat the proposed change as accepted and issue a bill. You'll also lose the right to dispute it at this stage.
💡 Pro Tip: A CP2000 is not a final tax assessment — it's a proposal. Many CP2000 notices can be resolved by showing that the income was already included or by providing documentation of deductions that offset it.

Frequently Asked Questions

What is a CP2000 notice?

A CP2000 means the IRS found a discrepancy between your tax return and information reported by third parties like employers or banks. It proposes additional tax you may owe.

Do I have to pay the amount on a CP2000?

Not necessarily. You have 60 days to agree, disagree, or provide documentation. The CP2000 is a proposal, not a final bill.

How do I respond to a CP2000?

Review the proposed changes carefully. If you agree, sign and return the notice. If you disagree, respond in writing with documentation within 60 days.

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This page provides general information only and does not constitute legal or tax advice. Built by Tyrone J. Taylor, EA — Enrolled Agent, NTPI Fellow.