The IRS sends CP2000 notices to taxpayers because items on their tax return do not match information from employers, banks, or other third parties.
If you received a CP2000 from the IRS, you should know that the IRS has conflicting information from your tax return (Form 1040). While the CP2000 notice is not a formal review notification, the IRS is advising you that something on your return does not match information provided by certain third parties (e.g. W-2 or 1099). For example, you may have worked as a contractor and received a Form 1099 for $ 31,000, but you reported $ 21,000. The mismatch could result in a CP2000 being issued asking you to explain the mismatch.
The Columbus, Ohio tax attorney at Porter Law Office, LLC can assist you in front of the IRS upon receipt of a CP2000 notice. Many taxpayers who receive a CP2000 may not know what to do next. This article explains some general reaction procedures and techniques.
If you have any questions, contact the Columbus, Ohio tax attorney at Porter Law Office, LLC today to discuss your case.
What is a CP2000 Notice?
The CP2000 is a notice sent by the IRS that provides detailed information about issues identified on your federal income tax return and steps taxpayers should take to resolve those issues.
The notice asks that the taxpayer agree or disagree with the tax changes proposed by the IRS. You should always respond to a CP2000 message. Don't ignore it. If you can't answer or don't know how to respond, either contact the IRS at the toll-free number in the notice or contact a skilled tax attorney to review your options.
For more information, see the IRS article "Understanding Your CP2000 Notice" at IRS.gov.
What do I have to do?
The first thing to do is understand which item (or items) is causing the mismatch. Once you have identified the matter in dispute, you will need to collect all relevant documents to support your position.
You should get proof of wages and earnings from the IRS. When you receive this information, you can determine how to respond to the notice.
How should I answer?
First of all, you should always reply to the message, even if you agree. If you agree to the changes, check the box on the CP2000 that says you agree and send it back to the IRS. If you can pay the additional tax amount, you will be asked to send full payment with your reply. If you can't pay in full, you can apply to have an installment payment arrangement set up with the IRS. If you have any questions about the various collection alternatives, contact Porter Law Office, LLC.
If you do not agree with the proposed changes, you will need to provide relevant evidence to support your case. The best practice is to submit a detailed statement of your position with valid supporting documents. If the problems are complex, you can schedule a meeting with an experienced tax attorney to best structure your response.
Contact Porter Law Office, LLC to structure your CP2000 response.
If you do not respond within the timeframe set by the IRS, or if the IRS does not accept your filing, you will receive another notification known as a legal notice of defects (or a “90 day letter” or “ticket to the tax court”). referred to as CP3219A. This notice contains the position of the IRS as to why your documentation was not acceptable. There will also be instructions on how to appeal the decision in the U.S. Treasury Court. For more information, see the IRS at About Your CP3219A Notice at IRS.gov.
Contact an experienced Ohio tax attorney
IRS CP2000 representation | Columbus tax attorney
Porter Law Office, LLC provides IRS examination representation for individuals and businesses. Preparation is the key to an efficient and successful solution to a tax audit. Columbus tax attorney Matthew R. Porter, Esq. LL.M. uses an advanced degree in taxes to guide taxpayers through the complicated procedures of the IRS audit process. Porter Law Office, LLC will review your case and implement a plan to resolve your tax audit before an IRS financial agent. Contact the Columbus, Ohio tax attorney at Porter Law Office, LLC today for a consultation to discuss your case.