IRS CP2000 Audit Response Help

What a CP2000 Notice Means

A CP2000 notice is an IRS automated underreporter inquiry. It indicates that information reported to the IRS by third parties (employers, banks, brokerages) does not match what you reported on your tax return.

The CP2000 is not a bill. It is a proposed adjustment. You have the right to respond and provide documentation showing the discrepancy is incorrect or has already been accounted for.

Why You Received a CP2000

Common reasons include:

• Unreported income from a W-2, 1099, or Form K-1
• Mismatched Social Security or identification numbers
• Income reported on the wrong line of your return
• Incorrect characterization of income type
• Third-party reporting errors by employers or financial institutions

Most CP2000 notices result from clerical errors or misunderstandings, not intentional misreporting.

What NOT to Do with a CP2000

• Do not ignore the notice and miss the 30-day response deadline
• Do not agree to the proposed changes without reviewing your records
• Do not pay the proposed amount if you believe it is incorrect
• Do not respond without addressing each discrepancy listed
• Do not submit incomplete or vague explanations

What to Do Next

Review the CP2000 line by line. Compare the amounts listed to your tax return and your records. If the IRS is correct, you may agree and pay the amount shown. If the IRS is incorrect, respond with a clear written explanation and supporting documents (corrected 1099s, account statements, or proof of already-reported income).

Include the response form from the notice and respond within 30 days to avoid automatic assessment.

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