IRS Letter CP2000 – What Is It? How Do You Deal With It?

IRS mail can be scary.  Now, think of our clients knowing they owe money, they simply tend to delay opening the mail. Or, bury it somewhere in their desk, briefcase, or in the backyard. Gut wrenching.

 The IRS Notice CP2000 is simply a proposed change to your tax return.  Proposed, meaning it is not final.  However, the IRS notice looks like a collection notice. Very intimidating.

 The CP2000 notice can be confusing.  A few things to think about:

– The amount due is PROPOSED!!! DO NOT PAY IT until you fully understand the accuracy of the notice

– The amount due can be agreed to, partially agreed to, or 100% challenged

– The IRS collects MILLIONS OF DOLLARS every year from taxpayers who may not owe the entirety of the proposed change

In other words, if you receive a CP2000 notice from the IRS take note of the date.  You will have 30 days to agree, partially agree, or challenge the notice you received. If you have questions on the notice do not hesitate to contact the IRS to ask questions.  Have a full copy of the notice, a full copy of the tax return for the year the IRS is proposing the change, and have any and all documentation relative to preparing the return in hand. Remember, the amount can be challenged and even completely reversed. The most recent CP2000 notice I worked on the IRS was proposing a $22,000 balance due. The taxpayer ended up getting a refund when it was all said and done.

Seek out advice from Highland Tax Group, Inc. concerning your IRS tax notice! We can be reached at 720-398-6088 or at