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IRS notices

IRS CP2000 notice

An IRS CP2000 notice says income or payment data from third parties does not match a tax return, and it proposes changes to the tax.

A CP2000 is a mismatch notice. The IRS compares what employers, banks and other payers reported with what you put on your return. When they differ, it sends a CP2000 that explains the proposed change. It is not a bill, but it usually needs a response by the date shown.

The cause may be a missing Form 1099-NEC, a wrong cost basis on a stock sale, or a plain mistake by the payer. Read the notice, compare it with your records, and answer by the deadline. Unpaid amounts can lead to penalty abatement questions later. The IRS problems page explains the next steps.

Wallace CPA can helpIRS problem resolution

Related terms

Sources

  1. IRS: Understanding your CP2000 series notice

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