What is IRS Notice CP2000?
We have noticed a significant increase as of late in the number of Atlanta taxpayers receiving IRS Notice CP2000 in the mail. This notice provides detailed information about issues that the IRS identified in their computerized review of a tax return. The IRS sends this notice when information from a third party source (such as a 1099 or W-2) does not match the information the taxpayer reported on their tax return.
The notice also provides steps that taxpayers can and should take in order to resolve those issues. Here are 6 things that will help you better understand the importance of receiving an IRS Notice CP2000 and what you should do.
1. As we have already touched on, the IRS sends a notice to the taxpayer when a tax return’s information does not match the data reported to the IRS by third parties, such as banks, vendors or employers.
2. This notice is not a formal audit notification. It is simply a notice to see if the taxpayer agrees or disagrees with the proposed changes.
3. Taxpayers should always respond to the notice CP2000. Usually, the taxpayer has 30-days from the date printed on the notice to respond.
4. The IRS provides a phone number on each notice that they send out. IRS telephone assistors can explain the notice and what taxpayers need to do to resolve any issues.
5. The IRS will send a follow up notice to taxpayers who do not respond to Notice CP2000, or if the IRS does not accept the additional information provided. This second notice is called a Statutory Notice of Deficiency.
6. The Statutory Notice of Deficiency provides detailed information about why the IRS proposes a tax change and how the IRS determined the change. The notice tells the taxpayers about their right to challenge the decision in Tax Court if they choose to do so. It is critical to respond to this notice within the required time period, in order to preserve legal rights.
Massey and Company CPA represents taxpayers who receive IRS Notices. To learn more, give us a call at 678-235-5460, or email us at firstname.lastname@example.org. You can also contact us through our website by visiting the home page.
Massey and Company is a boutique, Atlanta-based CPA firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits.
Gary Massey, CPA
Massey and Company CPA
3550 Lenox Road NE, Suite 2100,
Atlanta, GA 30326