30 Oct How To Tackle An IRS Notice CP 2000
When would a taxpayer receive an IRS notice CP 2000? This type of letter would be received in the following instance:
Data reported to the IRS (i.e., 1098’s, 1099s, or W-2s) by third parties such as investment brokers, banks, employers, etc. doesn’t match up with the information on an individual’s tax return. This letter gives information, in a detailed breakdown, regarding the IRS identified issues. It also outlines the steps that the individual taxpayer needs to execute to make sure that all of the issues are resolved.
What to Do If You Get An IRS Notice CP 2000
The first thing to do if you receive one of these from the IRS is to address, in a timely manner, the issues outlined in the letter. If you do not address these issues in a timely manner, you could suffer penalties, interest, or an assessment of additional taxes.
This is a good time to seek the professional help of a tax attorney or other qualified tax defense representative.
What This Letter Is Not
This letter is simply the IRS’s way of seeing whether or not you disagree or agree with the tax changes that are proposed. It is not notification of a formal audit. The letter has a “respond by” date – do so within 30 days of the date.
Also included on this letter is a telephone number. By calling this number, you will be connected with assisters that can better explain to you what the letter is about and how any discrepancies can be resolved.
What If I Don’t Respond?
Well, in the first place, do respond. If you don’t, however, another letter will be sent by the IRS. This one is referred to as a “Statutory Notice of Deficiency IRS Notice CP3219A”. This letter goes into more detail regarding the problem and explains the taxpayer’s rights.
Okay, I Got An IRS Notice CP 2000 – Now What?
Here are the steps to take if you receive an IRS Notice CP 2000:
- Read over, very carefully, the entire notice because it details any and all data on the information that was received by the IRS and how your tax return was affected by that information.
- Whether you disagree or agree with the notice itself, complete the response because it explains what action you have decided upon. Not all notices include a form for a response. If it is not included, there will be instructions describing what your next move should be.
- If you are in agreement with what’s on the notice, use the envelope provided with which to return the signed response form. If you filed jointly (because you are married) the signature of both spouses is required by the IRS.
- Look at who reported the information and contact that person or business if the information that they gave the IRS is wrong. Have them send a corrected statement to you, after which you send a copy of the correct information to the IRS.
If you have received an IRS notice CP 2000, or if you are going through some other type of IRS related problem, please do not hesitate to call the professionals at Tax Defense Partners. We have assisted thousands of individuals in lessening or eliminating the money they owe the IRS, and we can help you as well. Contact us today to get started on solving your IRS issues.