You got through the rush and anxiety of tax season. Just as you are finally starting to settle back into the groove of your normal life, you get an IRS Notice you certainly didn't expect. You could have sworn that you filed correctly and paid the right amount, but this notice states that you still owe the IRS. This page will help you understand why you received the CP-2000 and what to do about it.
What Is a CP-2000?First of all, a CP-2000 is not a bill. You are not automatically required to write a check. This is simply a notice that the IRS sends when the information they have on file for your income, credits, and deductions is different from what you put on your tax return. A CP-2000 asks that you review what you filed and determine if it is all correct. You have the option to agree, partially agree, or disagree with the information the IRS has on file for you.
What to Do if You Disagree with Your CP-2000If you disagree with the changes the IRS wants to make to your tax return, you need to respond to the CP-2000 by the response date on your notice. Otherwise, the IRS assumes that you agree with the changes. Check the box that states that you disagree or partially agree, and prepare a protest.
To protest tax debts under $25,000 you have the option to make a small case request. To do this, you need to send a letter requesting Appeals consideration and indicate the changes on the CP-2000 you disagree with and what your reasons are. Be ready to back this up with documentation.
Protesting higher tax debts, cases that involve an employee plan or exempt organization, and business-related debts require a formal written protest. Provide all of your contact information, a statement that you want to appeal the IRS findings, a copy of your CP-2000, the tax periods you are protesting, and a list of the changes you disagree with. You will also need to explain why you disagree and have the proof to back up your claims.
You may have to go to tax court to appeal changes on a CP-2000. You have the option to represent yourself, but it is not recommended. You can't hire just any tax debt professional to represent you, however. You will need the help of a tax attorney or enrolled agent.
What to Do if You Agree with Your CP-2000If you agree, check the box that indicates that and send it back to the IRS with a check in the amount of what is due on the notice. If you are not able to pay your debt in full, you still need to send back the CP-2000 response with the box checked indicating you agree. There are a number of tax programs that can help you lower your tax debt or take you out of the collections process. A more common and successful solution is entering into an installment agreement. If you do nothing about your tax debt, you will be subject levies, liens, and seizures. To make sure you are placed into the best possible situation regarding your tax debt, you should contact a tax professional.
Do you need help with your CP-2000 notice? Consult a professional. Call now or fill out the form below for a free tax debt consultation to either appeal your CP-2000 or take care of your debt! We'll only connect you with a tax debt relief company holding at least a B rating with the Better Business Bureau.