Short Answer
A CP2000 means the income or payment information the IRS got from third parties, such as employers or financial institutions, doesn’t match what you reported on your tax return. That difference may increase your tax, decrease it, or not change it at all. A CP2000 isn’t a bill, but your response may be required, and the IRS asks you to reply by the date listed on the notice.
Why the IRS Sent You a CP2000
The IRS compares your return to the forms that employers, banks, and other payers send in. When those numbers don’t line up, it sends a notice from the CP2000 series. The series includes CP2000, CP2000A, CP2000B, CP2000C, CP2000D, and CP2000E.
The notice explains the proposed changes to your tax return and the information the IRS used to determine them.
What a CP2000 Is Not
- It is not a bill. The IRS says so on its own explanation of the notice. A bill can come later if the issue isn’t resolved.
- It is not a Notice of Deficiency. That is a separate, later notice that the IRS sends by certified mail and that carries your right to go to Tax Court. See how the IRS Notice of Deficiency works.
How to Respond to a CP2000
- If you agree. If the notice is right and you have no other income, credits, or expenses to report, follow the instructions on the notice.
- If you disagree. If a response form came with the notice, complete it, sign it, say whether you agree or disagree, and include documents that support your position.
- How to send it. The IRS offers upload, fax, or mail. Use the exact instructions printed on your notice, since the details are specific to your case.
- If you need more time. You can ask for more time to respond. If you can’t meet the deadline, call the number on the notice to talk through the issues or request additional time. More time is not guaranteed, so ask early.
Do You Need an Amended Return?
Usually not. If you agree with the notice and have nothing else to report, you don’t need to amend. The IRS says that in most cases there’s no need to file an amended return when it reviews a return by mail.
The exception is when the notice is correct and you also have other income, credits, or expenses to report. Then you complete Form 1040-X, write “CP2000” on the top, and send it with the notice response form.
One more step people miss: check your returns from prior years. If they have the same issue, the IRS says to file an amended return for those years too.
What Happens If You Ignore a CP2000
If you don’t reply, or the IRS can’t resolve the difference, it may send another notice and a bill. If no agreement is reached, or you don’t respond or get more time, the IRS will send a Statutory Notice of Deficiency by certified mail. See how the Notice of Deficiency works for what that notice means and the time limits it sets.
If You Agree but Can’t Pay
Interest accrues until the balance is paid, and penalties may apply. If you can’t pay in full, the IRS points you to a payment plan or an offer in compromise. See our pages on the IRS installment agreement and the Offer in Compromise.
If the Tax Was Already Assessed
If the IRS already assessed the tax, audit reconsideration is the IRS process for reevaluating that result when the tax remains unpaid, and it needs new information the IRS hasn’t considered. Here is how one CP2000 case worked through an amended return and audit reconsideration, and how our audit defense work handles these cases.
The Bottom Line
A CP2000 is a proposal, not a verdict. The best time to deal with it is before the reply date, while you can still agree, disagree with documents, or ask for more time. If the numbers don’t make sense to you, or more than one year is involved, our team of Enrolled Agents can review the notice against your records and help you answer it. If you got a bill instead, see what a CP14 notice means.
This post is general information only. It is not legal or tax advice for your situation, and IRS procedures can differ from case to case. Talk with a qualified tax professional about your own case.
Common questions
Is a CP2000 a bill?
No. The IRS says a CP2000 isn’t a bill, but your response may be required. It proposes changes based on information from third parties, and the IRS may send a bill later if you don’t reply or the difference isn’t resolved.
Do I have to file an amended return for a CP2000?
Usually not. If you agree and have no other income, credits, or expenses to report, follow the notice instructions. If the notice is correct and you do have other items to report, complete Form 1040-X, write “CP2000” on the top, and send it with the response form.
Can I get more time to respond to a CP2000?
You can ask. The IRS lets you request more time to respond, and if you can’t meet the deadline, you can call the number on the notice to discuss the issues or request additional time. It is not guaranteed, so ask before the date on the notice.
What happens if I ignore a CP2000?
The IRS may send another notice and a bill. If you don’t respond or no agreement is reached, it will send a Statutory Notice of Deficiency by certified mail, which carries its own strict deadlines.
Can a tax professional reply to a CP2000 for me?
Yes. You can authorize someone, such as a tax professional, to contact the IRS for you with Form 2848, or by using the authorization section on the response form.
What if the CP2000 is because of identity theft?
If income on the notice isn’t yours because of identity theft, the IRS asks you to send your reply with a completed Form 14039.
