Take a breath. A CP2000 is not a bill and not an audit. The IRS thinks your return doesn’t match what employers and banks reported, and it’s proposing a change. Here’s the plain-English version.
The IRS runs your return against information returns from employers, banks, and other payers: forms W-2, 1098, and 1099. When something doesn’t match, the Automated Underreporter program issues a CP2000 proposing a change to your income, payments, credits, or deductions. It is a proposal, not a bill. It may mean more tax, or it may mean a refund.
The notice shows what you reported, what the payer reported, and the proposed change. A tax examiner has already reviewed the discrepancy. Your job is to check the numbers against your own records.
What happens next depends on your answer:
| Your answer | What happens |
|---|---|
| Agree | Sign the response form (both spouses, if you filed jointly) and return it by the due date. No amended return needed. Pay, or set up a payment plan. |
| Disagree | Mark “I do not agree,” send a signed statement explaining why, and attach supporting documents. |
| Partly agree | Agree to the items that are right and dispute the rest, with documents. The IRS may send a revised CP2000. |
| Do nothing | The IRS sends a Statutory Notice of Deficiency (CP3219A). Then you have 90 days to petition the Tax Court (150 if you live abroad). After that, the IRS assesses the tax. |
Respond within 30 days of the notice date, or 60 days if you live outside the United States. Interest runs from the return’s due date to 30 days after the notice date, and it keeps running until the amount is paid. Paying the proposed amount within 30 days stops additional interest, and possibly additional penalties, from accruing.
Find the date on your notice. That is when your window started. If you need more time, call the number on the notice before the response date passes.
Send me a photo of your CP2000. Black out everything except the last four digits of your SSN if you like, and book a free call. You’ll leave the call knowing whether the numbers are right and what to send back, whether or not you hire me. Bring the notice and any other IRS letters for the same year.
We return every call within one business hour.
No. It comes from the IRS Automated Underreporter program, which matches information returns against your return by computer. A tax examiner reviews the mismatch, but it is a proposed adjustment, not an examination of your books.
Mark the response form for the parts you disagree with, send a signed statement explaining why, and attach supporting documents. If the IRS accepts your corrections, it may send a revised CP2000.
The IRS sends a Statutory Notice of Deficiency (CP3219A). You then have 90 days to petition the Tax Court, or 150 days if you live outside the United States. After that window, the IRS assesses the proposed tax.
Reviewed by Alex Volkov, NY-licensed CPA, November 2026. Sources: IRS, “Topic No. 652, Notice of Underreported Income, CP2000” (irs.gov/taxtopics/tc652); IRS, “IRS Letter CP2000: Proposed Changes to Your Tax Return” (irs.gov/newsroom/irs-letter-cp2000-proposed-changes-to-your-tax-return-asl-youtube-video-text-script).
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