IRS Notice CP2000: What It Means and What You Should Do Next
Opening a letter from the IRS is never a comfortable experience, especially when the notice number looks unfamiliar. One of the most common letters taxpayers receive is IRS Notice CP2000. While it can sound alarming at first, this notice is not an audit and does not automatically mean you did something wrong. In most cases, it simply means the IRS found a difference between the income reported on your tax return and the information it received from third parties such as employers, banks, or investment firms. Understanding what this notice means and responding correctly can help you avoid unnecessary penalties, interest, and stress. An IRS Notice CP2000 is generated by the IRS Automated Underreporter program. This system compares your tax return with income documents like W-2s, 1099s, and brokerage statements submitted by employers and financial institutions. When the numbers don’t match, the IRS sends a CP2000 letter proposing changes to your tax return. These changes may show add...