Dealing with the aftermath of identity theft can be time-consuming and frustrating, as victims may have to prove their identity and resolve fraudulent activity on their accounts. The IRS will send you a CP2000 notice when they have additional income source information that was not included in your original tax filing. If you choose to file an amended tax return, be sure to include it with your CP2000 response form.
Most likely, the IRS staff wants to https://www.facebook.com/BooksTimeInc/ help you discuss the changes proposed in the notice. If you’re still not satisfied with the resolutions offered by the examiner, you can ask to speak to the manager. If you’re not satisfied with the resolutions offered by the manager, you can file a petition with the U.S. Remember that at this point, any further proceedings on your tax reports or changes will be determined by the Court.
Determine if you agree or disagree with the proposed changes and how you should respond. On the Response form, indicate whether you agree or disagree with all, some, or none of the proposed changes. If you would like to authorize someone other than yourself to contact the IRS concerning the notice, include the information requested in the Authorization section of the Response form. The notice explains proposed changes to your tax return and information we used to determine them. If no response is submitted, the IRS will proceed to issue a Statutory Notice of Deficiency and a bill.
If you disagree with AUR changes, however, you will need documentation to support your dispute of the proposed changes to your tax return. Sometimes a CP2000 notice simply informs a taxpayer when the tax ID they provided does not match the ID found on third-party documents sent to the IRS. In this situation, there would not necessarily be changes to income, taxes, or refunds. One example of why a taxpayer receives a CP2000 after an AUR review is underreporting income. Employers must send copies of all employee W-2s, 1099s, or 1098s to the IRS so they know how much income an employee earned for a given tax year. If you want to contest the proposed changes, complete and return the response form indicating that you disagree.
In that case, you may want to seek help from an enrolled agent at a tax resolution company. These tax resolution specialists can help with any aspect of your taxes, including representing you before the IRS. Keep in mind that the IRS can only accept additional information and correct a mistake over the phone if the mistake doesn’t increase or decrease your tax total. Sign the letter and send it back to the IRS, which will send you an updated tax bill. If you don’t respond to the CP2000 notice and don’t file a petition with the Tax Court within the 90-day period, the IRS is free to assess tax and penalize you for negligence. After you’ve evaluated the information, you can choose from the following steps to respond to the IRS.
The IRS states that these cases are identified within all four phases of AUR and are considered priority work every day. You can disagree with some or all of the changes proposed by the IRS CP2000 notice. Fraudulent CP2000s sent out by scammers impersonating the IRS have become more common in recent years. Sometimes referred to as “phishing” scams, these are usually sent over email and include a fake CP2000 attachment. If it turns out they sent the IRS the wrong information, ask them for a corrected document or a statement to support why it is in error, then send the IRS a copy with your response. Engaging with the IRS can be a daunting task for most of us, so it makes sense if this option feels a little overwhelming.
The IRS website recommends writing “CP2000” at the top of your return and attaching it behind your completed response. If you agree with the tax changes specified in the CP2000 notice, sign and return the response form by mail before the due date specified https://www.bookstime.com/articles/post-closing-trial-balance by the IRS. CP2000 is an IRS notice generated by an Automated Under-Reporter (AUR) Control System.
If you want to talk to an IRS agent about your CP2000, call the phone number listed in the top right-hand corner of the letter. This guide from the IRS aur control number will help you gain insights on what to do when you receive a CP2000 notice. The following will explain in detail what CP2000 notice could mean, ways to handle it, and the best ways to address such communications. Ignoring your CP2000 notice could bring you penalties and worse, audits from the IRS.
Get in touch with our team here at Silver Tax Group in Farmington Hills, MI for a free initial consultation. The penalty for a substantial understatement is 20% of the total amount of tax that has been underpaid. Interest will apply and continue to accrue until the balance is settled in full. The standard penalty for negligence or disregard is 20% of the total amount of tax that was underpaid due to the disregard or negligence. Interest will accrue on the penalties due and will continue until all taxes and penalties have been paid in full.
