Today’s Topic: CP 2000
Q: What is the CP 2000?
Tax Tiger: It is a notice sent out by the IRS when they suspect that a taxpayer has understated or overstated their income. The notice is not a change to the taxpayer’s original submission.
Q: How does the IRS determine if there are discrepancies on my tax return?
Tax Tiger: IRS staff compares returns to information submitted by employers, banks, and other sources.
Q: Is Notice CP 2000 a bill?
Tax Tiger: The form is not a bill and no payment is due as of the original notice. However, it’s vital to review information on the form and respond within the allotted time window to determine if the IRS has miscalculated your income or deductions.
Q: Why does it take 12 months or longer to receive a CP 2000?
Tax Tiger: The IRS does not receive all of the information necessary to properly review tax returns until several months after the end of the year. Once all taxpayers, businesses and other reporting institutions submit their information, there is still work to do. IRS staff must compile the data and review it before sending the notices.
Q: What should I do about the notice?
Tax Tiger: The information must be reviewed immediately. You will need to determine if the column marked “Proposed by the IRS” is correct or if the income in question was reported together with other income elsewhere on the tax return.
Q: Can I contact the IRS by telephone?
Tax Tiger: Yes, there are two telephone numbers available. Taxpayers whose CP 2000 originated Ogden, Brookhaven, or Philadelphia should call 800.829.8310; otherwise contact 800.829.3009.
Q: What information can IRS representatives take over the phone?
Tax Tiger: If the CP 2000 is incorrect due to the income having already been stated, the representative can take this information. If other issues are apparent, written communication is best.
Q: I need more time to collect supporting data. Will the IRS grant a time extension to respond?
Tax Tiger: Yes an extension of 30 days may be requested by calling the number on the top of the notice.
Q: Will the IRS remove any interest accrued?
Tax Tiger: Section 6601 of the IRS Code states that the Agency must charge interest on all tax that is not paid on time.
Q: How can I avoid receiving this notice in the first place?
Tax Tiger: Keep proper records and perform a detailed review of your tax return to ensure that all information is true and correct before processing.
Q: Where can I get more information?
Tax Tiger: The IRS provides a toll-free automatic line. Call 800.829.4477 and enter 652 as the topic number.
For more information about Tax Tiger, please visit their website at www.tax-tiger.com or call 866.667.3829