Receiving a CP2000 notice from the IRS can be unsettling. This notice indicates the IRS believes there’s a discrepancy between the income you reported and what was reported to them by third parties (like employers or banks). Ignoring it isn’t an option; you *must* respond, even if you believe the notice is incorrect. A well-crafted response can resolve the issue quickly and avoid potential penalties and further scrutiny.
Your response to a CP2000 notice needs to be clear, concise, and well-documented. It should directly address each item in the notice, explaining why you agree or disagree with the IRS’s findings. If you agree, enclose a payment for the additional tax, penalties, and interest. If you disagree, provide supporting documentation to substantiate your claim. This documentation is crucial for a successful resolution. Ensure you keep copies of everything you send to the IRS for your records. Also, consider sending your response via certified mail with return receipt requested to ensure the IRS receives it.
Below are sample letters that you can adapt to fit your specific situation. Remember to replace the bracketed information (e.g., [Your Name], [Notice Date]) with your actual details. Each sample addresses a common scenario encountered in CP2000 notices, providing you with a starting point for crafting your own effective response. Read each carefully and choose the one that most closely resembles your situation. Remember to customize it to reflect your own unique circumstances.
When crafting your response, maintain a professional and respectful tone, even if you disagree with the IRS. Clearly state the issue, your position, and the supporting documentation you are providing. Organize your documents logically and label them clearly. By following these guidelines, you can significantly increase your chances of a favorable outcome and resolve the CP2000 notice efficiently. Don’t procrastinate; respond promptly to avoid further complications.
CP2000 Response Letter Samples:
Replace bracketed information with your own details.
Sample 1: Agreeing with the CP2000 Notice
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I am writing in response to the CP2000 notice referenced above. I have reviewed the notice and agree with the proposed changes to my [Tax Year] tax return. I have enclosed a check for $[Amount Enclosed] to cover the additional tax, penalties, and interest as detailed in the notice.
Thank you for your attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 2: Disagreeing with the CP2000 Notice – Incorrect Income Reporting
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I am writing in response to the CP2000 notice referenced above. I disagree with the proposed changes to my [Tax Year] tax return. The notice indicates that I failed to report income from [Source of Income]. However, this income was already reported on my original return on Schedule [Schedule Name], line [Line Number].
I have enclosed a copy of my [Tax Year] tax return, specifically Schedule [Schedule Name], to support my claim. I have highlighted the relevant line for your convenience.
Thank you for your attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 3: Disagreeing with the CP2000 Notice – Claiming a Deduction
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I am writing in response to the CP2000 notice referenced above. I disagree with the proposed changes to my [Tax Year] tax return. The notice indicates that I improperly claimed a deduction for [Type of Deduction]. I believe this deduction was valid because [Reason for Claiming the Deduction].
I have enclosed the following documentation to support my claim:
* [Document 1: e.g., Receipt for [Item]]
* [Document 2: e.g., Bank Statement Showing Payment]
* [Document 3: e.g., Relevant IRS Publication]
Thank you for your attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 4: Responding When Income Was Reported Under Your SSN in Error
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I am writing in response to the CP2000 notice referenced above. I disagree with the proposed changes to my [Tax Year] tax return. The notice indicates that I received income from [Source of Income]. This income was not earned by me. It appears the income was incorrectly reported under my Social Security number.
I have contacted [Source of Income] and they are aware of the error and are issuing a corrected Form [Form Number] with the correct taxpayer identification number. I will forward a copy of the corrected Form [Form Number] to the IRS as soon as I receive it. In the meantime, I request that you hold this matter in abeyance.
Thank you for your attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 5: Requesting an Extension to Respond
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I am writing in response to the CP2000 notice referenced above. I require additional time to gather the necessary documentation to respond accurately to this notice. I am requesting an extension of [Number] days, until [Date], to provide a complete response.
[Briefly explain why you need an extension.]
Thank you for your consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 6: Amended Return Already Filed
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I am writing in response to the CP2000 notice referenced above. I filed an amended return on [Date of Filing], Form 1040-X, to address the issue raised in the CP2000 notice. This amended return corrects the discrepancy regarding [Brief Description of Issue]. I have attached a copy of the filed amended return for your reference, along with proof of mailing via certified mail receipt [Certified Mail Tracking Number].
Please review the amended return. If further information is needed, please contact me at [Your Phone Number] or [Your Email Address].
Thank you for your time and attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 7: Reporting Self-Employment Income
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I am writing in response to the CP2000 notice referenced above. I have reviewed the notice and realize I failed to report self-employment income of $[Amount]. I will file an amended return (Form 1040-X) to report this income and pay the associated taxes and penalties. I expect to file the amended return by [Date]. I can provide a copy of my Schedule C as well. (Schedule C form: Profit or Loss from Business).
I apologize for the oversight. I understand the importance of accurately reporting all income and will ensure this does not happen again.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 8: Claiming Previously Unclaimed Credits
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I am writing in response to the CP2000 notice referenced above. I believe I am eligible for the [Name of Credit], which would offset the additional tax liability proposed in the notice. I failed to claim this credit on my original return. To claim the [Name of Credit], I am including [supporting documentation – e.g., Form 2441 for Child and Dependent Care Expenses, receipts, etc.]. This documentation proves my eligibility for the credit, and the amount of the credit should sufficiently cover the proposed underpayment.
I can also provide form 8863 to get education credits if needed.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 9: Income Already Taxed
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I am responding to your CP2000 notice. The income from [Source of Income] was already taxed as [Type of Income, e.g., capital gains, ordinary income] and reported on [Form Number, e.g., Form 1099-B, Schedule D]. A copy of my [relevant form] for the year is attached for your verification. I was taxed already from the given income.
I hope that resolves the discrepancy on your side.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 10: Request Installment Agreement
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I received your CP2000 notice. I do not dispute the amount due, however, I am unable to pay the full amount at this time due to financial hardship. I would like to request an installment agreement to pay off the liability over time. I propose to pay $[Amount] per month. I am also attaching copies of my most recent pay stubs and bank statements. I am hoping for approval. I can fill in form 9465 to apply installment agreement as well.
Hoping for positive response.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 11: Offer In Compromise
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I am responding to your CP2000 notice. I am unable to pay off the amount in full. I would like to apply Offer In Compromise or OIC. This is due to my financial hardship or circumstances. I would need to fill in Form 656 and also attached a form 433-A if I am single or form 433-B if I am business owner. With the form 656, I attached the amount I am willing to settle the taxes. If you need any supporting documents I can provide it.
Looking forward to get approved for the OIC.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 12: Innocent Spouse Relief
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I received the CP2000 notice, however, I can’t pay it fully, due to my circumstances. I would like to request Innocent Spouse Relief. I believe I qualify for innocent spouse relief under Section 6015. I was unaware of the errors on the joint tax return filed with my spouse for the tax year [Tax Year]. I filed form 8857, Request for Innocent Spouse Relief. I have also attached any supporting document if needed.
Looking forward for the approval of IRS.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 13: Identity Theft
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address Shown on CP2000 Notice]
RE: CP2000 Notice – [Notice Number] – [Tax Year] – [Your Social Security Number]
Dear Sir or Madam,
I am writing in response to your CP2000 notice. I have not received any income. I believe I am victim of Identity Theft. I already filed form 14039 and already been reported to the Federal Trade Commission. The income in the CP2000 notice was not earned by me.
I already have reference number with FTC (reference number) and IRS also have (IRS Reference number) so I would like to check with the reference number.
Sincerely,
[Your Signature]
[Your Typed Name]
Responding effectively to a CP2000 notice is crucial for resolving discrepancies with the IRS. Use these sample letters as a guide, tailoring them to your specific situation and providing accurate supporting documentation. Remember to be prompt, professional, and maintain detailed records of all communications. Consulting with a tax professional can provide personalized advice and ensure you navigate the process successfully. Good luck!
