USTaxPenaltySaverCP2000
High PriorityNotice of Underreported Income
The IRS received information that does not match what you reported on your tax return.
Response Deadline
30 days from notice date
Respond before this deadline to avoid additional penalties and enforcement action.
What This Notice Means
CP2000 is NOT an audit notice or a bill. It is a proposal from the IRS to adjust your return because income reported to them (W-2, 1099, etc.) does not match what you reported. The IRS uses the Automated Underreporter (AUR) program to identify these mismatches. You have the opportunity to agree, partially agree, or disagree with the proposed changes.
Why You May Have Received This
- 11099 income not reported or reported differently
- 2W-2 withholding mismatch
- 3Stock sale basis not reported correctly
- 4Cryptocurrency transactions
- 5Rental income discrepancy
Required Actions
Review all items listed in the notice
Gather documentation (1099s, W-2s, etc.)
Respond by the deadline even if you need more time
Sign and return the response form
Your Options
Use these calculators to understand your situation and explore resolution options.
Consequences If Ignored
- If no response, proposed changes become final and you will owe the tax
- Letter 3219 (Notice of Deficiency) will be sent if unresolved
- Accuracy-related penalty (20%) may apply
Tips & Best Practices
- This is NOT an audit - it is an automated matching program
- Many CP2000 notices are incorrect - always review carefully
- Common issue: Stock sales show gross proceeds but you need to show basis
- Respond even if you cannot pay - not responding triggers assessment
- You can request an extension if you need more time to gather documents
Related Resources
Legal References
Ready to Take Action?
Our guided workflow will walk you through exactly what to do for this notice, step by step.