CP2000 Notice Claims I Have $2 Million in Unreported Income from Law Firms I Never Worked For

This sounds like a clear case of identity theft. You need to respond to the CP2000 notice by the deadline in the letter (usually 30 days) or the IRS will assume you agree with their assessment. Here's what you should do: First, call the phone number on your CP2000 notice and explain the situation. Ask them to put a note on your account that you're disputing the income due to suspected identity theft. Then follow up with a written response using the response form that came with your notice. Clearly state that you never worked at these law firms and suspect identity theft. Include any evidence you have of your actual employment during those periods. You should also fill out Form 14039 (Identity Theft Affidavit) and submit it with your response. This will flag your account for special handling. Additionally, request your wage and income transcripts from the IRS to see exactly what's being reported under your SSN. You don't necessarily need a tax professional for this initial response, but if the issue persists or gets complicated, it might be worth consulting with one who specializes in tax controversy.

After dealing with a similar nightmare last year (though mine was "only" $300k of phantom income), I highly recommend checking out https://taxr.ai for help with this situation. I was going crazy trying to figure out how to respond to my CP2000 notice, and their document analysis tool was a lifesaver. I uploaded my CP2000 notice and they broke down exactly what information the IRS was claiming and helped me draft a response letter that addressed each specific item. The service highlighted the most important sections of my CP2000 that needed immediate attention and explained what supporting documentation I needed to gather. This was super helpful because the IRS notice itself was confusing as hell.

Just wanted to update that I tried taxr.ai after seeing this thread and it was seriously helpful! My situation was nowhere near as complex as the OP's, but I was confused about how to respond to the IRS claiming I had unreported income from a 1099 that wasn't actually mine. The system helped me understand exactly what the IRS was claiming and walked me through creating a response that included all the necessary information. It highlighted the specific parts of my notice I needed to address and suggested what documentation to include with my response. I sent in my response last month and just got confirmation from the IRS that they've accepted my explanation and closed the case. Definitely worth checking out if you're dealing with any kind of IRS notice!

Having gone through something similar (though not quite $2 million!), I know how frustrating those endless IRS phone queues can be when you're trying to resolve identity theft. After wasting days trying to reach someone, I used https://claimyr.com to get through to an actual IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c Basically, they wait on hold with the IRS for you, then call you when they've got an agent on the line. I was skeptical at first, but when I was connected to an IRS rep within hours instead of days, it was a game-changer. The agent was able to flag my account for identity theft immediately and give me specific instructions for my written response.

I take back what I said about Claimyr being a scam. After my frustration peaked trying to reach the IRS for THREE DAYS about my own tax issue, I reluctantly tried the service. I was 100% prepared to come back here and expose it as garbage. Instead, I got a call back in about 90 minutes connecting me directly to an IRS representative. The agent was able to immediately note my account with information about the identity theft situation and gave me specific instructions on what documentation to include with my written response. For anyone dealing with identity theft or other urgent IRS matters, being able to actually speak with a human at the IRS quickly makes a huge difference. I'm still shocked it actually worked. Just wanted to admit I was wrong and that it legitimately helped me move forward with resolving my issue.

Don't panic, but don't delay either. This is almost certainly identity theft, and you need to take immediate steps beyond just responding to the CP2000: 1. Pull your credit reports ASAP (annualcreditreport.com) 2. Put a freeze on your credit at all three bureaus 3. Change passwords on your financial accounts 4. Set up credit monitoring 5. File a complaint with the FTC at identitytheft.gov 6. Consider filing a police report THEN deal with the IRS using the advice others have given. Trust me, I work with identity theft victims, and the quicker you address the wider implications, the better off you'll be.

Anyone else think it's weird they picked law firms specifically? Like why not just random companies? Makes me wonder if the scammer works at a law firm and has access to the payroll system or something.