CP2000 Second Notice - Where do I Start Addressing It?

Just got a second CP2000 notice from the IRS and I'm honestly freaking out a little bit. After responding to the first CP2000 letter, I managed to get the total amount they claimed I owed from over $9,500 down to about $3,400, but they're still saying I owe them money. I thought I had resolved everything with my first response, but apparently there's still some kind of discrepancy they're not happy with. The notice mentions income that wasn't reported on my return, but I'm pretty sure I included everything. I did have a side gig that year in addition to my regular job, so maybe that's causing confusion? I've tried calling the IRS several times but can never get through to an actual person. The deadline to respond is in 3 weeks and I'm not sure if I should just pay what they're asking or try to dispute it again. Has anyone dealt with multiple CP2000 notices before? What's the best approach here?

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18 comments

Ethan Brown

•8M

I've helped several clients navigate CP2000 notices, so I can offer some guidance. First, don't panic - a second notice is actually quite common after an initial response, especially when there's been a partial adjustment like in your case. Take a close look at the new notice to identify specifically what discrepancy they're still claiming exists. The CP2000 will list exactly what income they believe was unreported or underreported. Compare this with your tax return and any supporting documents (W-2s, 1099s, etc.). Often the issue is that the IRS received income information from a third party that doesn't match what's on your return. For that side gig, make sure all that income was properly reported on your Schedule C or appropriate tax form. Sometimes people report the income but on the wrong form, or miscategorize it, which can trigger these notices. Don't just pay if you believe the amount is incorrect. You have the right to dispute it again with proper documentation. Gather all relevant financial records and prepare a clear, concise response explaining why you believe the assessment is wrong (or acknowledging if part of it is correct).

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Ethan Brown

•8M

You should definitely send documentation again, even if you sent it with your first response. The IRS doesn't always connect previous correspondence to new cases, and it's better to be redundant than to assume they have access to what you sent before. As for confirming receipt of your first response, that's reflected in the fact that they reduced your liability from $9,500 to $3,400. That tells you they did receive and process your first response, but they only agreed with part of your position. The current notice is addressing the remaining discrepancies they still believe exist.

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Carmen Ortiz

•8M

I was in a similar situation with a CP2000 last year. After hours of frustration trying to figure out what was wrong, I found this tool called taxr.ai (https://taxr.ai) that honestly saved me so much stress. I uploaded my CP2000 notice and my tax documents, and it analyzed everything to show me exactly where the discrepancies were. Turns out I had reported income from a 1099 job correctly on my Schedule C, but I had miscategorized some of the income which made it look like I was underreporting. The tool showed me exactly what lines on my tax return were causing the issue and gave me step-by-step instructions on how to respond to the IRS with the right documentation.

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Carmen Ortiz

•8M

Yes, it works specifically with tax notices like CP2000s, which is why it was so helpful for me. Regular tax software is great for filing but doesn't typically help much when you get notices after the fact. This specifically analyzes the notice against your return to find mismatches. Regarding security, I had the same concern initially. They use bank-level encryption and don't store your documents permanently. Once the analysis is complete, you can delete everything. And yes, it gives you a template response letter with exactly what to write based on your specific situation, which you can customize. I just had to print it, sign it, and mail it with the supporting documents it recommended.

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Zoe Papadakis

•8M

I wanted to follow up about my experience with taxr.ai after I commented earlier. I decided to give it a try since my situation with the CP2000 was getting more complicated. Honestly, it was easier to use than I expected. I just uploaded the notice and my tax forms. The analysis showed that the IRS was counting some investment income twice because the brokerage had filed a corrected 1099 after I filed my taxes. I never would have caught that on my own! The tool created a response letter that explained exactly what happened with references to the specific tax codes. Sent it in last month and just got confirmation that my case was closed with no additional tax owed. Wish I'd known about this with my first notice, would have saved a lot of headaches.

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Jamal Carter

•8M

Having been through the CP2000 nightmare twice, my biggest advice is to actually TALK to someone at the IRS rather than just responding by mail. But we all know how impossible that is - I spent literally DAYS on hold across multiple attempts. Finally found Claimyr (https://claimyr.com) which got me through to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent was able to pull up my case and explain exactly what documentation they needed to resolve the issue. Turns out I had been sending the right docs all along but to the wrong department!

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Jamal Carter

•8M

It's not magic - they use technology to navigate the IRS phone system and wait on hold for you. When they reach a human, they call you and connect you directly to the agent. They basically do the waiting for you so you don't have to sit there for hours. They're legitimate and have been featured in major news outlets. I was skeptical too, but when you're facing thousands in potential taxes, the service is worth trying. And no, they don't just give you a number - they actually get you connected to a live IRS agent who's ready to talk to you immediately when your phone rings.

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Mei Liu

•8M

Ok I have to admit I was wrong about Claimyr. After posting my skeptical comment, I decided to try it since I was desperate with my own CP2000 situation. It actually worked exactly as described - I got a call back in about 30 minutes and was connected immediately to an IRS agent. The agent pulled up my file and explained that they were still waiting on verification of some education credits I had claimed. Once I knew exactly what the issue was, I was able to send in just the specific documents needed instead of a huge packet of everything. Saved me about $2,100 in proposed additional taxes. Sometimes being proven wrong is actually a good thing!

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Liam O'Sullivan

•8M

You need to demonstrate that the tax issue is causing you significant financial difficulty or that the normal IRS processes aren't working correctly in your case. Examples would be if paying the amount would prevent you from affording necessary living expenses or if you've made multiple attempts to resolve the issue through normal channels without success. You can call them directly or fill out Form 911 (Request for Taxpayer Advocate Service Assistance). You'll need to explain your hardship situation clearly. For your $4k situation, if paying that would prevent you from paying rent, utilities, or medical expenses, that could qualify. They can sometimes help set up manageable payment plans or put a temporary hold on collection activities.

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