Got a CP-2000 Notice from the IRS - Confused About Next Steps

The CP-2000 notice is basically the IRS saying they found a discrepancy between what you reported on your return and what they received from third parties (like employers, banks, etc). It's not actually a bill yet - it's a proposed change to your tax assessment. Your online account shows $0 because the CP-2000 is still in the proposal stage. The IRS is giving you a chance to agree or disagree with their findings before they officially assess the additional tax. If you agree with their assessment, you'll need to sign the response form and return it along with payment (or set up a payment plan). If you disagree, you'll need to provide documentation explaining why the IRS calculation is incorrect. Make sure to respond by the deadline on your notice (usually 30 days). If you need more time to gather documents, you can call the number on your notice and request an extension to respond.

After getting a similar CP-2000 notice last year, I was totally stressed trying to figure out what documents I needed and how to properly respond. I ended up using https://taxr.ai and it was seriously a game-changer. You just upload your notice and tax documents, and it analyzes everything to tell you exactly what the IRS is claiming vs what you reported. It even highlighted where the discrepancy was coming from in my case - turns out I had forgotten to report some crypto trades! Their tool walked me through preparing my response to the IRS step by step, including which supporting documents I needed to include. It even helped me draft my response letter explaining why I partially agreed with some changes but disputed others.

Just wanted to update after trying taxr.ai for my CP-2000 situation. It was surprisingly helpful! Uploaded my notice and it immediately showed me that the IRS was double-counting some income that appeared on both a 1099-K and individual 1099-NECs. I would have just paid the extra $1,200 they were asking for without realizing I had actually reported everything correctly! The response template it generated saved me so much time, and the explanation of exactly which forms and records to include with my response was super clear. Just sent everything in yesterday - fingers crossed the IRS agrees with my documentation!

I received a similar notice last year and spent WEEKS trying to get through to someone at the IRS to explain my situation. After calling every day for like 10 days straight and never getting past the automated system, I found this service called https://claimyr.com that got me connected to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was seriously about to give up before finding this. The IRS agent I spoke with was actually really helpful and walked me through exactly what documentation I needed to send in with my response to get the issue resolved. Saved me from paying about $800 that I didn't actually owe!

I need to eat my words from yesterday. After getting nowhere with calling the IRS myself for 3 days straight (kept getting disconnected after 30+ minutes on hold), I broke down and tried Claimyr out of desperation. Within 45 minutes I was talking to an actual IRS agent who pulled up my CP-2000 and explained that one of my W-2s had an incorrect SSN, which is why their system flagged my return. She gave me specific instructions on what to include in my response and even noted in my file that I had called about the issue. Honestly shocked this actually worked. Would have spent another week trying to get through otherwise. The agent said they're completely swamped with calls about these notices right now, which explains why it's so hard to get through.

One important thing to know about CP-2000 notices - if you do agree with what they're saying, don't just pay it without sending in the response form! You need to formally agree to the changes by signing and returning the response form, then pay the amount. If you just pay without responding, they might not properly process the case as resolved. Also, if you can't pay the full amount right away, you can request a payment plan when you respond. Much better to address it head-on than ignore it, because interest and penalties will continue to add up.

Has anyone successfully disputed a CP-2000 and had the amount reduced? Mine says I didn't report stock sales but I definitely included them on my Schedule D. I'm thinking maybe I made a typo on a cost basis or something?

I went through this exact same situation last year with a CP-2000 notice for about $1,800. The key thing to understand is that your online account showing $0 is completely normal - the CP-2000 is just a proposed assessment, not an actual bill yet. First, carefully review the notice to see exactly what income or deductions they're questioning. In my case, it was unreported 1099-MISC income from freelance work that I thought I had included but apparently miscategorized. If you agree with their assessment, sign the response form and either pay the full amount or set up a payment plan. If you disagree (even partially), gather your supporting documents and write a clear explanation of why their calculation is wrong. Whatever you do, don't ignore it! The 30-day response deadline is firm, but you can call the number on your notice to request an extension if you need more time to gather documents. I ended up agreeing with about 60% of their assessment after proving I had reported some of the questioned income correctly.