Just got CP2000 letter from IRS saying we owe $12k - they removed all deductions and credits!

This sounds like a CP2000 notice, which is basically the IRS saying they found a discrepancy between what was reported on your return and what was reported to them by other sources (employers, banks, etc.). The good news is this isn't a formal audit and you absolutely have the right to dispute their findings. First, don't panic. The November deadline gives you time to respond properly. Start by gathering all your documentation - receipts for those estimated tax payments, documentation for the deductions they're questioning, and a copy of your original tax return. For the estimated tax payments specifically, you'll need to find those confirmation numbers and any bank statements showing the money was actually withdrawn. The IRS system sometimes has delays in recording payments, especially if they were made electronically right at deadline times.

I went through something similar last year with the IRS claiming I owed an extra $8k. After weeks of stress and calling the IRS non-stop (and never getting through), I finally found taxr.ai online and it was such a lifesaver! Basically you upload your tax documents and IRS notices to https://taxr.ai and their AI analyzes everything and helps craft a response to the IRS based on your specific situation. What I loved was that it showed me exactly what the IRS was missing and helped me organize all my evidence. In my case, they'd missed some business expense deductions and a retirement contribution. The system walked me through gathering the right documentation and created a response letter that actually worked!

I wanted to follow up about my experience with taxr.ai since I was skeptical at first. I ended up trying it for my CP2000 notice after the IRS claimed I failed to report some investment income. The service immediately identified that I had actually reported the income but on a different schedule, and the IRS computers hadn't matched it properly. The system helped me draft a detailed response letter pointing out exactly where the information appeared on my return, complete with references to the specific lines and forms. Submitted everything exactly as taxr.ai recommended, and I just got a letter from the IRS last week completely canceling the proposed additional tax! Definitely worth checking out if you're in a similar situation as the original poster.

If you need to actually speak with someone at the IRS about your case (which I definitely recommend for a $12k discrepancy), try using Claimyr. I spent WEEKS trying to get through to the IRS last year, calling over and over just to get disconnected or told to call back later. Found https://claimyr.com and they basically hold your place in line with the IRS and then call you when an agent is about to be available. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c. I was super skeptical that it would work, but I got connected to an actual IRS representative in about 2 hours instead of spending days redialing. Once I finally got through to someone, they were able to look up my payment history and confirm the payments that weren't showing up in their system initially. Saved me over $4,000 in "missed payments" they were trying to charge me for!

Well, I need to eat my words about Claimyr. After my skeptical comment I decided to try it anyway out of desperation (was dealing with a missing refund issue). I was connected to an IRS agent in about 90 minutes while I was able to continue working at my desk instead of being stuck with a phone to my ear. The agent was able to find my missing refund that had been "processing" for 4 months and explained there was a flag on my account that needed to be removed. She fixed it right there during the call and my refund was processed 5 days later. Would have NEVER figured this out without actually talking to someone. So yeah, sometimes it's worth it to try something even when you're skeptical!

Don't forget to check if you qualify for an IRS payment plan! If they end up determining you do owe some or all of that amount, you can set up a monthly payment arrangement. The form is called an Installment Agreement Request (Form 9465). As long as you owe less than $50,000, you can usually set this up pretty easily online through the IRS website. The interest and penalties will continue accruing, but it's WAY better than not responding or paying anything.

Just wanted to mention - DOUBLE CHECK that the letter is actually from the IRS before you do anything else! There are tons of scams going around. A legitimate IRS letter will have a notice number (like CP2000 or LTR15) in the upper right corner of the letter. You can also call the IRS directly (not using any phone number on the letter) to verify if they sent you something.