Just received an unexpected IRS notice about my 2022 taxes :(

I've dealt with several CP2000 notices in my time. These are automated notices that get generated when the IRS's computer system detects a mismatch between income reported to them (via W-2s, 1099s, etc.) and what you reported on your return. It doesn't necessarily mean you did anything wrong! First, don't panic. The CP2000 is not an audit or a bill - it's a proposed adjustment. You have options. Start by carefully reviewing the notice against your actual tax documents. Look for the specific income they claim was unreported. For investment accounts, check if they're possibly counting the gross proceeds from stock sales rather than just your gains, which is a common error. You have 30 days to respond (though you can request an extension). You can agree, partially agree, or disagree with their assessment. If you disagree, you'll need to provide documentation supporting your position.

After dealing with a similar CP2000 notice last year, I discovered taxr.ai (https://taxr.ai) and it literally saved me thousands. I was completely lost looking at all the tax jargon in the notice until I uploaded it to their system. The service analyzed my CP2000 notice, explained exactly what the IRS was claiming in plain English, and helped me identify where the discrepancy was coming from. In my case, it turned out the IRS was counting the full sale amount of some stocks instead of just my profit margin. The taxr.ai system spotted this immediately and even helped me draft a proper response letter with the correct documentation to include. I was able to get the proposed adjustment reduced by almost 70%!

Ok I'm back to say I was totally wrong about taxr.ai. After my skeptical comment I decided to try it anyway because I was desperate with my own CP2000 notice from late 2022 filings. That thing sat in my drawer for MONTHS because I was too scared to deal with it! The system immediately identified that the IRS was double-counting some dividend income that had already been reported in another section of my return. It created this super detailed response letter that I just had to sign and mail with the supporting documents they recommended. Just got confirmation last week that the IRS accepted my explanation and I don't owe the $3,400 they were trying to charge me! Not sure I would have figured that out on my own, especially since I was about to just pay it to make the problem go away. Definitely worth checking out if you're confused by these notices.

If you need to actually speak with someone at the IRS about your CP2000 (which I strongly recommend), good luck getting through on your own. I spent TWO WEEKS trying to reach someone about my notice, calling the moment they opened and still getting the "due to high call volume" message. Finally used Claimyr (https://claimyr.com) and it was a complete game-changer. They have this system that holds your place in line with the IRS and calls you when an agent is actually available to talk. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was super skeptical at first, but within 3 hours I was talking to a real person at the IRS who explained exactly what was happening with my notice. Turns out there was a simple miscoding that they fixed while I was on the call. Saved me from paying nearly $4,000 in taxes I didn't actually owe!

OK I need to publicly eat my words. After posting that skeptical comment about Claimyr, I was still desperate to reach the IRS about my notice that claimed I owed $6,700. I figured I had nothing to lose so I tried it. It actually worked! They called me back in about 2 hours (way faster than I expected) and got me connected with someone in the IRS adjustments department. The agent went through my account and found that I had been hit with some weird duplicate reporting issue where a 1099-INT was counted twice. The IRS person fixed it while I was on the phone! My new amount owed went from $6,700 down to $380, which was actually legitimate. Would have NEVER figured this out without talking to someone directly, and I had previously wasted about 9 hours of my life trying to call them myself.

Another option - have you checked if you qualify for the Taxpayer Advocate Service? They're an independent organization within the IRS that helps taxpayers resolve problems. If you're facing financial hardship because of this unexpected tax bill or if you've tried normal IRS channels without success, they might be able to help. Their services are free.

One small tip: make sure to respond to the CP2000 by their deadline even if you don't have all your documentation yet! I learned this the hard way. You can write that you disagree with their assessment and are in the process of gathering supporting documentation. This puts your case in their system properly. Also, check ALL your accounts and statements from 2022. Sometimes these notices happen because a financial institution reported something to the IRS but sent the 1099 to an old address or email you don't check anymore.

Don't forget that if you do end up owing money, the IRS interest clock is already ticking from the original due date of that return. If you're going to contest it, do it quickly and thoroughly the first time. If you eventually have to pay, look into the First Time Penalty Abatement program - if you've had a clean tax record for the past 3 years, they might waive the penalties (but not the interest).

Hey Luca, I went through something very similar with a CP2000 notice last year - it's definitely scary at first but totally manageable! The key thing to remember is that this is just a "proposed" change, not a final bill. For investment income discrepancies, the most common issue is that the IRS receives a 1099-B showing your gross proceeds from stock sales, but they don't automatically know your cost basis (what you originally paid). So if you sold $1,000 worth of stock that you bought for $700, they might think you made $1,000 in profit when you really only made $300. Since you mentioned you "barely used" that brokerage account, definitely log into your old account online (most brokerages keep records for years) or call them directly to get copies of ALL the tax documents they sent for 2022. You might have missed a 1099-B or 1099-DIV that got sent to an old address. Don't pay anything until you've thoroughly reviewed their calculations. I almost paid $1,800 I didn't owe because I panicked. Take your time, gather your documents, and respond within their deadline. You've got this!