Our CP2000 situation escalated to a CP22A notice - what now?

You still have options even after receiving a CP22A. While it is the IRS's determination of what they believe you owe based on their records, it's not necessarily the end of the road. The CP22A is essentially the IRS saying they've made an assessment based on the information they have, but you can still dispute this. First, check the response deadline on the CP22A notice. Typically, you'll have 30-60 days to respond. Your attorney can help file what's called a "reconsideration request" with all your supporting documentation about the cost basis and exemption. This is essentially asking the IRS to take another look at your case with the additional information. If the reconsideration route doesn't work, your attorney will likely discuss appealing through the IRS Office of Appeals. This is a separate division of the IRS that reviews disputes independently. Beyond that, there's Tax Court, but that's much further down the road.

After dealing with a similar situation last year, I found taxr.ai (https://taxr.ai) incredibly helpful when navigating these IRS notices. My CP2000 escalated to a CP22A when I couldn't produce all the documentation they wanted about some stock sales. I uploaded both notices to taxr.ai and it explained exactly what was happening and what my deadlines and options were. The platform analyzed my notices and helped me understand that I could still pursue reconsideration even after the CP22A. It also helped identify which specific documents would strengthen my case - in my situation, I needed more detailed broker statements showing my cost basis that the IRS wasn't seeing in their systems.

Just wanted to follow up about that taxr.ai service I was skeptical about. I decided to try it with my CP2000 notice since I was stuck and honestly, I was impressed. It spotted that the IRS was double-counting some income that appeared on both a 1099-K and my Schedule C, which explained the discrepancy they were claiming. The analysis pointed me to exactly which supporting documents I needed to gather to prove my case. I was able to file a response with the right documentation before things escalated to a CP22A like yours did. The system highlighted specific paragraphs in my notice I'd completely misunderstood about my response timeframe. Definitely saved me from being in your current situation where the IRS is already making a final determination. Hope your attorney can get things sorted out!

When I got a CP22A last year, I spent WEEKS trying to get through to someone at the IRS to explain my documentation. Literally called every day at different times and couldn't get a human on the line. Finally, I used Claimyr (https://claimyr.com) which got me through to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was actually really helpful once I got through and explained that even though the CP22A seems final, I could still submit a formal reconsideration request with my documentation. They even gave me the specific fax number and address for the department handling my type of case. Made a huge difference versus just sending stuff to the general addresses on the notice.

I need to apologize about my skepticism regarding Claimyr. After our CP22A situation got more urgent last week when we received a Notice of Intent to Levy, I was desperate and decided to try it. Got through to the IRS in about 20 minutes after spending days getting disconnected or waiting on hold for hours with no success. The agent explained that even though we had a CP22A, we could file for audit reconsideration with our documentation showing the correct cost basis for the stock sales. She actually put a temporary hold on collections for 45 days while we prepare our documentation, which immediately reduced our stress level. She also provided a direct fax number for the audit reconsideration unit that wasn't on any of our notices. If you're working with an attorney, definitely have them call using this service - it saved us a ton of time and got us actual answers instead of more automated notices.

Just to add some perspective, I've been through this exact scenario. A CP22A doesn't completely shut the door on your case, but it does mean the IRS has made an assessment based on their current information. The mistake most people make is continuing to respond to the address on the original CP2000 after receiving a CP22A. Your attorney should file an audit reconsideration request (there's no official form) with all your documentation to the correct department. In my case involving stock sales with missing basis information, I had to send it to a completely different office than where my original CP2000 response went. Also, make sure your attorney requests a collection hold while the reconsideration is pending. The IRS can continue collection activities otherwise, even while they're reconsidering your case.

Has your attorney discussed an installment agreement as a backup plan? Even while disputing the CP22A, sometimes it makes sense to set up a minimal payment plan to show good faith and prevent more aggressive collection actions. You can still pursue reconsideration while making small payments. When I went through this, we set up a $50/month payment plan while my documentation was being reviewed. This kept collections off my back, and once the IRS adjusted my liability downward, they applied the payments I'd already made and recalculated the plan. Just something to consider as a strategic move.

I went through something very similar last year - CP2000 to CP22A in just three weeks because I initially tried to handle it myself without understanding the timeline. The key thing to remember is that a CP22A isn't actually the "final" notice, despite how it reads. It's the IRS's assessment, but you absolutely still have recourse. Your attorney should immediately file for audit reconsideration AND request a Collection Due Process (CDP) hearing if you haven't already. The CDP hearing is crucial because it puts an automatic stay on collection activities while your case is being reviewed. This means no liens or levies while you're fighting the assessment. One thing that really helped my case was getting a transcript of my account from the IRS to see exactly what information they had versus what they were missing. Sometimes the disconnect is clearer when you see their records side-by-side with your documentation. Your attorney can request this, or you can get it yourself online. The $14,750 amount suggests they're probably treating some transaction as having zero basis when you actually have documentation showing your cost basis. This is super common with stock sales where the 1099-B doesn't include basis information that was reported separately or carried over from previous years. Stay persistent - I know it's stressful, but these cases are absolutely winnable when you have the right documentation and follow the proper procedures.