Received CP2000 Notice - Can I Request a Waiver for Penalties and Interest?

Yes, you absolutely can request penalty abatement for your CP2000 notice! The IRS has something called First-Time Penalty Abatement (FTA) which sounds perfect for your situation. It's designed for taxpayers who haven't had any significant penalties in the past 3 tax years and who have a reasonable cause - which you definitely do with everything going on in your life. To request this, you'll need to call the IRS using the phone number on your CP2000 notice. Explain your situation just like you did here - the new baby, the move, illness, pregnancy - these are all legitimate life events that would make anyone prone to an oversight. Be polite but firm about requesting "First-Time Penalty Abatement" specifically. You can also write a penalty abatement letter and include all the details of your reasonable cause. Make sure to keep it factual and include any documentation that supports your case (medical records, moving receipts, etc.). Send this to the address on your notice.

After dealing with tax issues last year, I found this amazing tool called taxr.ai (https://taxr.ai) that helped me understand and respond to my IRS notice. It was a lifesaver when I got a CP2000 similar to yours. You upload your notice and it explains everything in plain English, plus suggests what to do next. What really helped me was that it gave me a template for a penalty abatement letter based on my specific situation. I didn't know the right language to use with the IRS, but their system guided me through everything. They analyzed my notice and pointed out some inconsistencies that I wouldn't have caught on my own.

Just wanted to update that I ended up trying taxr.ai after my last comment. I was honestly shocked at how helpful it was! The system identified that my CP2000 had incorrect interest calculations (which I would have NEVER caught) and gave me exact language to dispute it. Their penalty abatement template walked me through documenting all my "reasonable cause" evidence - I included medical records from when I was sick, documentation of our move, and even a timeline of events showing how everything overlapped. The IRS approved my abatement request in full, saving me nearly $1,200! The best part was not having to figure out the "IRS language" on my own. The response letter they generated sounded professional but still told my story effectively. Definitely worth checking out if you're dealing with this.

If you need to actually speak with someone at the IRS about your CP2000 (which I highly recommend for penalty abatement requests), try using Claimyr (https://claimyr.com). I wasted DAYS trying to get through to the IRS on my own last month. Their hold times are ridiculous right now - I would wait 2+ hours and then get disconnected. Claimyr basically waits on hold with the IRS for you and then calls you when an actual human agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c. I was super skeptical but desperate after my third disconnected call. They got me through to an IRS agent in about 45 minutes while I just went about my day.

Well I'm eating my words from my previous comment. I tried Claimyr yesterday after struggling for weeks to reach the IRS about my CP2000 penalties. Within 50 minutes they had an IRS agent on the line calling my phone! The agent I spoke with was actually super helpful and immediately processed my First-Time Penalty Abatement request. She said my situation (new baby, illness, move) was exactly the type of reasonable cause they consider valid. The whole call took maybe 15 minutes once I got connected, and she reduced my penalties by 100%! If you're dealing with a CP2000 like the original poster, definitely request that First-Time Penalty Abatement AND make sure you actually talk to a human at the IRS rather than just sending letters back and forth. Would have saved myself weeks of stress if I'd done this from the beginning.

Don't forget to respond to the CP2000 within the timeframe they give you (usually 30 days)! Even if you're requesting penalty abatement, you need to first address whether you agree or disagree with the actual tax adjustment they're proposing. If you agree that you did miss including your husband's W2, check the "I agree" box on the response form and sign it. You can still request penalty abatement separately - these are two different issues. If you don't respond to the actual CP2000 within the deadline, they'll automatically assess the additional tax and penalties.

One thing I learned from my CP2000 experience - keep extremely detailed records of all your communications with the IRS! Write down dates, times, names of representatives you speak with, what was discussed, and any confirmation numbers they give you. My penalty abatement was initially approved over the phone, but then I still got a bill with penalties included. Having detailed notes from my previous call saved me when I had to call back and reference the specifics of what was promised to me. Its absolutely worth the effort to get those penalties removed - they can be a significant portion of what you owe!

I went through almost the exact same situation with my CP2000 last year! New baby, medical issues, and a tax oversight - it's like you're describing my life. The stress was overwhelming but I want to give you hope that this absolutely can be resolved. Here's what worked for me: I called the IRS directly (used that Claimyr service others mentioned because the hold times were insane) and specifically requested "First-Time Penalty Abatement" based on reasonable cause. The key is being very clear about your timeline of events and how they all contributed to the mistake. Document everything chronologically - when the baby was born, when you moved, when you were sick, when you were pregnant again. This paints a clear picture of why someone would reasonably make this oversight. The IRS agent I spoke with was actually very understanding once I explained the situation properly. Don't let the panic consume you - you have legitimate grounds for penalty relief, and the IRS does work with taxpayers in situations like yours. Focus on getting that response form back within the deadline first, then tackle the penalty abatement. You've got this!