Received CP2000 from IRS claiming I owe $12K+ from Robinhood stock transactions

This is actually a pretty common problem with brokerages like Robinhood. What's happening is that the IRS received what's called a 1099-B from Robinhood that only shows your proceeds from stock sales (the $52,000), but not your cost basis (what you paid for those stocks). When responding to the CP2000, you'll need to include: 1. A copy of your complete and correct 1099-B from Robinhood that shows both your sales proceeds AND cost basis 2. A written explanation stating that Robinhood reported incomplete information to the IRS 3. Your own calculation showing your actual capital gains/losses for those transactions If you have the Robinhood tax forms that show your cost basis, that's what you need to send. The IRS is essentially assuming all $52K was profit because they don't have record of what you paid for the stocks originally. Don't panic - this is fixable with the right documentation. Just make sure you respond before the deadline with everything clearly organized.

I went through almost the exact same situation last year with about $35k in supposed unreported gains from crypto trades. After spending hours trying to reconstruct all my transactions and still feeling uncertain, I started using https://taxr.ai and it honestly saved me. Their system was able to analyze my Robinhood statements and identify exactly what the IRS was missing. It organized all my cost basis information, matched it with the sales transactions, and generated the exact documentation I needed to respond to the CP2000. They even included a cover letter template explaining the situation to the IRS in their terms. Might be worth checking out since you're in the same boat I was in. The peace of mind alone was worth it for me because I was freaking out about owing money I didn't have.

Just wanted to update that I decided to try taxr.ai after seeing the recommendation here. I was skeptical at first but honestly so glad I did. My situation was almost identical - CP2000 notice for about $18K from stock sales where the IRS didn't have my cost basis info. Their system analyzed all my Robinhood statements, found every purchase and sale, and created a perfectly formatted response package for the IRS. They even highlighted where Robinhood's reporting was incomplete and cross-referenced everything with my actual transactions. Just got confirmation from the IRS last week that my case is resolved and I only owe $210 for a dividend payment I actually did miss reporting. Saved me over $17,000 in incorrect tax assessments! Definitely worth checking out if you're dealing with this Robinhood CP2000 mess.

After dealing with something similar (though with Coinbase, not Robinhood), I spent WEEKS trying to get through to the IRS to explain my situation. Calling was impossible - always on hold for hours only to get disconnected. Finally found https://claimyr.com and used their service which actually got me a callback from the IRS within a couple hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c Having an actual conversation with an IRS agent made all the difference. They explained exactly what documentation I needed to submit and even noted in my file that I had contacted them about the CP2000 issue. Made the whole process way less stressful knowing I was on the right track with my response.

I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I was still desperate enough to try it since my CP2000 deadline was approaching fast. Used the service yesterday morning, and no joke, I got a call from an actual IRS agent about 3 hours later. The agent walked me through exactly what documentation I needed for my Robinhood transactions and even gave me his direct line for follow-up questions. For anyone dealing with these CP2000 notices, being able to actually speak with someone at the IRS makes a HUGE difference. They explained that this Robinhood issue is super common right now and gave me confidence that my response would be accepted if I included the right documentation.

Just wanted to add something important that people often miss: make sure you're calculating your cost basis correctly on those Robinhood trades. If you were buying fractional shares or doing dividend reinvestment, you need to account for every single purchase, not just the initial investment. Also, if you did any wash sales (selling at a loss and buying similar securities within 30 days), your cost basis gets adjusted. Robinhood should show this in your detailed statements, but it's easy to miss.

One more thing - when you respond to the CP2000, don't just send a stack of documents without explanation. Create a simple cover letter that clearly states: 1) You agree/disagree with the notice 2) The exact reason (Robinhood reported proceeds without cost basis) 3) A simple calculation showing your actual gain/loss I made the mistake of just sending in statements without a clear explanation and ended up getting another notice because they couldn't figure out what I was trying to show them.

As someone who just went through this exact same nightmare with Robinhood, I wanted to share what worked for me. I got a CP2000 for $23K that I definitely didn't owe. The key thing that saved me time was organizing everything before I responded. I created a spreadsheet with three columns: what the IRS thought I made, what I actually made, and the difference. Then I attached the supporting Robinhood documents for each transaction. What really helped was calling the number on the CP2000 notice (yes, you'll be on hold forever, but it's worth it). The agent told me that as long as I could prove my cost basis with official brokerage statements, they would accept my response. She also mentioned that these Robinhood cases are super common right now - apparently their reporting system changed and it's causing tons of these notices. My advice: Don't panic, gather ALL your Robinhood tax documents (the complete package, not just the summary), and respond with a clear explanation. It took about 8 weeks, but I got a revised notice showing I owed $0. You've got this!