Received CP2000 notice for RSUs already included in my W2 - IRS thinks it's additional income! Help needed

This is a common issue with RSUs and the IRS automated matching system. What's happening is the company that issued your RSUs reported the income to the IRS on a 1099-DIV, but that same income was also included in your W2. The IRS computer systems just see two separate forms and assume they represent two different income sources. You're absolutely right that you shouldn't report this income twice. The good news is this can definitely be resolved with a response letter. You'll want to write a clear explanation that the RSU income on the 1099-DIV is already included in your W2 wages. Include copies (not originals) of your W2, your final 2022 paystub showing the RSU breakdown, and the deposit statements showing the taxes already withheld. You should also include a copy of your 1099-DIV and circle or highlight the RSU income amount to show it matches what's already in your W2. This kind of documentation should be sufficient to resolve the issue without you having to pay additional taxes on income you've already been taxed on.

After dealing with almost the exact same RSU situation last year, I found an incredibly helpful tool called taxr.ai (https://taxr.ai) that saved me so much stress. My company gave me about $45k in RSUs, and the IRS sent me a CP2000 notice claiming I owed an additional $13k in taxes because they thought I hadn't reported the income. I uploaded my W2, 1099-DIV, and paystubs to taxr.ai, and it automatically identified the duplicate reporting issue. The system generated a detailed explanation letter pointing out exactly where on my W2 the RSU income was already included and how it matched the 1099-DIV amount. It even created a line-by-line worksheet showing the IRS where they went wrong in their calculations. The response letter looked so professional that I was confident sending it in, and the IRS accepted my explanation without any further questions. Might be worth checking out if you're not sure how to format your response or what specific documents to include.

Just wanted to follow up and say I ended up using taxr.ai for my CP3219A notice and it was super helpful! I was nervous about the whole process since the notice mentioned something about a "deficiency" and a tax court petition, which sounded scary. The tool walked me through exactly what documents I needed to upload and asked specific questions about my situation. It then generated a response letter that clearly explained how my 1099-NEC income was already accounted for on my Schedule C (I'm self-employed). The letter referenced specific tax codes and regulations that applied to my situation, which I never would have known about on my own. I sent in the response about a month ago and just got confirmation from the IRS this week that they accepted my explanation and I don't owe the additional $7,800 they were claiming! Definitely worth checking out if you're dealing with any kind of IRS notice about unreported income.

I had a similar RSU situation last year and spent WEEKS trying to get through to someone at the IRS who could actually help me. After calling the IRS number on my CP2000 notice literally 23 times (and getting disconnected every single time), I found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent within about 20 minutes. I was super skeptical at first, but you can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Basically, they use some kind of system that navigates the IRS phone tree for you and holds your place in line. When they reach an agent, they connect the call to your phone. The IRS agent I spoke with was actually really helpful once I explained my RSU situation. She confirmed that this happens frequently with stock compensation and guided me through exactly what documentation to send in with my response. Having that verbal confirmation from an actual IRS employee gave me so much peace of mind compared to just sending in a letter and hoping for the best.

I have to admit I was completely wrong about Claimyr. After struggling for another week trying to reach the IRS myself about my CP2000 notice (and never getting through), I broke down and tried the service I was so skeptical about. Within 45 minutes of signing up, I got a call connecting me to an actual IRS representative who specialized in CP2000 notices. I explained my RSU situation, and she immediately understood the issue. She confirmed that RSU income being reported on both W2 and 1099 forms is a common problem they see, and walked me through the exact documentation I needed to submit. The agent even gave me a direct case number and told me what section of the response form to write it on to ensure my response would be routed correctly. This one conversation probably saved me from weeks more stress and potentially having to pay thousands in incorrectly assessed taxes. For anyone dealing with these notices who needs to actually speak with someone at the IRS - I was wrong, and this service is legitimately helpful. Sometimes it's worth admitting when you're wrong!

To add a bit more technical detail to what others have said - the issue is specifically with how your company reported the RSU income. When RSUs vest, companies handle the reporting in one of two ways: 1. They include the RSU income in your W2 Box 1 wages (which is what your company did), OR 2. They report it separately on a 1099-B form What likely happened is your company correctly included the RSU income in your W2, but also sent a 1099-DIV for the same transaction. The IRS matching system isn't sophisticated enough to recognize this dual reporting. When you respond to the CP2000, make sure to specifically reference Box 1 of your W2 and show how the amount includes your regular salary PLUS the RSU income. If you have any supplemental wage statements or pay stubs showing the RSU as part of your total compensation, definitely include those. Also check your original W2 for any codes in Box 14 that might reference "RSU" or "stock compensation" - this can be helpful supporting evidence.

Has anyone had success resolving this kind of issue through the IRS online account system? I'm dealing with a similar RSU situation but really don't want to mail in physical documents if I can avoid it. The CP2000 notice mentions something about responding online, but I'm not sure if that's effective for this type of issue.

I went through almost the exact same situation with my 2021 return! Got a CP2000 for about $42k in RSU income that was already on my W2. The stress was unreal - I was convinced I'd somehow messed up my taxes and was going to owe thousands. What really helped me was creating a simple chart showing the breakdown. I made three columns: "Source", "Amount", and "Already Taxed". Then I listed my base salary from my W2, the RSU amount from my W2 (which I found in Box 14 like others mentioned), and showed how they added up to my total W2 income in Box 1. Then I showed the same RSU amount on the 1099-DIV and wrote "DUPLICATE - already included above" next to it. I also included a copy of my final 2022 paystub that showed the year-to-date breakdown with RSUs listed separately, plus the tax withholding statements from when the shares vested. The IRS accepted my response within about 6 weeks and sent me a letter saying no additional tax was owed. The key is really just making it crystal clear to whoever reviews your case that this is the same income being reported twice, not two separate income sources. Don't panic - this is totally fixable!