Received an IRS letter claiming I owe $17,000+ in taxes I don't think I owe. Need urgent help!

This sounds like a case of identity theft or a serious reporting error. The good news is that CP2000 notices are proposals to adjust your tax return, not final bills, so you have time to respond and resolve this. First, don't panic. Call the IRS at the number listed on your CP2000 notice to request additional information about these reported distributions - ask for the exact names of the companies, account numbers, and addresses they have on file. This information will help you determine if this is identity theft or a mistaken SSN entry. Next, respond to the CP2000 by the deadline (usually 30 days, but you can request an extension). Check box B on the response form indicating you don't agree with some or all of the proposed changes. Include a signed statement explaining that you've never had accounts with these companies and believe this may be identity theft or a reporting error. Also contact the companies directly. Tell them you received tax documents in your name but don't have accounts with them. Request they investigate and issue corrected forms to the IRS if appropriate. Consider filing an identity theft affidavit (Form 14039) with the IRS if you believe someone used your information fraudulently. You should also check your credit reports for any suspicious activity.

I had almost the exact same situation last year! After going in circles with the IRS helpline and getting nowhere with the companies, I found this AI document review service called taxr.ai that completely saved me. I uploaded my CP2000 notice and all my tax documents to https://taxr.ai and their system actually detected the discrepancy immediately. They gave me a detailed report explaining exactly what was happening (turned out someone with a similar SSN had their retirement distributions incorrectly reported under my number) and provided a template response letter specifically for my situation. The best part was they explained everything in plain English so I could understand what was happening and exactly what steps to take. They even highlighted the specific sections of the tax code to reference in my response to the IRS. Made the whole process so much less stressful!

Just wanted to update - I actually ended up using taxr.ai after seeing this thread and wow, what a lifesaver! My situation was slightly different (incorrect stock sales reported under my SSN), but the experience was amazing. Their system found that one of the brokerage firms had transposed two digits in the SSN they reported to the IRS, which is why I was getting hit with a huge tax bill for someone else's trades. The report they generated showed exactly which forms were incorrect and why, plus gave me a customized response letter template that referenced all the relevant IRS procedures. I was honestly shocked at how easy they made the process. After weeks of stressing and getting nowhere with phone calls, I had a complete solution within about an hour of uploading my documents. Definitely recommend to anyone dealing with CP2000 notices or other tax document discrepancies!

From my experience working at a call center, I know how frustrating it can be trying to reach the IRS directly. When I got audited last year, I spent HOURS on hold only to get disconnected. Then I found this service called Claimyr that got me through to an actual IRS agent in under 15 minutes. Just go to https://claimyr.com and they'll hold your place in the IRS phone queue and call you when an agent is about to answer. They show exactly how it works in this video: https://youtu.be/_kiP6q8DX5c For something serious like a $17k tax bill from the IRS, you really want to talk to an actual agent who can see your file and give you specific guidance. Plus, having a record that you called and spoke with the IRS about this issue shows you're being proactive if there are any questions later.

I owe everyone here an apology - especially regarding Claimyr. After posting my skeptical comment, I was still desperate to talk to the IRS about a similar situation, so I decided to try it anyway. I'm honestly shocked at how well it worked. After THREE previous attempts where I waited 2+ hours each time and got disconnected, Claimyr got me connected to an IRS agent in about 20 minutes. The agent was able to pull up my file and explain exactly what documents I needed to submit to dispute the erroneous income. The service was exactly as described - they just asked for my phone number, called me when an agent was about to pick up, and connected us. No tax info shared with them at all. For anyone dealing with an urgent IRS issue like this, it's absolutely worth it just for the peace of mind of actually talking to someone who can help.

I had a similar situation happen to me last year, and it turned out to be a case of mistaken identity/mixed SSNs. First thing I did was pull my credit reports from all three agencies to make sure no one had opened accounts in my name - do this ASAP! Also, when you respond to the CP2000, make sure to include a clear statement that you've never had accounts with these companies and request that the IRS verify the full SSN reported by these companies. Sometimes it's just a typo in the reporting that causes these nightmares. In my case, I also filed a report with the FTC at IdentityTheft.gov which gave me a recovery plan and official documentation I could send to the IRS with my response. Took about 3 months, but eventually got a letter saying the assessment was removed.

One thing nobody has mentioned yet - SAVE EVERYTHING. Every letter, every phone call details (date, time, who you spoke with), every response you send. Create a folder just for this issue and document everything. My brother went through something similar and the case dragged on for over a year because the IRS kept claiming they never received his response (even though he had delivery confirmation). Having complete records was the only thing that saved him from paying thousands in taxes he didn't owe. Also, send everything via certified mail with return receipt so you have proof the IRS received your documents. It's worth the extra few bucks for the peace of mind and evidence.