Returned home to find CP2000 notice with expired deadline - what can I do now?

First, take a deep breath. The IRS is more reasonable about deadlines than most people think, especially when you have a legitimate reason for missing one like being out of town. The most important thing is to respond ASAP. Don't wait any longer trying to figure out the perfect approach. Prepare your response to the CP2000 with all your stock sale documentation showing the correct cost basis. Include a brief cover letter explaining why you're responding late (your extended absence) and that you're submitting as quickly as possible after discovering the notice. Mail everything using certified mail with return receipt so you have proof of when they received it. While the 30-day deadline is preferred, the IRS routinely processes late responses to CP2000 notices before escalating to a Notice of Deficiency. If you have your stock sale records showing the correct cost basis, this should be a straightforward correction. Even if they move forward with assessment, you can still resolve it - it just might take a bit longer. The key is documenting everything and responding promptly now that you know about it.

After dealing with a similar CP2000 issue last year, I discovered taxr.ai (https://taxr.ai) and it was seriously helpful. I uploaded my CP2000 notice and all my stock transaction records, and it analyzed everything and created a perfectly formatted response that explained all my cost basis issues. The system even identified a few transactions I would've missed that actually reduced what I owed even further. The best part was that they explained exactly what supporting documents to include with my response, which made a huge difference. When I called the IRS after sending everything (finally got through after like 6 tries), the agent mentioned that my response was one of the most complete they'd seen. Got my revised assessment with the correct amount about 6 weeks later.

Just wanted to update - I actually tried taxr.ai after posting my skeptical comment above. I was really impressed by how it handled my CP2000 situation. The system quickly identified all 17 stock transactions where the cost basis was missing and generated a perfect response letter explaining each one. The best feature was how it created a spreadsheet matching my broker's records to the IRS information, showing exactly where the discrepancies were. When I sent in my response packet, I included everything they recommended - and just got notification that my case was resolved! Instead of owing $54k, I now only owe $1,270 which is the actual tax on my gains after accounting for the proper cost basis. Even though I was 12 days late responding, there were no issues with the IRS accepting my documentation. Definitely worth checking out if you're in a similar situation.

If you're still struggling to reach the IRS, try using Claimyr (https://claimyr.com). I was in the same boat with a CP2000 notice and couldn't get through on the phone for days. Their service actually gets you connected to an IRS agent without the hours of hold time. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c I was super skeptical at first, but I was desperate after trying for three days straight to reach someone at the IRS. Claimyr got me connected to an IRS agent in about 20 minutes. I explained my situation with the late CP2000 response, and the agent noted in my file that I had called and was preparing my response, which gave me some breathing room. They even told me exactly where to send my documentation for fastest processing.

I need to eat my words about Claimyr. After posting that skeptical comment, I decided to try it since I was also dealing with a CP2000 issue and couldn't get through to the IRS. It actually worked exactly as advertised. I got a call back in about 35 minutes with an IRS agent already on the line. The agent confirmed that responding to a CP2000 within a few weeks of the deadline is totally fine - they don't immediately escalate things if you miss the date by a small margin. They also gave me a direct fax number for my specific tax center to send my documents, which was much faster than mailing everything. I submitted all my documentation the next day, and just got confirmation that my case was resolved correctly. The whole thing was way less stressful than I expected once I could actually talk to someone. I'm genuinely surprised and impressed.

One thing nobody mentioned is that the IRS usually sends a SECOND notice before moving to a Notice of Deficiency. So even though you missed the first deadline, you likely have some time before things escalate to real trouble. When I had a CP2000 a couple years ago, I completely missed the first notice (it got delivered to my old address), and only responded after getting the follow-up notice. Everything still worked out fine once I sent in the correct documentation. The IRS mostly wants the right information and their money - they're not trying to penalize people who are making good-faith efforts to resolve issues.

Dont worry too much about the deadline. I had the same panic when I missed mine by almost 3 weeks because I was in the hospital. Just make sure you have PROOF of your cost basis - like statements from your broker showing what you paid for the stocks. The IRS system often doesn't get this data electronically from brokers which is why these CP2000s for stock sales are so common.