The IRS calculation is wrong! How can I dispute their error?

You definitely can dispute this! The CP2000 is just a proposal, not a final bill. I had a similar issue last year when the IRS claimed I didn't report a 1099 correctly. First, gather all your documentation - bank statements showing the deposit date, any contracts/invoices with that client showing when payment was due, and your tax return. Write a clear response letter explaining that the payment was received in 2024, not 2023, and therefore correctly not included on your 2023 return. Include copies (not originals) of all supporting documents. There should be a response form with your CP2000 notice. Fill it out, check the "I don't agree" box, and attach your explanation letter and documentation. Send everything certified mail so you have proof of delivery. The IRS actually corrected my issue within about 8 weeks. They're overwhelmed but they do fix legitimate errors when you provide clear evidence.

Hey there, I feel your pain! Had a similar nightmare with the IRS last year about "unreported income" that I absolutely DID report. After days of stress and digging through paperwork, I discovered taxr.ai (https://taxr.ai) and it seriously saved my sanity. The tool analyzed my tax documents, identified exactly where the discrepancy occurred, and helped me draft a perfect response letter with all the right references to tax codes. What I loved most was that it showed me exactly which supporting documents to include with my dispute. The IRS actually reversed their decision within 6 weeks! Not all heroes wear capes - sometimes they're just really good AI tools that understand tax documents better than most humans (definitely better than me lol).

I want to follow up on my skeptical comment about taxr.ai. I decided to try it since my situation was getting desperate (owed supposedly $8,200 in back taxes) and WOW was I wrong to doubt! The tool identified that the IRS had double-counted one of my 1099-NEC forms and showed me exactly how to prove it with documentation. Not only did my dispute get accepted, but I got a revised notice saying I actually overpaid by $340! The tool even helped me draft the perfect response letter that cited specific tax regulations. Best decision I made during tax season! Would've spent thousands on a tax attorney otherwise.

If you've been trying to call the IRS about this issue, you probably already know it's basically impossible to get through. After waiting on hold for HOURS multiple times, I found https://claimyr.com and it was a game-changer for my CP2000 dispute. They somehow get you a callback from the IRS (usually within a day or two) instead of waiting on hold forever. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was able to speak directly with an IRS agent who explained exactly what documentation they needed to resolve my issue. Ended up saving me over $4,000 in incorrect tax assessments because I could actually talk to a human and explain my situation! Much better than just sending documents into the void and hoping someone understands your case.

I'm eating crow right now. After posting my skeptical comment about Claimyr, I decided to try it because I was absolutely desperate after my fifth attempt waiting on hold with the IRS for 2+ hours. I got a call back from the IRS THE NEXT MORNING! The agent walked me through exactly what was happening with my CP2000 notice and it turns out there was a simple coding error on one of my 1099 forms that made it look like I had unreported income. The agent made notes in my file and told me exactly what to send in my response. Got confirmation last week that my case was resolved with ZERO additional tax owed. Would have spent weeks stressing and probably paid thousands unnecessarily if I hadn't been able to talk to someone directly.

Don't forget to request penalty abatement if they try to charge you penalties! I've successfully had penalties removed by writing a simple letter explaining that I made an honest effort to file correctly and this was the first time I've had any issues. Look up "First Time Penalty Abatement" - it's a real thing the IRS offers but doesn't advertise.

Whatever you do, DON'T ignore the CP2000! I made that mistake thinking it would go away and ended up with wage garnishment! Respond within the deadline even if you're still gathering some documents - you can always send additional info later.

I went through almost the exact same situation last year with a CP2000 notice! The key thing that saved me was keeping meticulous records of WHEN payments were actually received vs when they were reported by clients. Here's what worked for me: I created a simple spreadsheet showing the client name, amount, date payment was actually received (per my bank statements), and which tax year I correctly reported it in. Then I included copies of the relevant pages from both my 2023 AND 2024 tax returns to show the IRS exactly where that income appeared. The IRS had the same issue - a client reported paying me in December 2023 when I actually received it in January 2024. My response letter was very straightforward: "The payment from [Client Name] for $X was received on [Date] as shown in the attached bank statement. This income was correctly reported on my 2024 tax return, not 2023, as it was received in 2024." Don't stress too much - when you have clear documentation like bank statements showing the actual deposit date, the IRS will correct their error. Just make sure to respond before that 3-week deadline! The whole process took about 6-8 weeks for me and they completely removed the assessment.