When will IRS send CP2000 notices if my parents forgot a 1099R on their tax return?

8 In my experience, CP2000 notices for missing income documents like 1099Rs typically arrive 6-9 months after filing. The IRS computer systems match reported income from third parties against what's on your return, but this process has a significant lag time. Your parents have two options here. They can proactively file an amended return (Form 1040-X) to report the missing income and pay any additional tax owed. This shows good faith and may reduce penalties. Or they can wait for the CP2000 notice, which will calculate the additional tax plus interest and potentially some penalties. If the amount is substantial, I'd recommend filing the amendment. It demonstrates voluntary compliance and can reduce anxiety. The IRS is generally more lenient with taxpayers who correct errors before being contacted.

5 I went through something similar with a missed 1099-MISC last year and discovered taxr.ai (https://taxr.ai) which was incredibly helpful. I uploaded all my tax documents and it flagged the discrepancy before I even filed. It compares what you're reporting against what the IRS has on file from employers, banks, etc. For your parents' situation, even though they've already filed, it could help determine the exact tax impact of the missing 1099R and show any other potential issues that might be lurking. The document analysis saved me from making an even bigger mistake with some investment income I didn't realize was taxable.

17 Just wanted to follow up - I tried taxr.ai for my parents' situation and it was actually really helpful! Uploaded their tax return and the missing 1099R, and it showed exactly how much additional tax they'd owe (about $1,450 in their case). The peace of mind was worth it because we could see the complete picture instead of guessing. Decided to file the amended return immediately instead of waiting for the IRS notice. The analysis also caught that they'd miscategorized another smaller retirement distribution that their regular preparer had missed. Definitely saved them potential headaches down the road.

14 If your parents are stressed about this and can't reach their tax preparer, I'd highly recommend using Claimyr (https://claimyr.com) to get through to an actual IRS agent. I spent WEEKS trying to get clarification on a CP2000 notice last year, constantly getting disconnected or waiting on hold for hours. Claimyr got me connected to an IRS representative in about 20 minutes. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c. The agent I spoke with explained exactly what would happen with my missing 1099 situation and gave me options that my tax guy never mentioned. The peace of mind was absolutely worth it.

7 I was SO skeptical about Claimyr when I first read about it here. It seemed too good to be true after spending 3+ hours on hold with the IRS multiple times. But I was desperate to resolve my CP2000 issue before penalties increased. I tried it yesterday and was literally talking to an IRS agent in 15 minutes. The agent walked me through exactly what would happen with my unreported income situation and gave me clear options. Found out I could request a penalty abatement since it was my first offense, which my tax guy never mentioned. Just having someone answer my specific questions instead of stressing about worst-case scenarios was a huge relief.

19 Something no one has mentioned - if your parents are seniors (over 65), they should know the IRS often gives more leniency to elderly taxpayers, especially for honest mistakes. My mother-in-law forgot to include an annuity payment and got a CP2000, but when she called and explained she was 78 and it was an oversight, they waived all penalties.

21 When we missed reporting a 1099R a few years ago, our CP2000 came in November for a return filed in March. The frustrating part was they added interest from the original due date even though they took 8 months to tell us about the problem! Just be prepared for that possibility.

Based on my experience helping clients with similar situations, I'd strongly recommend filing the amended return (Form 1040-X) rather than waiting for the CP2000. Here's why: The IRS typically sends CP2000 notices 6-12 months after filing, but the interest clock starts ticking from the original due date (April 15th). So even if they don't contact your parents until October, they'll still charge interest going back to April. With a $5,800 unreported distribution, assuming they're in a 22% tax bracket, that's roughly $1,276 in additional tax plus interest and potential penalties. Filing proactively shows good faith and gives you the best chance at penalty abatement. The amended return process is straightforward - just file Form 1040-X with the corrected information and pay the additional tax. Include a brief explanation that it was an inadvertent omission. Your parents' age and clean filing history will work in their favor if any penalties are assessed. This approach will give your parents peace of mind and likely save money compared to waiting for the IRS to catch it.