What to Do If You Disagree with a CP2000 Notice

Receiving a CP2000 notice can be stressful, especially if you believe it’s incorrect. Here’s a step-by-step guide to dispute the notice and resolve the issue.

Steps to Dispute a CP2000 Notice

1. Review the Notice: Identify the specific income or deductions in question.

2. Gather Supporting Documents: Collect pay stubs, 1099s, and other evidence.

3. Respond Clearly: Write a letter explaining the discrepancy and attach your documents.

4. File an Amended Return, if Necessary: Correct any genuine errors on your original return.

5. Request Penalty Abatement: Use the First-Time Penalty Abatement (FTA) program if eligible.
   

A taxpayer received a CP2000 notice for unreported investment income. After reviewing the notice, we discovered the brokerage had issued an incorrect 1099. We provided corrected documents to the IRS, resolving the issue without penalties.

How Arc&Ledger Can Help We specialize in resolving CP2000 disputes. Our experts ensure your response is accurate and persuasive. Contact us today for assistance.