If your tax returns don’t match the records that the IRS has on file, then you’ll receive a CP2000 notice. Also known as an underreporter inquiry, the notice states that you can face penalties, such as taxes or interest, because of discrepancies in the information filed under your Social Security Number. Your situation can also grow more complicated depending on the number of returns and the amount the IRS is contesting.
However, there isn’t someone in an office checking every digit between your tax return and IRS files. CP2000s are computer generated and issues can often be resolved without facing penalties. With the help of an experienced tax attorney, your penalties can often be reduced or negated completely.
How Should You Respond to a CP2000?
First, you should do some fact checking to see if you actually underreported your income. Compare any and all forms under your Social Security Number with your tax return to see if you left anything off. From there, you can choose how to agree with the IRS’s assessment, partially agree, or disagree.
Then you need to formally respond to the IRS. If you agree with their notice, send back the CP2000 response form along with payment. But if you partially agree or disagree with the CP2000 notice, you have to mail your own response to the IRS with documentation that proves your side.
CP2000 Response Letter Sample
If you disagree with the IRS’s assessment, it’s imperative to respond as promptly as possible and with all the evidence that you can gather. Waiting until after the penalty or fine has been assessed only complicates the situation further. The attorney’s at Wiggam & Geer are here to help you respond to your CP2000 notice.
Have Questions? Call the Experienced Tax Attorneys at Wiggam & Geer
If you’ve received a CP2000 notice from the IRS and need assistance on how to proceed, then we can help. The experienced attorneys at Wiggam & Geer can help you navigate the situation, recommend the best course of action, and assist you in dealing with the IRS or the Georgia DOR. Contact metro Atlanta’s top tax and bankruptcy attorneys by clicking here or giving us a call at (404) 609-1300.