Understanding a CP 2000 Letter

1. The IRS compares the information reported by employers, banks, businesses and other payers on income documents like the Forms W-2, 1098, 1099, etc., with the income, credits and deductions you report on your income tax return.
2. A CP 2000 notice comes from the IRS and usually is because of a mismatch between this information sent to the IRS and what is reported on your tax return.
3. A CP 2000 is not a bill.
4. You need to respond to the notice usually within 30 days.  
5. The notice may not be correct. It may be a 1099 was sent to the IRS erroneously.
6. The notice may be correct but how it changes your tax return may not be.
   1. For example if you forgot to include self-employment income reported to the IRS with your tax return you may also have deductions allowed against this income.
   2. If you did not include income from the sale of stocks the gain the IRS reports may not be correct.
7. If you agree completely with the notice you do not need to file an amended return.
8. You will be charged interest the longer you wait to pay.
9. You have options if you cannot pay in full.
10. Last but certainly not least it probably is wise to consult with your accountant.