Got a CP2000? What the IRS letter is, in plain English

What a CP2000 is

The IRS gets copies of the income forms that other people file about you. Employers send W-2s. Banks, brokers, payment apps and online marketplaces send 1099s. The IRS then compares those forms with the return you filed.

On its CP2000 page, the IRS explains the letter this way: "The income or payment information we received from third parties, such as employers or financial institutions, doesn't match what you reported on your tax return."

Tax Topic 652 adds how the comparison happens. An automated system called the Automated Underreporter "compares the information reported by third parties to the information reported on your return to identify potential discrepancies," and then a tax examiner reviews the return.

So a CP2000 is a mismatch letter. Someone reported a number to the IRS, and your return showed a different one, or didn't show it at all.

What it is not

Two lines from the IRS are worth reading slowly.

The first, from the CP2000 page: "This notice isn't a bill and your response may be required." Both halves of that sentence matter. It isn't a bill, and it may still need an answer.

The second, from Topic 652: "The CP2000 isn't a bill, it's a proposal to adjust your income, payments, credits, and/or deductions." The IRS also says the difference "may increase or decrease your tax or may not change it at all."

In other words, the IRS is proposing a change and asking about it. Nothing on the page says the change is final.

What's on the letter

Topic 652 lists what the notice includes:

• the amounts you reported on your return
• the amounts the payer reported to the IRS
• the payer's name, ID number and the type of form (W-2, 1098, 1099)
• the proposed changes to your income, tax, credits or payments
• a response form, an envelope and a list of payment methods

Comparing your numbers with the payer's numbers, line by line, is usually how people figure out where the mismatch came from. A 1099 you forgot about, a form that was issued twice, or an amount that was already counted somewhere else all show up in that comparison.

The date matters

The CP2000 page tells readers to "Reply to the notice by the date listed." Topic 652 says to respond "within 30 days of the date of the notice or 60 days if you live outside the United States for a quick resolution."

Topic 652 also says what happens if there's no response: "If we don't hear from you by the response date on the notice, we'll send you a Statutory Notice of Deficiency." The CP2000 page puts it more simply: "If you don't reply or we can't resolve the discrepancy, we may send another notice and a bill."

That's the real reason not to leave the letter in the drawer. Nothing about it is an emergency. It has a deadline, though, and the date is printed on it.

For how dates work on other notices, see Where the deadline is on an IRS notice and why it matters.

How replies work, according to the IRS

The CP2000 page describes the general process:

• If a response form is included, the IRS says to complete and sign it and "State whether you agree or disagree with the notice and include any supporting documentation."
• The IRS lists three ways to send a reply: its Document Upload Tool, fax, or mail to the address on the notice.
• If you'd like someone else, such as a tax professional, to contact the IRS about the notice, the response form has an Authorization section for that.

Your own situation decides which of these applies. If the numbers are confusing, or if more than a little money is involved, a CPA, an enrolled agent or a Low Income Taxpayer Clinic can look at the actual letter with you. The IRS says LITCs offer help "for free or for a small fee" to people who qualify.

Why these letters are common now

The CP2000 page's "tips for next year" mention checking forms "you get from employers, banks, payment apps or online marketplaces." If you drive for an app, sell online or freelance, more of your income now reaches the IRS on a form. That makes a mismatch more likely, even when no one did anything wrong.

If you want to see how OweRight reads a letter

OweRight is an iPhone app that explains IRS letters in plain English. Our CP2000 page walks through that letter section by section: Our CP2000 page

To see what a result looks like, open a sample result. It is a fictional CP504 notice, not a CP2000, and every name, amount and date on it is made up.

Whatever you use, keep the letter, note the date, and read it next to your return.