The IRS says I did not report income. What does that mean?
It usually means the income reported to the IRS by employers, banks or payment companies did not match your return. Letters such as CP2000 propose a change and ask whether you agree. It is not a bill yet. You can agree, partly agree or disagree, and the letter explains how to respond by the date printed on it.
Compare the letter with your records
The letter lists each item the IRS matched, such as a W-2, a 1099-NEC, a 1099-K or a 1099-G. Check each one against your own records. An item may be correct, already reported elsewhere on the return, or wrong.
How people usually respond
If you agree with all changes, the CP2000 page says to sign and return the response form that came with the letter. If you disagree, the letter explains how to send a signed statement and documents. Do not file a Form 1040-X for the same issue unless the letter asks.
If the letter is a CP3219A
CP3219A is a notice of deficiency. The notice gives a 90-day period to respond, and the last day to petition the U.S. Tax Court is printed on it. Read it carefully and check that date.
Related notices
- IRS Notice CP2000: Proposed changes to your tax return
- IRS Notice CP2501: Income information doesn't match
- IRS Notice CP3219A: Notice of deficiency (90-day letter)
Related forms
- Form 1099-NEC: Nonemployee Compensation
- Form 1099-K: Payment Card and Third Party Network Transactions
- Form 1099-G: Certain Government Payments
- Form W-2: Wage and Tax Statement
- Form 1040-X: Amended U.S. Individual Income Tax Return
Guides
Read the IRS page
IRS.gov: Understanding your CP2000 notice (opens in a new tab). The IRS page and your own letter are the final word.
Frequently asked questions
Is a CP2000 a bill?
No. A CP2000 proposes a change to your tax based on information from others. It shows what you would owe if you agree. The IRS page for CP2000 is the final word.
What if the 1099 on my letter is wrong?
Gather proof, such as corrected forms or records from the payer, and explain it in your response as the letter describes. You can also ask the payer for a corrected form.
Should I amend my return?
The IRS CP2000 page says to respond to the notice rather than file an amended return for the same items. Read your letter for its instructions.
If you have an IRS letter
The OweRight iPhone app reads your letter and explains what it says in plain English. Join early access and we will let you know when it is available.
OweRight is not the IRS and does not give tax or legal advice.