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Rev. date: 11/23/2015

Notice of Underreported Income – CP-2000

Tax Topic 652
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. The Automated Underreporter (AUR) function sends out a Notice CP-2000 if you did not report income reported to the IRS by a payer or if it appears that payments, credits and/or deductions are overstated. The CP-2000 is not a bill. It is a proposal to adjust your income, payments, credits, and/or deductions. This may result in additional tax owed or a refund of taxes paid.
The first page of the notice provides a summary of proposed changes to your tax, the steps you should take to respond, and a phone number to call for assistance. In addition, the notice:
Review this information carefully to verify its accuracy and so you know exactly how you should respond. On the response form, you should indicate whether you agree with all the changes, agree with some of the changes, or do not agree with any of the changes the IRS is proposing. The response form also allows you to authorize someone other than yourself to contact the IRS concerning the notice, and the notice provides payment options.
Responding to the notice:
Do not file an amended return (Form 1040-X) for the tax year shown in the upper right hand corner of page 1. The IRS will make corrections for you after we receive your response. If the same or other errors occurred in any other tax years, you may wish to file an amended return for those years in order to prevent or reduce the accrual of penalties. See Tax Topic 308 for more information about amended returns.
You must respond within 30 days of the date of the notice or 60 days if you live outside the United States. Send your response, a copy of the notice you received, and any other necessary documents with the enclosed envelope. If you have lost the envelope or it was not enclosed, please send your response to the address listed on the first page of the response form. If you are making a payment, use the provided payment voucher to ensure correct application to your account.
If there is a proposed balance due and we do not hear from you within the 30 or 60-day period, AUR will issue a statutory notice of deficiency and additional interest and penalties will be charged as appropriate.