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Rev. date: 2/28/2018

Notice of Underreported Income – CP-2000

Tax Topic 652
The IRS compares the payment information reported to the IRS by employers, banks, businesses, and other payers on income documents (Forms W-2, 1098, 1099, etc.) to the income, credits, and deductions you report on your income tax return. The Automated Underreporter (AUR) function uses an automated system for this comparison and sends out a Notice CP-2000 if you didn't report income on your return that was reported to the IRS by a payer or if it appears that payments, credits, and/or deductions are overstated. The CP-2000 isn't a bill, it's a proposal to adjust your income, payments, credits, and/or deductions. The adjustment 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, a phone number to call for assistance, and the steps you should take to respond.
In addition, the CP-2000:
Review the information on the CP-2000 carefully to verify its accuracy and so you know exactly how you should respond. On the response form, indicate whether you agree with all, some, or none of the changes the IRS is proposing. You can also authorize someone other than yourself to contact the IRS concerning the notice in the space provided on the response form.
Responding to the notice:
Don't file an amended return (Form 1040-X) for the tax year shown in the upper right-hand corner of page 1. Once the IRS receives your response, we'll make the corrections for you. If you notice the same type of error occurring 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 Should I File an Amended Return? and 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. Use the enclosed envelope to send your response form and any other necessary documents. If you've lost the envelope or it wasn't enclosed, please send your response to the address listed on the first page of the response form.
If we don't 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.