CP2000 Notice: What It Means and What to Do

A CP2000 notice is a letter from the IRS. It says the income information the IRS received does not match what you reported on your return. Your employer, bank, or another payer sent the IRS a form, such as a Form W-2 or a Form 1099, that shows an amount you did not report. The notice proposes a change. That change could raise your tax, lower it, or leave it the same.

The notice is not a bill. But it does need a reply. IRS: Understanding your CP2000 series notice

Find the reply date first

The notice lists a date to reply. Write it down. If you do not reply, or the IRS cannot resolve the difference, it may send another notice and a bill. Interest accrues until a balance is paid, and penalties may apply.

Step 1: Compare the notice with your records

Check each income amount in the notice against your own forms and bank records. Look at every Form W-2 and Form 1099 you received for the year. Ask two questions: did I receive this income, and did I report it on my return?

If you need a copy of the return you filed, you can request a transcript. Also check your prior-year returns. If they have the same issue, the IRS says to file an amended return for each of those years.

Step 2: Choose your path

The IRS gives three paths, depending on your answers:

You agree, and you have nothing else to report. Follow the instructions in the notice. You do not need to amend your return.
You agree, but you have other income, credits, or expenses to report. Complete Form 1040-X, Amended U.S. Individual Income Tax Return. Write "CP2000" across the top. Send it with the notice's response form, and choose a reply option.
You disagree. On the response form, say that you disagree. Include documents that support your position.

If your notice has no response form, follow the instructions printed in the notice.

How to send your reply

The notice lists three reply options:

Upload. This is the fastest option. Upload JPG, PNG, or PDF files, using the access code printed on your notice.
Fax. Use the fax number for the IRS office listed at the top left of your notice. If you use an online fax service, check its privacy and security policies first.
Mail. Send it to the address in the top left corner of the first page of the notice.

Keep a copy of everything you send, along with proof of how and when you sent it.

If the notice shows money due

If you can pay, pay by the date listed. If you cannot pay the full amount, pay as much as you can and look at payment options on IRS.gov. The IRS suggests you apply for a payment plan or an offer in compromise if you cannot pay in full. Our CP14 balance-due post explains those options in more detail.

Get help

Someone to contact the IRS for you about this notice: complete the Authorization section on the response form.
A tax professional to act for you on this or any other matter: send Form 2848, Power of Attorney and Declaration of Representative.
More time: send your extension request with a reply option.
Free help: the IRS says you may be eligible for help from the Taxpayer Advocate Service.
Identity theft: if someone used your name and Social Security number, send your reply with Form 14039, Identity Theft Affidavit. Our identity theft and IP PIN post covers the basics.

Worked example

Illustration only, with made-up round numbers: Maria receives a CP2000 notice. It says her bank sent the IRS a Form 1099-INT for $400 of interest that is not on her return. Maria finds the form in her email. The bank is right. She had not reported the interest, and she has no other changes to make.

Maria agrees with the notice. She follows its instructions, pays any amount due by the date listed, and keeps a copy of the notice and her reply. She does not need to file Form 1040-X, because she has nothing else to change.

Common mistakes

Setting the notice aside because it says it is not a bill. The IRS says a response may be required.
Replying only by phone. The reply options listed on the notice are upload, fax, and mail.
Amending without the notice. If you file Form 1040-X for a CP2000, write "CP2000" on top of it.

Checklist

Write down the notice number and the reply date.
Compare each income line with your Forms W-2, Forms 1099, and bank records.
Choose one path: agree and follow the notice, agree and amend, or disagree and explain with documents.
Reply by upload, fax, or mail. Keep copies and proof.

General information, not advice for your return.

Sources: IRS, Understanding your CP2000 series notice (https://www.irs.gov/individuals/understanding-your-cp2000-series-notice); IRS, Publication 5181, Tax Return Reviews by Mail (https://www.irs.gov/pub/irs-pdf/p5181.pdf); IRS, Form 1040-X (https://www.irs.gov/forms-pubs/about-form-1040x); IRS, Form 2848 (https://www.irs.gov/pub/irs-pdf/f2848.pdf); IRS, Form 14039 (https://www.irs.gov/pub/irs-pdf/f14039.pdf); IRS, Payment plans (https://www.irs.gov/payments/payment-plans-installment-agreements) This is general information, not advice about your specific return.

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