IRS CP2000 Notice — How to Respond

IRS says your income doesn't match — here's what to do.

A CP2000 notice is not a bill and not an audit. It is the IRS's automated proposal to change your tax return because income or payment information reported by employers, banks, or brokers does not match what appears on your return. You have 60 days to respond.

Why Did I Receive a CP2000?

• A 1099 form (freelance income, bank interest, dividends) was not reported on your return
• A W-2 amount was entered incorrectly or a second W-2 was missed
• Stock or cryptocurrency proceeds are missing cost-basis information
• Alimony, rental income, or gambling winnings were not included
• A retirement distribution (1099-R) was omitted or mis-entered

What Happens If You Ignore It?

If you do not respond within 60 days, the IRS treats your silence as agreement and formally adjusts your return. You will then receive a Notice of Deficiency, which requires Tax Court if you want to contest it. Acting now while you still have the CP2000 is far easier and cheaper.

How to Respond to a CP2000

1. Read the notice and identify the exact income item the IRS is questioning
2. Pull your records — locate the relevant W-2, 1099, or brokerage statement
3. Decide: do you agree the income was unreported, or do you have a legitimate explanation?
4. Write a clear response with supporting documentation
5. Mail your response to the IRS address on the notice via certified mail within 60 days

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