CP-2000
WE ARE PROPOSING CHANGES TO YOUR RETURN
If you have received this notice, it means you have omitted income from your return or the amount of income or expenses on your return does not match the amounts reported to the IRS.
The top right of page one of the notice will indicate the control number, notice number, date of the notice, primary social security or employer ID number, tax type and tax period. Page two will summarized the proposed changes to your return, including any interest and penalties.
The following pages will provide an explanation of the changes followed by a detailed listing of the items that were left off your return or did not match the amounts reported to the IRS. The more common items are 1099's for non-employee compensation and dividends or interest omitted from your return, W-2G's for gambling income and 1098's for mismatched mortgage interest.
The second to last page is a form on which you can agree in total with the changes or disagree in part or in whole with the changes. If you agree -- you can pay it in full in the envelope attached or complete the attached installment agreement request. Generally, if this is the only tax you owe and it is less than $25,000, they will allow you to pay it off over 60 months. You are encouraged to pay it off as soon as possible however.
If the amount is more than $25,000, you will likely have to provide some financial information at a later time to determine how much you can pay on a monthly basis. The notice may include a Form 433-A or 433-F for that purpose. You are encouraged to seek professional help if this is the case.
If you disagree with some or all of the adjustments, you must attach a statement and support for each item you dispute. If it involves any additional forms that would have been attached to your return had the income been reported, you should include those forms. For example, you may have forgotten about some self-employment income. However, you may have expenses to offset some or all of that income. You should complete Schedule C to show the income but also include the expenses incurred in connection with the income. You would also need to attach a Schedule SE in this case to calculate self-employment tax.
If you are not sure what to so, we would be pleased to assist you in dealing with this notice. Please call (866) 429-9650 for quick, affordable assistance.
If you ignore this notice, you will receive a Statutory Notice of Deficiency in a few weeks. See the information on that notice for an explanation of how to deal with it.
Copyright 2007 by IRSOS.com - All rights reserved.