Notice of Underreported Income – CP-2000
The last IRS report shows that 1.4 million taxpayers have underreported their income by not reporting income on W-2’s and 1099″s.
If it’s wrong contact us today for help. If its right, we can help you work a deal with the IR.
The IRS System:
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 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 shows:
• The amounts you reported on your original or amended return
• The amounts reported to the IRS by the payer
• The IRS proposed changes to the tax, credits and/or payments
• The payer’s name, ID number, the type of document issued (W-2, 1098, 1099) and the tax identification number of the person to whom the document was issued
• Based on payer documentation, the notice proposes either an increase or decrease to your tax liability
If you have any questions regarding the CP 2000 call us today.
