You Can Fight The IRS Tax Audit Notice CP 2000 for Underreported income.

When a tax return’s information doesn’t match data reported to the Internal Revenue Service by employers, banks and other third parties, the IRS will send a letter to the taxpayer.

The letter is called an IRS Notice CP 2000, and it gives detailed information about issues the IRS identified and provides steps taxpayers should take to resolve those issues and this is called the Underreported Tax Audit Notice.

CP2000 notices and what you need to know:

a.The IRS is found that third-party documents that they have received on behalf of your Social Security number do not match up to your tax return,

b.This is not a tax audit but in matching income audit. IRS is not auditing your tax return just the income that you say you have reported.

c. You as a taxpayer always have the right have the right to contest penalties and appeal a CP2000 determination.

What You Need To Do To Avoid Paying the Tax

1. The first thing you do is to analyze what the Internal Revenue Service is sending you and make sure whether the information you have received by their correspondence is correct.

2.If it is not correct you need to send timely certified mail back to the IRS telling them this the information is in error,

3.I suggest you call the entity that sent the information to IRS to correct the information with the IRS SAP,

 4. If the IRS is correct you are going to the tax balance IRS is proposing and you can pay it in full or you can make a payment agreement with the Internal Revenue Service.

5. Sometimes the document is partial correct

The IRS reminds taxpayers this letter isn’t a formal audit notification but a letter to see if the taxpayer agrees or disagrees with the proposed tax changes.

Taxpayers should respond to the CP2000 letter, usually within 30 days from the date printed on the letter, if not the assessment stands.

The IRS provides a phone number on each letter.

IRS telephone agents can explain the letter and what taxpayers need to do to resolve any discrepancies. Keep documented records with ID numbers if IRS employees.

The IRS will send another letter to the taxpayer if the taxpayer doesn’t respond to the initial notice or if the IRS can’t accept the additional information provided.

IRS will follow-up letter is called an IRS Notice CP3219A, Statutory Notice of Deficiency.

This letter gives detailed information about why the IRS proposes a tax change and how the agency determined the change.

You have the option of going to appeals and or tax court.

Remember, follow up timely and with certified mail.