CP2000 Letter from the IRS: What are your options?


If you have an IRS issue, you have a few ways to resolve it. For the most part, 4 out of 5 IRS issues that you have, the IRS is notifying you that you have a problem. They usually do that in order to just label it the CP2000 for administrative purposes. I am not going to  so not going to spend a lot of time on this, but essentially this is the administrative letter to let you know that there is a problem with your return, either it is to the positive or negative. If it positive we really don’t worry about it. If it is to the negative, obviously that becomes an issue.

What I am going to do here is really kind of talk about the various parts. You have the CP2000 so we are just going to talk about the “pay moment.” Essentially they come in and they say that there is a negative amount and you owe it. So from there you have to determine what you are going to…

  1. Simply pay it. You may really be in dispute meaning you don’t like the number they give you or you may agree. At that point you are determining that the best course of action for you is to pay. It might be because of the cost of fighting it is too high. It may be that your documentation is poor. It may be because the time and money in dealing with it just isn’t worth the effort. Consider the energy it will take to resist the collections or the effort to defend yourself — you might just pay.
  2. The other way is to decide to dispute it. If you are going to dispute it, you have to bring forward your evidence.

The CP2000 is generally triggered from third party verification. A third party verification that tells the IRS that there is an issue.

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