Are You Holding an IRS CP2000 Letter in Your Hand? Ouch! This letter is the way IRS says “we caught you – tax cheat.” That is how the IRS thinks. I know you are just a person with an IRS problem and we want to help.
You receive a Notice of Underreported Income – Proposed Adjustment if the IRS received information from W-2 forms or Form 1099 that doesn’t match the information you reported on your tax return. If the IRS believes that payments, credits and/or deductions are overstated on the return, they may send notice CP-2000. The adjustment(s) to the return may lead to the owing of taxes. In such a case, the taxpayer is required to make the payment immediately to avoid additional penalties and interest.
The notice includes the adjustments required, how you can respond to the notice, and an IRS phone number you can contact for assistance. It also includes:
• The tax amount you reported on your return
• The tax amount the payer reported to the IRS
• The payer’s information, including name, ID number, and tax document sent (W2, 1099, 1098, etc.)
RMS Tax Consulting has been helping people with tax problems for 37 years. We want to become your advocate and spokesman so you don’t have to talk to the IRS again.
What Can You Do When You Receive a Notice From the IRS?
According to what was reported to the IRS by the payer, the tax filer’s liability may increase or decrease. The filer has the right to agree or disagree with some or all the changes proposed by the IRS.
Have your tax documents reviewed and have the information available to determine the accuracy of the IRS’ proposal. If you agree with the changes, follow these four steps:
1. Complete and sign the response form.
2. Enclose it in the envelope provided with the notice.
3. A payment voucher is attached to the notice; it must be used to make the payment, if any.
4. Mail it to the address specified on the notice.
The notice Response form has instructions on what to do if the information is wrong. You also may want to have an RMS Tax Consulting representative contact whoever reported the information and ask them to correct the information. If you feel your personal information is being used fraudulently, RMS Consulting can help you process the forms and details you need to know. If you disagree with one or more IRS’ changes, be able to explain your reasons for disagreeing in a separate signed statement. Do not sign the notice.
If you owe taxes, the notice will indicate the total amount due. There may be penalties applied, which may not be shown on the notice. You are required to pay the full amount owed within 30 days from the date of the notice. If no amount is paid before or after the 30-day period, the IRS begins to charge additional penalties and interest on the amount due.
If you cannot make full payment due to financial restrictions, you may satisfy the amount in monthly payments using an Installment Agreement. An Installment Agreement provides an affordable way to resolve back taxes that is acceptable to the IRS.
Call Richard Schickel today for your free consultation at 520-448-3531.