Key Takeaways
- Do not panic — a CP2000 is a proposal, not a final bill
- You typically have 30 days to respond to a CP2000 notice
- You can agree, partially agree, or disagree with the proposed adjustment
- Never ignore a CP2000 — the IRS will assume you agree and adjust your return automatically
- Always respond in writing with supporting documentation
Stay Calm and Respond
If you receive a CP2000 notice, the first step is to remain calm. This is a proposal, not a final determination. The IRS is giving you a chance to agree, partially agree, or disagree with their proposed adjustment. However, the one thing you absolutely cannot do is ignore it.
CP2000 notices typically include a 30-day response deadline. If you do not respond within this timeframe, the IRS will assume you agree with their proposed changes and automatically adjust your return, which usually means you will owe additional tax plus interest and penalties.
Your Response Options
You have three options when responding to a CP2000. You can agree with the proposed adjustment, in which case you sign the response form and pay the additional tax owed (or set up a payment plan). You can partially agree if some adjustments are correct but others are not. Or you can fully disagree and provide documentation supporting your position.
If you disagree, you should include supporting documentation such as corrected 1099s, proof of cost basis for stock sales, or evidence that income was properly reported elsewhere on your return. Always respond in writing and keep copies of everything you send.
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