IRS CP2000 Notice: Underreported Income (Proposed Changes)
A CP2000 notice means income reported to the IRS by employers, banks, or brokers doesn't match what's on your tax return, and the IRS is proposing a change to your tax — it is not a bill and not an audit.
Deadline calculator
The CP2000 clock runs from the date printed on the notice — not the day you opened it.
Estimate only, based on the standard 30-day CP2000 window. Your notice controls — always use the specific date printed on it.
What a CP2000 actually means
The IRS computer-matches every W-2, 1099, and 1098 it receives against your return. When something doesn't line up — a missed 1099, unreported stock sale, forgotten side income — the Automated Underreporter unit sends a CP2000 proposing additional tax, and sometimes penalties and interest.
It's a proposal, not a final assessment. You can agree, partially agree, or dispute it with documentation. Many CP2000s are wrong or overstated — for example, a stock sale where the IRS assumes a $0 cost basis and taxes the entire proceeds instead of just the gain.
What to do, step by step
- 1Read the notice and find the response deadline (usually 30 days from the date printed on it).
- 2Compare the IRS's list of reported income against your return and your own records (W-2s, 1099s, brokerage statements).
- 3If the IRS is right, sign the response form and arrange payment (a payment plan is available).
- 4If it's wrong or partly wrong, respond in writing with documentation — don't file an amended return unless instructed.
- 5If you can't respond in time, call the number on the notice and request an extension — silence turns the proposal into a real bill (CP3219A Notice of Deficiency).
Common questions
Is a CP2000 an audit?+
No. A CP2000 is an automated income-matching notice, not an examination. But ignoring it leads to a Statutory Notice of Deficiency and a real assessed balance.
What happens if I ignore a CP2000?+
The IRS finalizes the proposed changes, issues a Notice of Deficiency (CP3219A), assesses the tax plus penalties and interest, and moves toward collection. Your response window is the cheapest place to fix errors.
Can a CP2000 amount be wrong?+
Frequently. Common examples: stock or crypto sales taxed on full proceeds because cost basis wasn't reported, income that was actually reported on a different line, or a 1099 that isn't yours. Documentation usually resolves it.
Received a CP2000? Get it handled.
Talk to a tax specialist about your notice — free, no pressure, no judgment.