IRS Notice CP2000: your reported income doesn't match

What it means

First, an important distinction: a CP2000 is not a penalty notice, and it's not a bill. It's an underreporter notice. The income, payments, or credits you reported don't match what third parties, like your employer, bank, or broker, reported to the IRS on W-2s and 1099s. The notice proposes additional tax, and sometimes an accuracy penalty and interest.

Your deadline

You generally have 30 days from the date on the notice to respond, by mail or fax. Within that window you can agree and pay, partly agree, or disagree and send supporting documentation that backs up what you reported. Missing the deadline can turn the proposal into an assessment, so the date matters.

Can PenaltyLetter handle a CP2000?

Not yet, and we won't pretend otherwise. Responding to a CP2000 is a different process from penalty abatement, which is what this service does today. That means this tool doesn't handle CP2000 responses right now. A guided CP2000 response tool is in the works. If you want it, leave your email below and we'll tell you when it's ready.

What to do now

1. Read the notice and find the specific income items the IRS says are missing or different.
2. Pull your own W-2s, 1099s, and records for that year and compare them line by line.
3. Decide whether you agree, partly agree, or disagree, and gather documents for anything you dispute.
4. Respond by the date on the notice, by mail or fax. For a complex or large mismatch, consider a CPA, enrolled agent, or tax attorney.

Want the CP2000 tool when it's ready?

We're building a guided CP2000 response tool. Leave your email and we'll let you know the moment it's live.

Got a penalty notice instead?

If what you actually have is a penalty notice, like a CP14, CP501, or CP161, the screener can check whether that penalty is removable. A CP2000 is a different animal, so only use the screener for penalty notices.

Check a penalty notice →