Anyone who the IRS flags as submitting a federal tax return with discrepancies will receive a CP2000 notice. These notices include a proposed amount due, though it is not a final sum at this stage. It can be daunting to receive one of these notices, particularly given many people’s uncertainty about the IRS CP2000 response time.
After receiving a CP2000, it is best to work with a professional tax consultant to resolve issues, especially if the proposed amount due seems incorrect.
The CP2000 notice is a product of the IRS’s automated system, the Automated Underreported (AUR) unit. It is similar to CP2501 letters, which also highlight a discrepancy in a federal tax return without proposing an amount due.
If you receive one of these notifications, it means that the IRS received information from a third party that does not match the information you provided. This may happen when information, such as the salary your employer reports and the W-2 you filled out, does not match.
However, this system is not infallible, and the automated notices may contain technical errors. This is often the case for those trading cryptocurrency, and the system is still learning. Those who receive a notice and agree with the proposed amount can simply respond by adjusting their tax forms and paying their dues to move on.
Those who disagree with the amount or believe there has been a mistake should partner with an experienced tax consultant to begin the tax resolution process. The IRS gives recipients 30 days to respond to their notice with appropriate supporting documentation, and working with a tax professional makes this much easier.
So, how long does it take the IRS to respond to a CP2000 contradiction?
Once you submit a response to the CP2000 notice, it can take one to six months before the IRS follows up. The CP2000 processing duration depends on the complexity of the matching process and the volume of notice responses they receive in a given period. The CP2000 response waiting period will likely be longer for larger companies or those dealing with cryptocurrency.
An extended IRS notice reply timeframe typically does not delay one’s tax return, as the initial notice to resolve discrepancies is not a bill. The amount stated in the initial letter is not yet final, and once the IRS assesses an official balance, it will notify the recipient before offsetting their federal tax return.
Anyone who receives a CP2000 with which they disagree should contact a professional tax consultant to avoid IRS penalties. These experienced professionals can help recipients navigate their finances and provide supporting documents that counteract the IRS’s automated miscalculation.
It can be difficult to provide adequate support without the guidance of someone highly familiar with the IRS’s regulations and state and federal tax form requirements.
Levy & Associates offers reliable tax consultancy services and can assist recipients of a CP2000 form with their response. Whether you agree with the notice and want to be sure you submit all the correct information and dues or disagree and need help supporting your dispute, we can help. As you must respond within 30 days of receiving the notice, it is important to act quickly and contact our experienced team as soon as possible.
Let our knowledgeable team streamline the CP2000 response process to prevent unnecessary stress and potential delays. Contact our team online or call 313-447-1704 to schedule a consultation about your finances.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.