Response Desk/CP2000
IRS Notice CP2000 · Underreporter Notice

A CP2000 is a proposal — not a bill. Don't just pay it.

The IRS thinks the income reported on your return doesn't match what third parties reported. Often the IRS is partly right and partly wrong. The response is where the money is won or lost.

30 days
Typical deadline
Tier 2
$595
15 min
Free triage call
Book a triage call All notice types
What it is

What a CP2000 actually means

A CP2000 is issued by the Automated Underreporter (AUR) unit when income reported to the IRS on forms like 1099, W-2, or K-1 doesn't match your return. It proposes additional tax, plus penalties and interest.

Critically, it is a proposed adjustment. The IRS frequently double-counts basis on securities sales, ignores reported cost, or misreads a rollover as a distribution. A careful reconciliation often reduces or eliminates the proposed balance.

Why you might have received one

  • A 1099-B reported gross proceeds without cost basis
  • A retirement rollover was coded as a taxable distribution
  • A K-1 or 1099 arrived after you filed
  • Income was reported under the wrong tax year
What's at stake

If you don't respond within 30 days, the IRS issues a CP3219A (Statutory Notice of Deficiency) and the proposed tax becomes assessable. After that your only route is Tax Court. Responding now is far cheaper than fighting later.

Common mistakes we see

  • Paying the proposed amount when basis or cost simply wasn't reported
  • Sending a letter without the substantiating documents the IRS needs
  • Agreeing to part and ignoring the rest — the response must address every line
  • Missing the 30-day deadline and triggering a 90-day letter
Transparent, flat-fee pricing

You'll know the cost before we start

No hourly surprises on routine notices. We confirm the tier on your free triage call and put the fee in writing.

Tier 1
$295 flat fee

Simple notices

  • CP501, CP14, balance-due reminders
  • Notice review & deadline confirmation
  • One drafted response letter
  • Filed on your behalf
Tier 2
$595 flat fee

Underreporter & matching

  • CP2000, CP2030, AUR notices
  • Line-by-line reconciliation
  • Substantiation package assembled
  • One free follow-up within 90 days
Tier 3
from $1,495 scoped quote

Urgent & high-stakes

  • CP3219A, CP504, Letter 226-J
  • Tax Court petition support
  • Penalty abatement requests
  • Direct IRS / DOR representation
Tier 4
$350 per hour

Examination & appeals

  • Full audit representation
  • Appeals conferences
  • Complex multi-year matters
  • Quoted in writing before work begins
Common questions

Before you call us back, read this

Does a CP2000 mean I'm being audited?
No. It's an automated matching notice, not an examination. But an unaddressed CP2000 can escalate, so it should be handled with the same care.
The IRS says I owe tax on a stock sale I already reported.
This is the single most common CP2000 error. The IRS often sees gross proceeds without your cost basis. We document the basis and the proposed tax usually drops sharply.
What's the difference between a CP2000 and a CP3219A?
A CP2000 is a proposal you can dispute by mail. A CP3219A is the formal 90-day deficiency notice that follows if the CP2000 isn't resolved — your last step before Tax Court.
What does the $595 fee cover?
Full reconciliation of the IRS figures against your records, a substantiation package, the drafted response, and one free follow-up if the IRS replies within 90 days.

Respond to your CP2000 the right way

Book a free 15-minute triage call. We'll identify the notice, confirm your deadline, and quote the work in writing — no obligation.

Book a free 15-minute triage call