What to do in the first week after an IRS CP2000 notice

A CP2000 arrives when the income on your return does not match what employers, banks and payment platforms reported to the IRS. It looks like a bill, with a balance and a penalty, but it is a proposal. Nothing is final until you answer it or the response date passes.

Read the dates first

The response date is printed on the first page, usually 30 days from the date of the notice. If you need more time, call the number on the letter before that date and ask for an extension. Missing the date is the expensive mistake: the IRS then sends a statutory notice of deficiency, and the proposal becomes much harder to change.

Match every line

The notice lists each payer and amount the IRS thinks you left out. Pull your own records for each one: the 1099, the bank deposit and the invoice behind it. The most common errors we see are 1099-K forms counted twice, personal transfers on payment apps treated as sales, and income that was reported, just on a different line.

Agree, partly agree, or disagree

The response form has three boxes. If the IRS is right, agree and pay or set up a payment plan. If it is partly right, say which items you accept and send documents for the rest. If it is wrong, explain why in plain words and attach the evidence. Keep a copy of everything and send it in a way you can track.

When to ask for help

If the proposed amount is above a few thousand dollars, involves a business, or the letter mentions more than one year, have a professional look at it before you reply. Our notice review is $275, and in 2026 most of the CP2000 notices we answered closed with less owed than the IRS proposed.