If you received an IRS CP2000 notice in the mail, congratulations, you're getting audited.

These are what we refer to as letter audits.

A lot of individuals don't really take these so seriously. They think, oh, it's just it's not about somebody showing up at their door. It's just a letter that arrived in the mail, but they need to be taking very seriously.

It's basically the IRS saying, hey, the income or payments information that we have on you doesn't match what's actually on your tax return filing. It's important to act quick on these.

First off, don't ignore it. The clock is ticking. You usually have 30 days from the date of the letter to respond.

Second, review the documents carefully for that tax year. Compare the IRS's figure to that of your own records and see if you agree with it or disagree with it. If you agree, you'll generally just need to sign the letter and return it along with any additional payments that are required. If you can't make that payment, give us a call and we can talk to you about that and work out a deal. If you disagree, however, you want to get a professional involved.

The most difficult thing with these audits in the IRS right now is that since they are so automated and not managed by an actual person, it's extremely difficult to get the IRS to accept the information that we send to them.

Oftentimes, the IRS does not even read the information that we send and we send it via a certified mail, via fax, and we also call it in and talk to them about it over the phone.

It's obvious that the team that the IRS has working on this is not able to respond to replies that they get. They're not equipped either by training or by headcount. Currently, about 70 to 80% of these letter audits will wind up going to some type of appeal proceeding. This is incredibly frustrating for taxpayers, but it is the only way to properly ensure that the audit is handled correctly.

No matter the situation, consult a tax professional, especially if it's a large amount that's at stake. A single misstep can lead to more issues down the line and they can also open up other years. That's your quick guide for handling a CP2000.

Remember, consult a tax professional for personalized advice. Give us a thumbs up if this was helpful and don't forget to subscribe for more tax tips. If you or someone you know is having a difficult time with the IRS, you need to give us a call right now at 833-IRS-PROB. That's IRSPROB.com
yt:cc=on

свернуть