Income mismatch & return changes

CP2000 notice — serious

A proposed change to your tax return: the IRS's computers matched your return against third-party reports, found a gap, and computed the extra tax, penalties, and interest they say follows. The average proposed balance runs around $5,400.

Serious

What this letter is

A proposed change to your tax return: the IRS's computers matched your return against third-party reports, found a gap, and computed the extra tax, penalties, and interest they say follows. The average proposed balance runs around $5,400.

Why you got it: Unreported or mismatched income is the classic trigger: a forgotten 1099, gig or platform income, stock sales reported without their cost basis (which makes the whole sale price look like profit).

What it is not

It is NOT a bill — the IRS says so in its own FAQ ('Is this a bill? No'). Nothing is assessed yet. It becomes real only if you agree, or ignore it long enough for it to harden into a notice of deficiency (CP3219A) and then an assessment.

Your first move: Don't pay it and don't trash it. Get your wage-and-income transcript, check every line of the proposal against your records, and answer by the printed response date — agree, partly agree, or disagree, with documents for anything you contest.

Your deadline, counted

Every clock runs from this date — not from the day the letter reached you.

Your options, in the order most people should try them

1. Agree — only if every line checks out

Sign the response form; the assessment and a bill (CP14) follow.

2. Partly agree (the common right answer)

Concede what's true, document what's not — basis records, corrected forms, proof of reporting.

3. Disagree fully, with paper

A documented disagreement keeps the proposal from becoming an assessment.

Your rights on this letter

  • Disagree in part — most real CP2000s are partly right and partly wrong (the stock-basis problem).
  • Ask the IRS to get a corrected information return from the payer, or get one yourself.
  • Contest the 20% accuracy penalty separately — reasonable cause and good-faith reliance are real defenses.
  • Nothing you sign here waives your Tax Court rights on a later deficiency notice.

How to respond

Use the included response form; send by the IRS document-upload tool, fax, or mail to the address on the notice. Keep the full packet you sent.

Scam check

The single most-imitated IRS letter. Verify it in your IRS online account, and pay nothing until you've verified every line — a real CP2000 needs a response, not a payment.

If you ignore it

CP3219A (statutory notice of deficiency) follows, starting a 90-day Tax Court clock. After that, the tax is assessed and collection begins — with the 20% accuracy-related penalty often included.

Where this sits on the ladder: CP3219A → CP14 →

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Sources, checked 2026-10-19: