This time of year hundreds of "CP 2000" Notices are automatically being sent out by IRS machines. The IRS is seen as infallible, but truth is:
Your IRS Notice When information returns (W2s and 1099s) sent to the IRS by banks, employers, and stockbrokers don't match up with the 1040 you filed, a CP 2000 may be sent to your mailbox. Expert CPAs, Tax Attorneys, and even IRS documents admit that these IRS Notices are sometimes sent out in error.Is Your IRS Notice Wrong?
could be wrong.
A Treasury Inspector General shows a 5% error rate on the IRS's part.
Experienced CPAs and Attorneys like Claudia A. Hill have different estimates, claiming that a third are wrong and another third are only half-right*.Don't Owe the IRS? Here's What to do:
If you believe you were sent an IRS Notice injustly, do the following:1.
Gather financial documents which prove why you do not owe the debt the CP 2000 Notice claims you owe.2
. Contact the IRS immediately with the response section of your CP 2000 to explain why the notice is unjustified.3
. If you don't feel confident contacting the IRS on your own, hire a professional who can gather necessary documentation and speak to the IRS on your behalf. Never ignore an IRS Notice
: Many people who receive an IRS Notice wrongfully will just ignore it. NEVER do this! If you ignore the notice, the IRS assumes that you agree with the changes and you probably will face the following consequences:
- Debt Grows out of control from penalties and interest
- The IRS may levy your bank account or wages to pay for the debt owed
- The IRS will assign a Tax Lien, putting your assets and property in danger
- The IRS may seize assets if necessary to collect on the amount owed More Articles on IRS Notices:Steps to Take When You Don't Owe the IRS What do IRS Notices Mean- And How Do I Respond?Watch Out: The IRS Notices are Coming Don't be Cowed by IRS Computers
*How to Stop the Machine