Explanation of IRS CP2000 notice

Provide an opening explaining CP2000 as an IRS proposed adjustment from automated third-party matching (not an audit). Describe business-specific triggers (1099-K, 1099-NEC, broker 1099-B cost-basis errors, payroll/W-2 discrepancies, partnership/S-corp K-1 mismatches).

Step-by-step instructions for immediate response and documentation checklist. Payment/collection consequences and options (installment agreement, OIC, penalty abatement).

State-level coordination section that warns readers many states will adjust based on federal CP2000; include examples and recommend contacting state DOR and amending state returns within required timeframes.

Practical templates: a sample dispute letter checklist, sample sign-and-agree response, list of forms to use (Response form included with CP2000, Form 1040-X, Form 2848), and suggested timeline and follow-up actions.

Provide an opening explaining CP2000 as an IRS proposed adjustment from automated third-party matching (not an audit). Describe business-specific triggers (1099-K, 1099-NEC, broker 1099-B cost-basis errors, payroll/W-2 discrepancies, partnership/S-corp K-1 mismatches).

Step-by-step instructions for immediate response and documentation checklist. Payment/collection consequences and options (installment agreement, OIC, penalty abatement).

State-level coordination section that warns readers many states will adjust based on federal CP2000; include examples and recommend contacting state DOR and amending state returns within required timeframes.

Practical templates: a sample dispute letter checklist, sample sign-and-agree response, list of forms to use (Response form included with CP2000, Form 1040-X, Form 2848), and suggested timeline and follow-up actions.