CP2000 Notices

Responding to a CP2000 Notice: Step-by-Step Guide

1:48Premium Video

Written byLipai WangFounder · IRS-registered tax professional

Key Takeaways

Do not panic — a CP2000 is a proposal, not a final bill
You typically have 30 days to respond to a CP2000 notice
You can agree, partially agree, or disagree with the proposed adjustment
Never ignore a CP2000 — the IRS will assume you agree and adjust your return automatically
Always respond in writing with supporting documentation

Stay Calm and Respond

If you receive a CP2000 notice, the first step is to remain calm. This is a proposal, not a final determination. The IRS is giving you a chance to agree, partially agree, or disagree with their proposed adjustment. However, the one thing you absolutely cannot do is ignore it.

CP2000 notices typically include a 30-day response deadline. If you do not respond within this timeframe, the IRS will assume you agree with their proposed changes and automatically adjust your return, which usually means you will owe additional tax plus interest and penalties.

Your Response Options

You have three options when responding to a CP2000. You can agree with the proposed adjustment, in which case you sign the response form and pay the additional tax owed (or set up a payment plan). You can partially agree if some adjustments are correct but others are not. Or you can fully disagree and provide documentation supporting your position.

If you disagree, you should include supporting documentation such as corrected 1099s, proof of cost basis for stock sales, or evidence that income was properly reported elsewhere on your return. Always respond in writing and keep copies of everything you send.

Frequently Asked Questions

What happens if I ignore a CP2000 notice?

If you do not respond within the deadline, the IRS will assume you agree with all proposed changes. They will adjust your tax return, assess additional tax, interest, and potentially penalties, and send you a bill. Ignoring the notice removes your opportunity to dispute the changes.

Can I set up a payment plan if I agree with the CP2000?

Yes. If you agree with the proposed adjustment but cannot pay the full amount, you can request an installment agreement with the IRS to pay the balance over time.

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