CP2000: Proposed Changes to Your Tax Return
The IRS received income reports from employers or banks that don't match your return and is proposing you owe more tax.
Deadline
60 days from notice date
Do I owe money?
Maybe
What does CP2000 mean?
CP2000 is not a bill and not an audit — it is a proposed change. The IRS received 1099s, W-2s, or other income documents from third parties that don't match what you reported. They are proposing additional tax based on the discrepancy. You have 60 days to agree, disagree, or provide documentation. Many CP2000 notices are resolved simply by explaining the discrepancy (e.g., the income was reported elsewhere on your return, or the 1099 was for basis-adjusted gains).
What should you do next?
- 1Read the notice carefully — it will show exactly which income the IRS thinks is missing and the proposed tax amount
- 2Compare the IRS's figures to your actual tax return and the source documents (1099s, W-2s)
- 3If you agree: sign and return the Response form with payment or installment agreement request
- 4If you disagree: complete the Response form explaining why and attach supporting documents (e.g., your Schedule D showing adjusted basis, or proof the income was already reported)
- 5Never ignore CP2000 — if you don't respond, the IRS issues a Statutory Notice of Deficiency (90-day letter) and assesses the tax automatically
Frequently asked questions
Does CP2000 mean I'm being audited?
No. CP2000 is an automated matching process — computers comparing third-party reports to your return. It is handled by the IRS Automated Underreporter (AUR) unit, not an auditor. Fewer than 3% of CP2000 cases escalate to a traditional audit.
I already reported this income — why did I get a CP2000?
It may have been reported on a different line than expected (e.g., on Schedule D instead of ordinary income), or the IRS computer matched incorrectly. Respond with a brief explanation and attach the relevant page of your return showing where you reported it.
What if I can't afford to pay the CP2000 proposed amount?
Don't let inability to pay stop you from responding. Respond to the notice, and if you agree with the amount, request an installment agreement. Ignoring the notice is always worse than responding without payment.
How long does CP2000 take to resolve?
After you respond, the IRS typically takes 6-12 weeks to process your response. You'll get either a Closing Letter (agreeing with you), an adjusted bill, or escalation to a Statutory Notice of Deficiency if they still disagree.
Not sure what your notice means?
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Explain my noticeLast updated: 2026-05-18