# CP2000 notice: when your income doesn't match IRS records Source: https://backtaxesdesk.com/irs-notices/irs-cp2000-notice Publisher: Back Taxes Desk (backtaxesdesk.com), independent editorial site Topic: IRS Notices and Letters Last updated: 2026-09-18 > A CP2000 notice is an IRS proposal to change your return because income or payment information from employers, banks or brokers does not match what you reported. It is not a bill. You have 30 days from the notice date, or 60 if you live outside the US, to agree, partly agree or disagree with documents. If you do not reply, a statutory notice of deficiency follows. ## Key facts - What it is: Proposed change, not a bill - Reply window: 30 days from notice date (60 outside the US) - Fastest way to reply: IRS Documents Upload Tool - If you do not reply: Statutory notice of deficiency (CP3219A) ## What is a CP2000 notice? A CP2000 notice is the IRS telling you that information it received from third parties does not match your tax return, and proposing a change as a result. Employers, banks, brokers and other payers send the IRS copies of forms such as W-2s and 1099s, and an automated system, the Automated Underreporter (AUR) function, compares them with what you filed before a tax examiner reviews any mismatch. The IRS is direct about what the letter is: not a bill, but a proposal to adjust your income, payments, credits or deductions. The notice shows each item that did not match, the tax change it would cause, and any interest and penalty it proposes. The IRS explains the variants CP2000A through CP2000E on the same page. > **The CP2000 notice meaning in one sentence:** The IRS has a form showing income or payments that your return does not reflect, and it wants you to confirm the change or show why it is wrong. ## Common causes of an IRS notice CP2000 Most mismatches come from ordinary paperwork gaps rather than hidden income. These are the situations that most often lead to a CP2000. - **A missing 1099-NEC or 1099-K** from side work that arrived late or went to an old address. - **Interest or dividends** on a 1099-INT or 1099-DIV from a small account you forgot about. - **Stock or crypto sales** reported on a 1099-B without cost basis, so the proposal treats more of the sale as income than you actually gained. - **Retirement distributions** on a 1099-R, including rollovers where the distribution was left off the return entirely. - **A second W-2** from a short job or a mid-year employer change. - **Income reported in the wrong place,** such as business receipts on Schedule C that the IRS could not match to the 1099 total. ### A worked example Say you sold shares for $10,000 and the broker reported the proceeds but not your cost. If you left the sale off your return, the notice may treat the full $10,000 as unreported. If you actually paid $9,400 for the shares, your gain was $600. Showing the purchase records turns a proposed $10,000 increase into a $600 one. Where the income is real and simply missing, the arithmetic is straightforward. A forgotten $1,500 of bank interest taxed at a 22% marginal rate adds $330 of tax, plus any interest the notice shows. ## Your three response options for a CP2000 Every CP2000 comes with a response form. The IRS asks you to reply by the date on the notice, which topic 652 puts at 30 days from the notice date (60 days if you live outside the US). 1. **Agree.** Sign the response form (both spouses for a joint return) and pay the amount, or set up a payment plan if you cannot pay it all. The IRS says paying within 30 days stops additional interest, and possibly penalties, from building. 2. **Partly agree.** Mark the box for the items you accept and those you dispute, then explain and document the disputed ones. 3. **Disagree.** Send a signed statement explaining why, plus documents such as a corrected 1099, brokerage cost records or proof that the income was reported elsewhere on your return. If the notice is right but you also have other income, credits or expenses to report for that year, file Form 1040-X and write CP2000 across the top. For a step-by-step reply with example wording, see our guide on [how to respond to a CP2000](https://backtaxesdesk.com/irs-notices/how-to-respond-to-cp2000). ### How to send the reply The IRS calls its Documents Upload Tool the fastest way to reply, digitally and securely. Fax and mail also work; use the fax number or address listed on your notice. Keep proof of the date you sent it. ## What happens if you do not respond to a CP2000 Silence lets the proposal stand. If the IRS does not hear from you by the response date, it sends a Statutory Notice of Deficiency, usually the [CP3219A](https://backtaxesdesk.com/irs-notices/irs-notice-cp3219a). That notice gives you 90 days (150 if addressed outside the US) to petition the US Tax Court, a deadline that cannot be extended. The court's filing fee is $60, and it can be waived. If the 90 days also pass, the IRS can assess the tax and it becomes a balance due, starting the billing letters that begin with a CP14. Our page on the [notice of deficiency](https://backtaxesdesk.com/irs-notices/notice-of-deficiency) explains what to do if you reach that stage. ## CP2000 versus an audit A CP2000 is a document-matching proposal. It targets specific lines where a third-party form and your return disagree, and it can often be settled with one reply and a few documents. An audit is a broader examination. The IRS conducts audits by mail, in an office or in the field, and notifies you of one by mail with a letter that says it is an examination. Returns are chosen for audit by random selection, computer screening or links to related cases. If you get an audit letter instead, see our guide to the [IRS correspondence audit](https://backtaxesdesk.com/irs-audits/irs-correspondence-audit). ## Is a CP2000 notice a scam Real CP2000 notices are common, but fake ones exist. A genuine notice arrives by mail, names a tax year you filed, lists specific payers and amounts you can match to your records, and directs payment to the United States Treasury. Check it against your IRS online account and your own copies of the forms it lists. Be wary of a letter that pushes you to call a number not found on IRS.gov, demands a gift card or payment app, or threatens arrest. Our page on [IRS letter scams](https://backtaxesdesk.com/tax-help/irs-letter-scam) covers the warning signs, and the [IRS notices hub](https://backtaxesdesk.com/irs-notices) shows where CP2000 fits among other letters. ## Common questions ### What is a CP2000 notice? It is an IRS proposal to change your return because income or payment data from employers, banks or brokers does not match what you reported. The IRS states that it is not a bill. ### Is a CP2000 an audit? The IRS treats it as a proposed adjustment from automated matching, not an examination. It covers only the mismatched items, and you settle it by agreeing or sending documents by the reply date. ### How long do I have to respond to a CP2000? 30 days from the date on the notice, or 60 days if you live outside the United States. If you need more time, send an extension request by upload, fax or mail before the reply date. ### What happens if I ignore a CP2000? The IRS sends a Statutory Notice of Deficiency. If you then neither agree nor petition the Tax Court within 90 days, the proposed tax can be assessed and billed. ### Should I file an amended return for a CP2000? Only if you have other changes for that year beyond what the notice lists. In that case file Form 1040-X with CP2000 written at the top and send it with your response; otherwise the signed response form is enough. ## Sources - [Understanding your CP2000 notice](https://www.irs.gov/individuals/understanding-your-cp2000-notice) - [Topic no. 652, Notice of underreported income, CP2000](https://www.irs.gov/taxtopics/tc652) - [Understanding your CP3219A notice](https://www.irs.gov/individuals/understanding-your-cp3219a-notice) - [IRS audits](https://www.irs.gov/businesses/small-businesses-self-employed/irs-audits) - [US Tax Court, starting a case](https://www.ustaxcourt.gov/petitioners_start.html)