IRS Notice CP2000
IRS Notice CP2000: what it means and what to do
A CP2000 arrives when income reported on a 1099, W-2 or broker statement doesn't match your return. It proposes a change. It is not a bill.
What it isProposed adjustment
Respond withinUsually 30 days
If you don't respondNotice CP3219A
Why you got it
The IRS automatically matches your return against forms sent by employers, banks, brokers and payment platforms. If those show more income than your return, the system calculates the difference and sends a CP2000.
- Stock or crypto sales. The broker reported the sale proceeds but not always the cost basis, so the IRS treats the whole amount as income.
- 1099-K from PayPal, Venmo or Stripe. The form shows gross volume, including refunds and personal transfers.
- A forgotten 1099-NEC, 1099-INT or second W-2.
What to do, step by step
- Find the response date in the letter. If you need more time, call the number on the notice and ask for it.
- Compare each line of the notice with your own records: 1099s, W-2s, broker statements.
- Choose your answer on the response form: agree, partly agree, or disagree. If you disagree, attach an explanation and documents.
- Send the response in a way that proves the mailing date, and keep a copy.
Don't pay before checking. The IRS figure often leaves out your expenses or the cost of the shares you sold. The real amount may be lower, or zero.
What happens if you don't respond
The IRS sends a Notice of Deficiency (CP3219A). You then have 90 days to challenge it in Tax Court. After that the amount becomes an assessed debt, followed by bills and collection.