A CP2000 isn't a bill and it isn't an audit — but ignoring it turns into both. Here's why the IRS sent it, what your options are, and the exact deadline you're working against.
A CP2000 is an automated notice generated by the IRS's Automated Underreporter (AUR) program. It fires when income reported to the IRS by a third party — an employer's W-2, a bank's 1099-INT, a brokerage's 1099-B, a client's 1099-NEC — doesn't match the income you reported on your tax return.
It is not an audit. No agent has necessarily looked at your return by hand. It's a computer-matching program flagging a discrepancy and proposing what your tax bill would look like if the IRS's numbers are used instead of yours. That distinction matters, because a lot of people panic and pay a proposed balance that's wrong.
The most common causes we see:
The proposed amount on a CP2000 is often not the amount you actually owe. It's calculated without your deductions, your cost basis, or context the IRS doesn't have. Checking the math before responding regularly reduces or eliminates the balance.
You generally have 30 days from the date on the notice (60 if you're outside the U.S.) to respond. You have three real options:
What you should not do is nothing. Silence is treated as agreement with the IRS's proposed numbers.
If you don't respond by the deadline, the IRS moves to a Statutory Notice of Deficiency — sometimes called a "90-day letter." That starts a formal countdown toward assessment of the tax, penalties, and interest, and your options at that point shrink to paying it, entering a payment arrangement, or petitioning U.S. Tax Court. It's far cheaper and less stressful to respond correctly the first time.
We pull your actual return, cross-check it against what the IRS is claiming, and identify anything the automated match missed — cost basis, an already-reported item, a documentation gap. Where the IRS is right, we tell you plainly and help you resolve the balance in the least costly way, whether that's payment in full, an installment agreement, or another relief option. Where the IRS is wrong, we draft the response and handle the correspondence directly so you're not on hold with the IRS yourself.
A free case review tells you, in plain terms, whether the proposed balance is accurate — and what your options are if it isn't.
Get your free case reviewNo. A CP2000 is generated automatically by the IRS's Automated Underreporter (AUR) program when income reported to the IRS by employers, banks, or brokers doesn't match what you reported on your return. It's a proposed change, not an audit and not a bill.
Generally 30 days from the date on the notice (60 days if you're outside the U.S.). You can call the number on the notice to request more time if you need it to gather documentation.
If you don't respond, the IRS will assume the proposed changes are correct and move forward with a Statutory Notice of Deficiency, followed by formal assessment of the additional tax, penalties, and interest — at which point your options narrow considerably.
Not necessarily. Sometimes the mismatch is a timing issue, a duplicate report, or income that was already accounted for elsewhere on your return. A correct response can reduce or eliminate the proposed balance — which is why it's worth having someone check the math before you agree to it.