CP2000 Notice

An IRS notice proposing changes to a filed tax return because income reported by an employer or bank doesn't match what was on the return — not a bill, and not the same sequence as a CP14 balance-due notice.

A CP2000 is an IRS notice proposing changes to a filed return because income an employer, bank, or other payer reported to the IRS doesn’t match what was on the return. It is not a bill and not an audit — it’s generated automatically by the IRS’s Automated Underreporter program, and it comes with a response form and a deadline, generally 30 days from the notice date, to agree, partially agree, or disagree.

What triggers a CP2000 notice?

A CP2000 is triggered automatically when a third party’s report to the IRS — a W-2, 1099, or similar document — doesn’t match the income reported on a filed return, per the IRS’s own explanation of the notice. No IRS employee has reviewed the return line by line at this stage; the mismatch is flagged by the IRS’s Automated Underreporter (AUR) system before a human examiner gets involved.

Is a CP2000 the same thing as being audited?

No — a CP2000 is a computer-generated notice comparing third-party income documents against a filed return, not a full examination of that return. According to IRS Topic no. 652, it proposes specific changes based on the mismatch and asks for a response; it is a narrower, more automated process than a traditional audit, even though it can still result in additional tax owed.

How do I respond to a CP2000 notice?

Compare the notice’s proposed changes against your own return and records. The notice lists exactly which income items it believes are missing or mismatched.
Decide whether you agree, partially agree, or disagree. The response form included with the notice has a place to indicate each.
If you agree, sign and return the response form by the deadline, along with payment or a payment-plan request if a balance results.
If you disagree, in whole or in part, respond in writing with supporting documentation — corrected forms, an explanation, or records showing why the third-party figure is wrong.
Respond by the deadline on the notice, generally 30 days from the notice date, to avoid the IRS proceeding to a formal assessment.

What happens if a CP2000 goes unanswered?

If a CP2000 goes unanswered, the IRS generally proceeds toward assessing the proposed additional tax, penalties, and interest as a statutory notice of deficiency — and once that additional tax is assessed and unpaid, it moves into the ordinary collection sequence described in IRS Notice Escalation: a CP14 balance-due notice, reminders, and eventually a levy notice if it’s still unresolved. Responding to the CP2000 itself — even just to disagree with documentation — is the cheaper point to resolve a mismatch than waiting for it to become an assessed balance.

Frequently asked

Is a CP2000 the same as an audit?

No. A CP2000 is generated automatically by the IRS's Automated Underreporter (AUR) program comparing third-party income documents (W-2s, 1099s) against a filed return — it isn't a full examination of the return, and it doesn't mean a return was selected for audit.