Wednesday, April 30, 2008

Tax Help - "Oh Crap!...A CP-2000"



That's what most folks say when they receive Form CP-2000 in the mail and figure out what "little goof" triggered this notice from the IRS.

Most of the time it can be simple mathematical errors or it can be as large and "forgetting those stock trades". Regardless of the reason, they'll get you.

CP-2000 are sent to taxpayers to inform the of changes are being "proposed" to their tax return because information they reported on it doesn't match what was reported by their employers, banks and other payers.

The form will provide detailed information about those differences, the changes the IRS proposes and of course, what you can do if you agree or disagree with the proposal.

Every taxpayer can request a copy of their Wage & Income Transcript which will list every item of income which was reported to the IRS, and I strongly urge you to do so prior to responding to the notice. Just do so in a timely manner so that you meet the deadline for responding the the notice.

CP-2000 We Are Proposing Changes to Your Tax Return

Notice 609, Privacy Act Notice
Publication 5, Your Appeal Rights and How to Prepare a Protest if You Don't Agree
Publication 1, Your Rights as a Taxpayer
Publication 594, What You Should Know About The IRS Collection Process

No comments: