CP2000

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  • Refundtalk
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    #2112

    Notice of Proposed Adjustment for Underpayment or Overpayment

    This is a common notice, and the majority of CP2000s are generated because of what you report on your tax return and what the IRS has in the database (W2s, 1099s, etc.) is different.  The CP2000 typically includes a transcript of everything the IRS has associated with your social security number.  In our experience, the proposed amount due is simply wrong- at times it is actually in your favor, but commonly an amended tax return will work out better than the IRS’s proposed balance due.

    A great example is a stock sale which was reported to the IRS.  Unfortunately, the cost basis and transaction fees don’t get transmitted.  So, you could easily sell $10,000 in stocks and the IRS will consider the entire amount as a gain, or taxable income.  This situation requires an amended tax return to offset the gain with your costs.

    Use the thread below to discuss IRS CP2000’s. Connect with others that have received a CP2000 and keep us updated on what you find out!

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