| Often a year or two after you have filed your | | | | lost money. The IRS receives a document from |
| tax return with the Internal Revenue Service you | | | | your brokerage account saying that you sold |
| will receive a letter from them which states that | | | | some stock and received say $10,000.00 as gross |
| they have changed your income and you owe | | | | proceeds. The IRS does not know that you had |
| more money in taxes. Often people will just go | | | | paid $15,000.00 for this stock so you actually lost |
| ahead and pay the IRS thinking that surely they | | | | money. All the IRS knows is that you received |
| must be correct. But before you pay the IRS | | | | $10,000.00 and did not report the income on your |
| please read the rest of this article. | | | | tax return so they think that you are hiding |
| A CP 2000 notice is not a bill from the IRS. It is | | | | something. |
| simply a request to ask for additional information | | | | So what should you do when you receive one of |
| because what you reported on your tax return | | | | these notices? First call the phone number on the |
| does not match up to what the IRS received | | | | notice and record the name and badge number of |
| from third parties. Here is how it works. | | | | the IRS agent that you speak with on the phone. |
| At the end of the year when you receive a W-2 | | | | Then tell them that you are contacting a tax |
| from your employer, your employer also sends | | | | professional to assist you with their inquiry. |
| the same information to the IRS. The IRS | | | | What you should never due is to ignore the CP |
| records this information in their massive computer | | | | 2000 notice. If the IRS does not hear back from |
| systems. This way when you file your tax return | | | | you in the designated time they will think that |
| the IRS can match up your information on your | | | | their information is correct and they will send you |
| tax return to what they have in their computer | | | | a bill. If you do not pay the bill then they will send |
| records. However often these numbers do not | | | | you a notice of deficiency and attempt to levy |
| match which results in a CP 2000 notice being | | | | your wages, bank accounts or house. |
| sent to you. | | | | It can be very overwhelming dealing with the IRS. |
| One of the most common reasons that a person | | | | When you call them you are put on hold for a |
| will receive this notice is because they sold some | | | | long time and get a different agent every time |
| stock or mutual fund shares. For instance, if you | | | | you call who makes you repeat every thing. But a |
| sell some stock and lost money on the stock | | | | qualified tax professional can cut through the red |
| then you may think that you do not have to | | | | tape and can help you quickly solve your tax |
| report anything on your tax return because you | | | | problems. |