Step-by-step playbook for handling an IRS CP2000 notice: pull transcripts, identify the mismatch, reconstruct income, prepare the response, and submit.
Request the Wage & Income transcript and Account transcript for the tax year in question. Compare what the IRS has on file against what was reported on the return.
Compare the CP2000 proposed changes to your records. Determine whether the IRS is correct, partially correct, or incorrect. Common causes: missing 1099, duplicate W-2, incorrect basis, or timing difference.
If the IRS is correct, calculate the actual tax impact including additional tax, interest, and penalties. If the IRS is incorrect, gather documentation that supports the original filing position.
Write a clear response letter that addresses each item in the CP2000. Include supporting documentation organized by issue. If agreeing to changes, include Form 5564.
Send the response via certified mail or fax with confirmation. Log the response date, method, and expected timeline in your case tracker. Set a follow-up reminder for 60 days.
SOLO includes the templates, checklists, logs, and SOPs to execute this workflow consistently across every engagement.