What is an IRS CP2000 notice?
CP2000 is a Notice of Proposed Adjustment. It is generated automatically by the IRS's Automated Underreporter (AUR) system when the information on your tax return does not match the information reported to the IRS by employers, banks, and other third parties (like W-2s and 1099s).
The notice tells you:
- The specific discrepancies found.
- The proposed changes to your tax return.
- The additional tax, penalties, and interest you will owe if you agree.
Why you received it
You received a CP2000 because a third party reported income (like a 1099-MISC, 1099-B, or W-2) that was missing from or incorrectly reported on your tax return.
What to do — your 30-day action plan
Step 1: Read the notice carefully and confirm the amount
Verify the tax year, the balance owed, and the deadline. CP14s have been sent in error before — but rarely. Don't assume; confirm.
Step 2: Choose a response path
You have five practical options within the 30-day window:
| Option | When it's the right move |
|---|---|
| Pay in full | You have the cash. This stops everything immediately. |
| Installment Agreement | You can pay, just not all at once. Sets up monthly payments and pauses the levy. |
| Offer in Compromise | You genuinely can't pay the full amount. Settles for less. |
| Currently Not Collectible | You're in financial hardship. IRS pauses all collection. |
| Request a Collection Due Process (CDP) hearing | You want to formally challenge the levy. Must be filed within the 30-day window. |
Step 3: File any unfiled returns
The IRS will reject any resolution request — installment, OIC, CNC — until every required return is on file. If you have unfiled returns from prior years, this is the bottleneck.
Step 4: Submit your chosen response in writing
Verbal agreements with IRS phone agents are not enforceable. Whatever you set up — installment plan, OIC, CDP hearing — needs to be on the record in writing, with confirmation.
Step 5: Document everything
Keep copies of the CP14, your response, certified mail receipts, and any IRS confirmation letters. If anything goes sideways later, this paper trail is what protects you.
What NOT to do
- Don't ignore it. The IRS does not bluff with CP14. After 30 days, your state refund is gone, and LT11 is on its way.
- Don't drain your bank account in panic. Withdrawing or hiding funds doesn't help — it can be reversed by levy and may trigger fraud allegations.
- Don't call the IRS without preparation. Anything you say is recorded. Going in without a strategy can lock you into terms that hurt you.
- Don't agree to a payment plan you can't afford. Defaulting on an installment agreement restarts collection — and it's much harder to negotiate the second time.
- Don't trust calls or emails claiming to be from the IRS. The IRS will never demand payment by gift card, wire transfer, or cryptocurrency. Real CP14s come by certified mail only.
What comes after CP2000 if you don't respond
- If you agree: Sign the response form and pay the balance or set up a payment plan.
- If you disagree: Provide documentation proving why the IRS is incorrect within 30 days.
- If ignored: The IRS will send a Notice of Deficiency (CP3219A) and eventually assess the tax.
Find the resolution path that fits your situation
If you got a CP14, the right next step depends on your finances. Use the calculator to see which IRS program — Installment Agreement, Offer in Compromise, or CNC — fits before the 30-day clock runs out.
Frequently asked questions
Is a CP2000 an audit?
No, a CP2000 is not a formal audit. It is a proposed adjustment based on document matching. However, handling it incorrectly can trigger a full audit.
Should I file an amended return (1040X)?
Usually, no. The CP2000 instructions explicitly state not to file an amended return for the issues addressed in the notice. You simply respond directly to the notice.