IRS Notice CP2000 means the IRS has detected a discrepancy between the income reported on your tax return and the income reported to the IRS by employers, banks, brokerages, or other third parties — and the IRS is proposing additional tax, penalties, and interest based on this mismatch. CP2000 is not an audit, but an automated underreporter inquiry, and you typically have 30 days to respond with an agreement or documentation showing the IRS is wrong. Neil Jesani Tax Resolution regularly resolves CP2000 notices by identifying reporting errors, providing missing documentation, and negotiating adjustments when the IRS's proposed changes are overstated. Key Takeaways A CP2000 notice is generated by the IRS's Automated Underreporter (AUR) program when income reported by third parties does not match your tax return A CP2000 is not an audit — it is a proposed adjustment that you can agree with, partially agree with, or fully dispute Common triggers include unreported 1099 income, W-2 discrepancies, stock sales, and retirement distributions You typically have 30 days to respond, and your response determines whether the IRS assesses additional tax Even if you partially agree, working with a tax resolution professional can help minimize the additional tax and penalties What Is IRS Notice CP2000? IRS Notice CP2000 is a proposed adjustment notice generated by the IRS's Automated Underreporter (AUR) program. The AUR system is one of the IRS's most powerful compliance tools — it compares the income, deductions, and credits reported on your tax return against information returns (W-2s, 1099s, K-1s, etc.) filed by employers, banks, brokerage firms, and other entities that paid you money during the tax year. When the AUR system detects a discrepancy between what was reported to the IRS by third parties and what you reported on your return, it generates a CP2000 notice proposing changes...