
Got an IRS letter saying your reported income doesn't match their records? Walk through your specific situation and we'll tell you what to send, what to attach, and how long you have. Most notices resolve without penalty when you respond correctly.
Look at the upper-right corner of the letter. It will say something like "Notice CP2000" or "Letter 4464C".
CP2000 notices usually trace back to a 1099 you didn't know about, a duplicate filing, or a brokerage merger that split a consolidated form. Ledgentry tracks every 1099 you receive and flags duplicates and mismatches before they become an IRS letter. $29/mo, 14-day free trial.
A CP2000 is the IRS's "underreporter inquiry." It's NOT an audit and it's NOT a final assessment. It's an automated letter generated when their records show income from a 1099 / W-2 / 1098 that doesn't appear on your filed return.
The IRS proposes a tax change based on the missing income. You have 30 days to either agree (sign and pay) or disagree (respond with documentation). Most CP2000s resolve without penalty when responded to correctly.
Common causes for freelancers and 1099 workers: