Getting a letter from the IRS is never fun—especially if it’s a CP2000 notice. But don’t panic.

This isn’t a formal audit or demand for payment. It’s a proposed adjustment based on income the IRS believes you failed to report.

If you’re in Charlotte and received a CP2000, Polaris Tax & Accounting can help you review the notice, verify the information, and respond correctly to avoid penalties.

What Is a CP2000 Notice?

The CP2000 is sent when the income reported on your tax return doesn’t match the income reported to the IRS by third parties—like W-2s, 1099s, brokerage statements, or retirement distributions.

The notice typically includes:

  • The difference between what you reported and what the IRS sees

  • A calculation of additional tax (if any)

  • A response deadline (usually 30 days)

  • An opportunity to agree or dispute the changes

Common Reasons for a CP2000 in Charlotte

  • Missing or incorrect 1099-NEC or 1099-K for gig or freelance income

  • Forgotten stock sales or brokerage activity

  • Mistaken IRA or pension withdrawals

  • Overlooked unemployment income

  • Incorrect reporting by an employer or third party

How to Respond to a CP2000 Notice

  1. Review the Notice Carefully
    Compare it with your original tax return and supporting docs.

  2. Gather Documentation
    Pull W-2s, 1099s, bank statements, or brokerage reports to verify income.

  3. Decide Whether You Agree

    • If correct: sign and return the response form.

    • If incorrect: include a written explanation and supporting documentation.

  4. Submit by the Deadline
    Always respond before the stated deadline to avoid additional penalties.

  5. Don’t Amend Prematurely
    You may not need to file a 1040-X unless the IRS instructs you to.

Why You Shouldn’t Ignore It

Ignoring a CP2000 may result in:

  • Automatic assessment of higher tax and penalties

  • Interest accrual from the original due date

  • Increased likelihood of future audits

Even if you agree with the IRS, you must respond formally.

How Polaris Tax & Accounting Helps Charlotte Taxpayers

  • We carefully compare IRS records to your actual documents

  • We prepare the appropriate response or 1040-X if needed

  • We ensure penalties are minimized or eliminated where possible

  • We represent you directly before the IRS if the issue escalates

CP2000 vs. IRS Audit: Know the Difference

The CP2000 is not a full audit. It’s an automated mismatch letter.

However, a poor or no response can lead to an audit. That’s why it’s critical to handle it professionally—with help from a licensed Enrolled Agent like Polaris Tax & Accounting.

When to Contact Us

If you’re unsure how to read the notice, disagree with the IRS findings, or need help responding correctly—we’re here.

📞 Call 704-947-3178
📍 Serving Charlotte and all of North Carolina
🔗 Visit our Charlotte IRS Tax Help Page »

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