CP2000: Proposed changes to your return

What it means

The IRS compared your return with the W-2s, 1099s and other forms that payers sent it, and something does not match. The notice lists each difference and the extra tax, interest and penalty the IRS proposes.

A CP2000 is not a bill and it is not an audit. It is a proposal, and you can agree with it, agree with part of it, or disagree and send proof. Often the mismatch has an explanation the IRS cannot see, such as cost basis on a stock sale or a rollover that was reported as a distribution.

What to do now

1. Find the response date and the response form that came with the notice.
2. Compare each item on the notice with your return and your own records.
3. If you agree, sign the response form and pay or set up a payment plan. You do not need to amend unless you have other changes to report.
4. If you disagree, explain why on the response form and attach proof, such as a corrected 1099 or your cost basis records.
5. Send the reply the way the notice says: online upload, fax or mail. Keep a copy.

Common mistakes

• Paying the full amount without checking it. Missing cost basis can make a stock sale look like pure profit.
• Filing an amended return instead of answering the notice.
• Letting the date pass. A missed reply moves the case toward a formal deficiency notice.

Questions

Is a CP2000 an audit?

No. The IRS calls it a proposal to change your return, based on information from payers. You answer it by mail, fax or upload.

Can the amount go down?

Often, yes. When the IRS is missing cost basis, a rollover code or an expense, a documented reply can reduce or remove the change.

Can Coastal Tax handle this notice for me?

Yes. Paige Fernald is an Enrolled Agent, so with your signed Form 2848 she can speak to the IRS for you, pull your transcripts and answer the notice.

Checked against the agency's own guidance on October 27, 2026: www.irs.gov. This page is general information. Your notice's own dates and instructions come first.