No one likes surprise letters from the IRS. Fortunately, there are steps you can take to avoid receiving a CP2000 notice. Here’s how to keep your taxes accurate and avoid unnecessary stress.
What Causes CP2000 Notices? CP2000 notices typically result from:
Forgetting to include a W-2 or 1099 on your tax return.
Reporting incorrect amounts for income or deductions.
Errors in reporting investment income or stock sales.
Best Practices to Avoid Notices
Double-Check Your Income Statements: Make sure all W-2s, 1099s, and other income forms are included.
Keep Accurate Records: Save receipts, investment statements, and other documents.
File Early and Review Thoroughly: Filing early gives you more time to catch errors.
One of our clients forgot to include a 1099-R for a $20,000 retirement distribution. We identified the error before filing and amended their return, avoiding a CP2000 notice and penalties. How Arc&Ledger Can Help We offer proactive tax planning and transcript monitoring services to keep your taxes accurate. Contact us to learn more.
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