If you're a Marylander who has filed and paid your taxes on time, then spring should be about going to Orioles games, the Flower Mart, or even braving the crowds to go to the Tidal Basin to see the cherries. So, it may come as a shock to receive any notice from the Internal Revenue Service (IRS). Why might you receive an IRS CP2000 Notice, and what does it mean? You might even wonder if it's a legitimate notice or perhaps it's some phishing scam.

First off, an IRS CP2000 Notice is not something that you need to panic over immediately. But it is a notice you can't ignore. Let's discuss what the notice is and what you should do if you receive one. 

HOW TO IDENTIFY THE CP2000 NOTICE 

A CP2000 Notice will state that the IRS has recalculated the taxes you owe and is proposing a new amount.

The notice can be recognized by the following:

It will have the Department of Treasury and IRS address to the far left.  

A box on the right of the notice will contain the notice number (CP2000), the tax year it pertains to, the date, your Social Security Number, a control number, and phone numbers to reach the IRS.

In bold, there will be a line stating “Proposed amount due: $XX” and another box summarizing your account status.

WHAT A CP2000 MEANS

First off, the CP2000 Notice is not a bill, per se. Instead, it is a notice that the IRS has concluded that you owe a different amount in taxes than you had reported on an income tax filing.

The IRS may send a CP2000 notice because there was a mistake on your return—even a typo or math error.

The IRS also sends a CP2000 if there's a discrepancy between your return and a third party's filings (such as your employer or a financial institution).

It's even possible that the CP2000 is a notification that you've overpaid your taxes and you have a refund coming to you.

IF YOU GET A CP2000, WHAT YOU NEED TO DO 

First, read the notice closely—particularly the deadline for a response included on the notice.

If the IRS says you owe an additional amount, and you agree with the recalculation, you can return the form and pay the debt without waiting for a bill.

If you agree with the debt but can't pay it, you may be able to negotiate a payment plan or other settlement.

If you don't agree with the new calculation, you can dispute it by providing documentary evidence to demonstrate why your filing was correct and their notice is in error.

HOW AN EXPERIENCED TAX ATTORNEY CAN HELP 

If you have received a CP2000 Notice and disagree with the calculation, a tax attorney can review your tax filings and liability to help you prepare the best possible challenge to the notice.

If you agree with the change but are unable to pay the amount, a tax attorney can help you negotiate with the IRS. An attorney can help you work out a settlement. They can also often get a tax debt reduced, even to zero, as Gabaie & Associates were recently able to do for one of the firm's clients.

Maryland tax attorney Gabaie & Associates has offices in Baltimore, Annapolis, Rockville, and Columbia, and Juda Gabaie specializes in helping business owners with taxes. We can review your current tax liability, help you work with the IRS to resolve any debt and come up with ways to help you avoid future issues.  

Contact Gabaie & Associates, LLC today by calling us at (410) 358-1500 or by emailing us to schedule a free consultation.