Should You Show Your IRS Form CP 2000 To An Enrolled Agent

Ever wonder what happens when you receive a 1099Publication 1, Your Rights as a Taxpayer
or other tax form after you have already filed yourPublication 594, What You Should Know About The
return? Usually these errors are caught by theIRS Collection Process
sophisticated computer system used by the IRS.The CP 2000 is only a proposal that offers you an
When errors are found, the IRS sends form CP 2000opportunity to disagree, partially agree, or agree with
to inform the recipient of changes the IRS is proposingthe proposed changes. The IRS has not charged any
to their tax return because information they reportedadditional tax at this point. It's important that you
on it doesn't match what was reported to service byrespond to the CP 2000 by the due date shown on
their employers, banks, and other payers. The IRSthe notice. If you don't, the IRS assumes the proposed
sends a CP 2000 to provide detailed information aboutchanges are correct and will continue processing the
those differences, the changes proposed, and what toproposal ultimately to an assessment. If you can't
do if they agree or disagree with the proposal. The CPrespond by the due date on the notice because you
2000 reflects any corrections the made to your originalneed more time to research your records, you can call
return, and considers those changes in a recalculationthe IRS to request an extension. Generally, they will
of the tax due. It is possible that these changes resultallow an extension 30 days beyond the response date
in a decrease in tax due, but usually an increase is theshown on the notice. It's important to remember that
result.additional interest and any applicable penalties will
An individual may receive the following documentsaccrue on the account during the period of the
along with the CP 2000:extension if the tax increase is correct.
Notice 609, Privacy Act NoticeWhen dealing with IRS notices, the experience of an
Publication 5, Your Appeal Rights and How to Prepareenrolled agent can be beneficial in preparing a
a Protest if You Don't Agreeresponse.