I received a letter CP2000 from IRS for tax year 2015 - What should I do?

[Phillip1 · Accepted solution]

You need to review the notice and make sure whether you agree or disagree with the letter. CP2000 letters are sent when the IRS finds that there was a 1099, W2, or 1098 that they received which doesn't agree with the income or deductions reported on your return.

See the following from IRS - Understanding Your CP2000:

What you need to do

• Read your notice carefully—it explains the information we received and how it affects your tax return.
• Complete the notice response form whether or not you agree or disagree with the notice, the response form explains what actions to take. (Your specific notice may not have a response form. In that case, the notice will have instructions on what to do).
• Contact the business or person reporting the information, if it is wrong. Ask them to correct it, and then provide the corrected information to us.

You may want to…

• Make sure your other returns don’t have the same mistake.
• Contact us with any unanswered questions you have.
• Keep a copy of the notice for your files.
• Fill out section 3 (Authorization) on the response form to allow someone, in addition to yourself, to contact us concerning this notice. Or send us a Form 2848, Power of Attorney and Declaration of Representative to allow someone (such as an accountant) to contact us on your behalf.
• Correct the copy of your tax return that you kept for your records.
• Order a transcript of your return.
• Use this link to learn more about your payment options if you owe additional taxes.
• Use this link to learn more about payment plans and installment agreements if you can’t pay the full...
• Use this link to learn more about Offers in Compromise if you can’t pay the full amount of taxes you...

[k89438633]

if i received a CP2000 to correct my federal tax returns from last year, should i also fix my state taxes?