I received a CP2000 notice from the IRS where they adjusted (increased) my income by $12,000, the amount my wife and I each contributed to our IRA. We made the deductions in our tax return, but the CP2000 notice wanted to change the deductions to 0. They said their proposed adjustment was triggered by the Form 5498 documents that were reported by our financial institutions. This leaves me baffled as the Form 5498 documents from our financial institutions show that we contributed the proper amount to our annual IRA.
I called the IRS and the representative's response was for me to disagree with the CP2000 notice and send in my Form 5498 documents as proof. But I'm still confused because I don't think I completely understand the situation and/or haven't received an adequate explanation of the situation. Why would a Form 5498 that clearly shows we made our maximum IRA contributions lead the IRS to remove our deduction?
