Life insurance -- trust the company. Some types of life insurance may be treated as investments in which the growth is taxable. The company would be mailing you a 1099-R or 1099-B form. If they say its not taxable, it's not.
CP2000 -- if you agree completely with the results of the CP2000, then you can let the IRS take the money from your refund. You don't add it to your 2016 tax return, just expect that your stated refund will be reduced by the amount of the notice. However, the tax owed on the CP2000 is not necessarily correct. The IRS knows about income that you did not report but they don't know about offsetting credits you might have. You may want to prepare an amended return for 2014 just to see if you agree with the IRS. If you agree you can let them take part of your refund. But if you disagree, you would mail them an amended tax return and a letter of explanation along with a check for what you believe to be the correct amount of tax owed.
