Is a CP2000 an Audit?
The word "proposed" is the most important one on the notice. Nothing is final yet, and you have a real right to disagree.
What a CP2000 actually is
A CP2000 is generated automatically when IRS records show income that doesn't appear on your return. It's an information-matching notice, not a formal audit, and it does three things:
- Identifies a mismatch — income a payer reported that isn't on your return.
- Proposes a change — a recalculated tax, often with interest.
- Gives you a deadline — usually 30 days to respond, agreeing or disagreeing.
Why it's not an audit
An audit is a formal examination of your return. A CP2000 is an automated cross-check — narrower, and easier to resolve. You can fully agree, partially agree, or disagree, and you can provide documents to support your position.
CP2000 calculations frequently miss things in your favor — like the cost basis of sold investments, which can make a stock sale look like pure profit when it wasn't. Don't assume the proposed balance is correct just because it's from the IRS.
How to respond
Read what income the IRS says is missing and compare it to your records. If you agree, you can sign and arrange payment. If you disagree, respond by the deadline with a clear explanation and supporting documents. Responding on time is what matters most — ignoring a CP2000 lets the proposed amount become a real bill, after which it's harder to contest.
Got a CP2000 and not sure if it's right?
Paste it into Main AI — it explains the proposed change, what income triggered it, and what to check before you agree or dispute.
Analyze your document — freeCommon questions
Does a CP2000 mean I'm being audited?
No. A CP2000 is an automated notice triggered when reported income doesn't match IRS records. It's not a formal audit and not yet a bill — it's a proposed change you can agree with or dispute.
What happens if I ignore a CP2000?
The proposed amount can become a final assessment — effectively a real tax bill — after which it's harder to dispute. Responding by the deadline, even just to disagree, preserves your right to contest it.
Can the CP2000 amount be wrong?
Yes, often. The calculation can omit things in your favor, such as the cost basis of investments you sold, making income look larger than it was. Always check the proposed figure against your own records before agreeing.
What do I do if I disagree with a CP2000?
Respond by the deadline with a written explanation and documents supporting your position. You can disagree fully or partially. Keeping copies and meeting the deadline are the keys to resolving it in your favor.