IRS / State Tax Authority Notice

You get a CP2000 notice when your tax return doesn’t match income information the IRS has about you. When your tax return doesn’t match income information the IRS has (like Forms W-2 and 1099), the IRS sends a notice. It’s usually a CP2000 notice, also call an underreporter inquiry.

1. Evaluate your situation and decide on the right response.

Start by validating that you owe more taxes. To do that, you’ll need to determine whether you correctly reported the income in question on your tax return. Here’s how:

• Gather all the information statements under your Social Security Number. These are the forms you get at tax time reporting your income for the year (like W-2s and 1099s). Compare those statements with your tax return to see whether you left any income off your return.

• If so, you’ll need to properly calculate any additional tax that you may owe. Keep in mind that you also might have additional deductions that factor into the new tax calculation.

• Determine whether you agree, partially agree or disagree with the CP2000 notice.

2. Respond to the IRS.

• If you agree with the notice, send the CP2000 response form back to the IRS with payment (if applicable). If you can’t pay the entire amount, you can request an installment agreement with your CP2000 response.

• If you partially agree or disagree with the CP2000 notice, you’ll need to compile and mail a response to the IRS with documents proving your position. You can attach a corrected return to help clarify your position, but don’t file an amended return. If the IRS accepts your explanation, the IRS will correct your return.

• You can also address any proposed penalties in your response to the underreporter notice.

• If the IRS rejects your response, consider appealing the decision.

3. Prevent future underreporting and resulting penalties.

• After about eight weeks, call the IRS or analyze your transcripts to confirm that the IRS resolved your issue.

• To avoid penalties on more recent returns, analyze your information statements to determine whether you made the same error in other years. If necessary, you can file an amended return on these years to avoid the additional 20% accuracy penalty.

For future returns, gather all your information before filing. You can request your information statements from the IRS (called wage and income transcripts). But beware, wage and income transcripts don’t contain all your Forms W-2 and 1099 until late May.

Tax relief is a generalize term that covers dozens of tax laws and program create by the IRS and State taxing authorities. For instance, one may have their debts reduced by up to 99% of what owed. Penalty abatement is another commonly used program that allows for a reduction in penalties and in more rare cases a reduction of interest. Tax relief isn’t only limited to individual debts; however, to any business entity. Contact us today to find out which program you qualify for.

There are many different ways in which a business or individual may qualify to receive help.  There are three important factors that the IRS looks at when reducing a tax bill and these are: Income, expenses and assets. Another example could be health issues, emotional distress, bad accounting advice, and natural disasters to name a few.  To view a more detailed explanation of the different tax laws please view our services tab.

Depending on the complexities involved, case completion can vary from one week to 120 days. This mainly depends on how quickly our clients can return documentation and what type of program they qualify for. We have recognized for having the quickest turn around time in the industry amongst our competitors.

Taxpayers can work with the IRS directly to resolve tax issues by calling the IRS tax help number: (800) 829-1040. In other words, you can hire a tax professional to help you navigate the complexities of the IRS to take care of tax issues quickly with minimal effort on your part! Here are the different kinds of tax professionals to refine your search. Enrollment Agent: Individuals licensed by the IRS to provide all kinds of IRS tax help services. It is including representation in audits, tax garnishment help, and tax debt resolution. Certified Public Accountant: CPAs licensed by their practicing state boards of accountancy, and must pass their Uniform CPA Examination. Attorney Tax attorneys licensed by state courts, the District of Columbia, and organizations such as the state bar. In general, tax attorneys specialize in a certain area of tax law and can help taxpayers with services from tax preparation and planning to representation when filing a lawsuit with the IRS. All three of these tax professionals must complete a certain amount of ongoing continuing education hours to keep their certifications active — and hold unlimited representation rights. For help filing tax returns, taxpayers can also seek assistance from Annual Filing Season Program Participants and PTIN Holders. These individuals are authorized to prepare tax returns but hold no professional licenses. At Community Tax, we ensure our team of professionals provides the highest quality support to our clients. Thus, we hire the best-enrolled agents and CPAs in the industry and take steps to keep their certifications and practices updated — always.

Whether you need help paying tax debt, preparing your tax return, or have found yourself in need of representation in front of the IRS — you’ll need help from a trusted tax professional.
Before hiring an individual or company to help you with IRS tax issues, ask them the following:
What certifications do you hold?
Which IRS tax issues are you licensed to resolve?
Are you listed on the IRS directory of tax professionals?
Do your experts participate in continuing education?
If you need help with an IRS tax issue, our certified team of professionals is here for you. From help paying taxes owed to dealing with IRS problems, Community Tax can help you identify the best way to go about resolving every kind of tax issue. Let us do the heavy lifting, and call us today to start your free tax help consultation.

It depends.

There are many different kinds of tax professionals that are specifically trained to address certain issues like help paying taxes owed, tax lien help, or tax return preparation. When hiring an individual or company to help you with the IRS, it’s important to do your research so that you hire the right person or company for the job!

Yes, we licensed to represent clients in all 50 states.  Everything with the IRS and State taxing authorities done through phone, fax and email.  Most people don’t know that hiring someone that’s not local to you is in fact cheaper. On other words, you don’t have to pay an hourly rate to have representation. Thus, 90% of business these days done through different methods of technology.