Episode 137: How to handle a letter from the IRS

On this episode I chat with Theresa Speights, manager of resolutions at Community Tax LLC in Chicago, about what to do it you get a letter from the IRS.

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Today's question is, "I got a CP2000 letter from the IRS. what does it mean? What do I do with it? Should I hire someone to help me or just call?"

Theresa does tax controversy work, making her the person to call if you owe money to the Internal Revenue Service to work through it and get your debts paid. 

If you get a CP2000 letter, the last thing you want to do is call the IRS, they will not be able to help you. Instead, look at page page 3 of the letter to see why they are saying you owe more tax. Once you see you want to verify that you did make that much income. If you did, did you report it in the wrong place when submitting your taxes?

IF you reported it in the wrong place, you can respond, no need to hire anyone. If you understand and accept the changes in the CP2000, you can go ahead and sign it. Make sure that anything you send to the IRS is certified and trackable.

If you did not receive that income at all you will want to hire somebody to fight this as the IRS makes fighting additional income very difficult if you're trying to prove you didn't make additional income.

A CP2000 is a form the IRS sends if you left something out, like a self employment income, debt cancelation, 401k withdrawl or a W2. It is just one of the types of letters the IRS sends, with another common one being the CP504 for when you owe the IRS money.

Check out Theresa on episode 138 of the podcast.

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Get in touch with our guest

Theresa Speights, manager of resolutions at Community Tax LLC

Check out her website https://www.communitytax.com/

Follow Community Tax on Facebook https://m.facebook.com/CommunityTaxLLC