When the IRS Makes Mistakes
Just because they billed you doesn’t mean you owe the IRS money.
Receiving a CP2000, also known as a letter audit or a correspondence audit, is usually scary. But in most cases, you don’t actually owe any more tax money.
The IRS doesn’t always make it clear to you, but its letter audits are not the last word, according to this article.
Usually the IRS sends these letters because it thinks there’s a discrepancy between what you paid and what the IRS thinks you owe. But the IRS could be wrong. For example, it might not have all the facts right.
If you send a reply to their letter and you make a convincing case that the IRS’s claim of a discrepancy is wrong, you win.
The IRS admits that 98 percent of the letter audits it sends out require clarification, not payment.
If your letters back and forth don’t work, and you want to challenge a CP2000, contact your local taxpayer advocate (go to www.irs.gov/advocate to find yours), who provides advice and representation free.
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Tags: claim of discrepancy, correspondence audit, letter audit, taxpayer advocate
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