Just received Notice CP2000....help

[Kathy C]

What is the name of your state? WI

I just received Notice CP2000 stating that my information for wages in 2004 did not match the IRS records . It is not off by much ($312), but I am not prepared to just agree with what they are saying. The letter is stating that I have until Feb 2 to respond to the letter.

What I'm wondering is if this will affect me when I e-file for 2005 on Jan 13. Do you think this will cause a hold-up for me receiving my tax return for 2005 or create a "red flag" and have my return be rejected by the IRS? I should actually receive my tax return before that Feb 2 deadline. At that point, if after going over everything with my accountant, I will pay the amount that they are saying I owe if that is indeed what we believe is correct.

I would appreciate any info**************...!!!

[Snipes5]

You mean to say your wages are off by $312, resulting in a net tax change of maybe $47, and you are going to go over it with an accountant to make sure it's correct?

The IRS gets those numbers from what is reported by the employer. Go to your employer and ask to see what was submitted to the IRS and compare it to your return for that year.

This year's return won't reject, but yes, it may delay your refund, and they may even just take the $47 or whatever out of your refund.

Snipes

[Kathy C]

Would they take that amount out even if I haven't sent my response to the letter? I'll be filing next week, but my response isn't due until Feb 2

[Snipes5]

Probably not.

[Kathy C]

Last question, I promise. Do you think this will create a "red flag"? I know that within 48 hours after e-filing, you receive notification that it is either accepted or rejected. If it's accepted, is that usually a guarantee that you'll get the refund? Or can there be issues after that, between the time it's accepted and when the money is actually sent?

[LdiJ]

Let me add something here. The IRS gets income information not only from your employer, but from your bank (interest income) from the state government (state income tax refunds and unemployment) and from brokerages (dividends or sales of stock)...etc.

Sometimes its easy to overlook some small amount of income....or to forget that you even received the income.

So before you go to alot of effort, look at the letter and see where that extra income is coming from. The letter tells you who reported the income.

That may jog your memory. If so, then to avoid any confusion on your 2005 return, simply call the IRS and make arrangements to immediately pay the little bit of tax that may be due.

[Snipes5]

No, an IRS acknowledgement does not guarantee that you will get your refund. It means that they have received your return and your Name, SSN and Birthdate, and those of your dependents, match what they have on file.

It also means the people listed on your return have not been listed on any other return for the tax year. That is all.

Snipes