Receiving a CP2000 notice from the IRS can be alarming. This notice means the IRS believes income was underreported on your tax return and is proposing additional taxes, penalties, and interest.
A CP2000 is not a formal audit, but it is a serious notice that requires timely attention. Margolies Law Office represents individuals and business owners responding to CP2000 underreporting notices and works to reduce or eliminate proposed assessments.
A CP2000 is generated when the IRS Automated Underreporter system detects differences between the income reported on your tax return and information reported by third parties, such as:
If the IRS believes income was omitted, it will calculate a proposed increase in tax and send a CP2000 notice outlining the changes.
A CP2000 is a proposal, not a final bill. You have the right to agree or disagree with the findings.
However, strict response deadlines apply. Ignoring the notice can result in the IRS issuing a formal assessment and beginning collection activity.
CP2000 notices often arise from:
In many cases, the IRS calculation does not include deductions, cost basis, or adjustments that reduce the actual tax owed.
Responding properly requires reviewing the IRS calculations and comparing them to your actual records. Margolies Law Office:
In many cases, the proposed amount can be reduced significantly with proper documentation and legal argument.
If you disagree with the CP2000, a written response must be submitted before the deadline. Failure to respond may result in the IRS issuing a Notice of Deficiency, which limits your options.
Margolies Law Office helps taxpayers respond strategically to underreporting notices and prevent unnecessary assessments.
If you have received a CP2000 notice, call (469) 626-7760 to schedule a confidential consultation with Margolies Law Office and protect your rights before the matter escalates.
“ Andrew Margolies did a great job for my mom who had paid her taxes, but the IRS failed to associate the payment with her account. She kept getting letters demanding payment with accrued interest and fees even though they had cashed her check.
After Andrew started working on it, the letters stopped. We were notified there had been a credit to my mom’s account, and finally the payment was properly applied with a zero balance. She is even receiving a refund.
We’re very happy with Andrew and would highly recommend him.”
“I came to Andrew Margolies with a significant IRS issue that I had been losing sleep over for months. I spoke with Jennifer on the phone, got in the same day for a consultation, and had a full resolution within 2 business days for a reasonable price. Andrew did exactly what he said he was going to do and provided me with a thorough resolution.
Being 9 months pregnant, Andrew was extremely sensitive to my timeline urgency and was on the phone with me at 5pm on a Friday helping me with my case.
Before meeting with Andrew, I called around to 10 different offices. All of those interactions felt like a sales funnel and a money grab. I can’t explain the relief I have having chosen to work with Andrew and having a resolution within days. We’re absolutely thrilled with the value and the experience.”
“100% recommended. I had a problem regarding my tax return since the beginning of 2023 and had been trying to follow up myself until 2025 with no progress. I decided to work with Attorney Andrew and Jennifer and in less than a month my problem was solved.
Attorney Andrew is very knowledgeable with reasonable fees and Jennifer is very responsive to all requests and questions. Most importantly they have business ethics. I will not look further if I have any more tax problems.”
