IRS Audits and Notices (CP2000 & Math Errors)

When the IRS Says Your Return Doesn’t Match the Records

A letter from the IRS is not always a bill—but ignoring it can turn a simple discrepancy into a formal audit or a tax bill you did not expect. Whether the IRS is questioning income reported by a third party or correcting a calculation error on your return, the clock starts ticking the moment that notice arrives.

At Alan Goldstein & Associates, we help taxpayers respond to IRS notices correctly and on time, resolve discrepancies before they escalate, and represent you if the matter becomes a full audit.

The Issue: Why the IRS Is Contacting You

Automated Underreporter Notices (CP2000)

The IRS matches what you report on your tax return against information it receives from third parties—employers (W-2s), banks and brokers (1099s), and other payers. When the numbers do not match, the IRS Automated Underreporter program generates a CP2000 notice proposing changes to your return .

A CP2000 is not a bill. It is a proposal . It shows what you reported, what the third party reported, and the resulting tax difference the IRS believes you owe. The notice may propose additional tax, or it may even result in a refund if the discrepancy works in your favor .

The most common causes include:

  • Missing income: A 1099 or W-2 you forgot to include, or did not receive
  • Incorrect basis reporting: Investment sales where the cost basis reported to the IRS differs from what you claimed
  • Withholding or credit errors: Payments or credits the IRS cannot verify

You generally have 30 days from the date of the notice to respond if you agree or disagree . If you do not respond, the IRS will send a Statutory Notice of Deficiency (CP3219A), which gives you 90 days to petition the U.S. Tax Court before the assessment becomes final .

Math Error Notices

Sometimes the IRS identifies a computational or clerical mistake directly on the face of your return—a transposed number, an incorrect credit calculation, or a deduction that exceeds statutory limits. When this happens, the IRS issues a math error notice and adjusts your return automatically.

You have 60 days to tell the IRS you disagree and provide records to correct the error . If you do not respond within that window, the adjustment becomes final. This is a shorter deadline than most taxpayers realize, and missing it can cost you the right to challenge the change before paying.

Mail Audits vs. Field Audits

If a discrepancy cannot be resolved through correspondence, or if the IRS selects your return for a broader examination, the matter may become an audit.

  • Correspondence audit: Conducted entirely by mail. The IRS requests specific documents or explanations about items on your return .
  • Field audit: An IRS revenue agent visits your home, business, or representative’s office to review your books and records in person .

The IRS generally has three years from the date you file your return to assess additional tax, though there are exceptions for unfiled or fraudulent returns . In most cases, you will only be subject to one audit per tax year .

Why Choose Alan Goldstein & Associates?

  • Deadline Protection: We track every response date so you never lose your right to challenge an IRS adjustment by missing a 30-day or 60-day window.
  • CP2000 Resolution: We review the proposed changes against your actual records, prepare a clear response with supporting documentation, and negotiate with the Automated Underreporter unit on your behalf.
  • Audit Representation: If your matter escalates to a mail or field audit, we represent you before the IRS—handling all communication, organizing your records, and presenting your position.
  • Penalty Relief: When discrepancies are resolved, we pursue abatement of penalties where grounds exist and help you set up payment arrangements if a balance remains.
  • Appeals and Tax Court: If the IRS does not accept your position, we advise you on your right to request an Appeals conference or petition the U.S. Tax Court before paying the proposed deficiency.

Take the First Step Toward Financial Freedom

An IRS notice will not resolve itself. The sooner you respond, the more options you have—and the less interest and penalties accumulate while the issue sits open.

Contact Alan Goldstein & Associates today for a confidential consultation. Let us help you respond correctly, resolve the discrepancy, and close the matter for good.