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  • Writer's pictureSean Sadeghi CPA, EA,

How to deal with the IRS notice CP2000: “Under-Reported Income

Updated: Feb 1, 2023

The IRS runs their matching program late in the tax year and inserts "flags" into the account transcript indicating a return has been flagged for unreported income (Code 922). About 6 months after the Flag is added to the Account Transcript, the CP2000 Letter is sent.

Tax Professionals can monitor the account transcripts, detect the Code 922, analyze the return, compare it against the IRS Wage and Income Transcript and offer a complete and accurate amended return 6 months BEFORE the CP2000 letter is sent, eliminating the potential 20% penalty and reducing the interest expense.

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