AUR CP2000 Audits

 

The IRS received income (1099, W-2, K-1, etc) or 1098 information that doesn't match what you reported on your tax return.  The Automated Under-Reporter (AUR) division of the IRS sends out a CP2000 notice to alert you of corrections that they feel are necessary and allow you the opportunity to contest any changes that would be incorrect.  The AUR uses the CP2000 notice to address about 40 different types of matching issues, and they have unsuccessfully tried to create a notice format that is able to address each different type of issue.  

 

 

• To understand changes, study last page or two (Section 3) where all the calculations are listed and compare to the information contained in sections 1 & 2.
• Proposed amount due is miscalculated about 40% of the time, so even if proposed changes are correct, the amount due often is not.
• Penalties proposed can often be waived if you present a well documented packet of information showing that your situation was difficult for what the IRS would consider "Reasonable Cause".
• Penalties can also be waived by getting IRS to correct amount due.
• If IRS issued notice based on bad information, it can be challenging to substantiate to their satisfaction what corrections, if any, actually need to be made.  If it is your word against someone else's, then IRS is more likely to believe the party that issued paperwork.
• When searching for a good Tax Attorney to help you with your case, ask them how many CP2000 notices they have handled, and how often they are successful when putting together penalty abatement packets.  The tax geeks at Orange County Tax Help, IRS Problems Resolution, Back Taxes & Debt Settlement have helped thousands of tax payers beat CP2000 Audits, and we are 100% so far when making formal requests for penalty abatement.