If you`ve received a CP 2000 notice from the IRS, it means they`ve found errors or discrepancies in your tax return. It`s important to take action as soon as possible to avoid further penalties and interest.
One option for resolving the issue is to enter into an installment agreement with the IRS. This allows you to pay the amount owed over time, rather than all at once.
To set up an installment agreement for a CP 2000 notice, you`ll need to file Form 9465 – Installment Agreement Request. This form asks for information such as your monthly income and expenses, as well as the amount you`re able to pay each month towards the tax debt.
It`s important to note that interest and penalties will continue to accrue on the amount owed, even while in an installment agreement. However, entering into an agreement can help you avoid more severe collection actions such as wage garnishment or bank levies.
If you`re unable to make the minimum monthly payment required for an installment agreement, you may be able to request a partial payment installment agreement or an installment agreement based on currently not collectible status.
It`s also recommended to work with a tax professional or attorney when dealing with a CP 2000 notice and installment agreements, as they can provide guidance and assistance in navigating the process.
In summary, if you`ve received a CP 2000 notice from the IRS, don`t panic. Consider entering into an installment agreement to resolve the issue and avoid more severe collection actions. Make sure to file Form 9465 and consider seeking professional assistance.