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We prepare most type of tax returns:

Individual. 

S Corporation.

C Corporation.

Partnership.

Payroll.

Amended.

Gary Bode, CPA is a Master's Degreed, nation wide accountant offering tax and business services. Member of AICPA and NCACPA. Our virtual office provides excellent service to long distance and international clients. Call (910) 399-2705 for a free phone consult.

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Client Testimonials

I had a 1099-C for about $135,000. My husband didn't have any withholding on Social Security. His employer couldn't withhold due to incompetence. I felt utter dread wash over me. Memories of owing the IRS before were constantly on my mind. I called a local CPA. Besides being clueless, he wanted to charge me for every question I had about insolvency. I looked on line and found little hope of the countless stories of permanently disabled people like myself getting their student loans forgiven only to be asked to pay taxes on it as if it were income.
Somewhere, somehow, I find an article by Gary Bode. I bookmarked it for when it's time to do the actual taxes. With his excellent help in how to do all of this out of a virtual office I get my part of the work done. My questions got answered, for free. I give a retainer, do what I said I did and wait. I hear from Gary. I go into shock! How can this be? Not only do I not owe on the 135,000....Gary itemizes and after paying what was almost nothing in taxes we get $950.00 back! No more hubby doing the taxes online! I will use Gary Bode as long as he will agree to work with me!
It was so easy, no worries, but professional and top notch. I know I have thanked you Gary but I am so grateful. Thank you ever so much again!

Carla Bray

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Even though Gary enjoys helping colleagues, we no longer provide free consults to other tax preparers. He's happy to consult on an hourly billing basis if our schedule allows.

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IRS Notice CPA comments on Notice CP 2000

IRS notice CPA Wilmington NC discusses IRS CP 2000

Gary Bode, CPA: IRS Notice CP 2000 isn't always bad news. But if your's is, consider calling for a free phone consult at (910) 399-2705.

Ouch, there’s a letter from the IRS in your mailbox. The IRS computer generates Notice CP 2000, usually years after the tax period they’re concerned about. Most CP 2000s propose you pay more tax, penalties and interest, and conveniently calculate it  for you.  Statistics show about 33% of CP 2000s don’t demand additional tax, but when they do, the average amount is $1,379.00. While CP 2000 may look like a bill, technically it’s asking for clarification of some tax issues on that tax return. It proposes changes to that return based on information they’ve received.

“Despite the non-threatening tone of CP 2000, you must respond in some way. The worst tactic is doing nothing.”
– Gary Bode, IRS Notice CPA

Possible Responses to IRS Notice CP 2000

  • Agree with it. Remember 33% of CP 2000s don’t demand additional tax. Sometimes there’s even a refund due!
  • Pay what they’re asking. For example, maybe you forgot to include a W-2 on the return, they know about it and have kindly re-calculated the amount of tax due.
  • You disagree with the proposed changes. The IRS isn’t always right. While you could call them, a letter clearly stating your objections and corrections, including relevant documentation, works best.
  • Most CP 2000 clients I see need to amend their prior return. For example, the IRS knows about a Form 1099-MISC you received for work as a subcontractor. The IRS demands tax on all of it. But you had legitimate expenses to offset the income. Amending the return is the only way to present these expenses.

Asking for more Time

Generally the IRS grants more time, especially if you ask before the due date listed in the CP 2000. If you engage a CPA, generally that’s the first thing we do. In my experience, the IRS is patient if they know a professional is working the case.

Penalties and Interest

If you amend your return, or prove you owe less tax then the CP2000 demands, the penalties and interest decrease. If there’s IRS Agent involved, they have more leeway with penalty abatement. I think most IRS Notice CPAs routinely ask for penalty abatement, and, I’ve found there is usually a reasonable cause to do so. Interest is tougher. You have to prove the IRS mishandled some part of your tax problem.

Can you handle CP 2000 Yourself?

Probably. I think most CP 2000 notices are cut and dried. Make sure the IRS is correct. Call them if you need help understanding it. Take timely action.

When do you need a CPA for a CP 2000 response?

When you disagree with CP 2000, engaging a CPA is prudent. You have to prove your case to the IRS. Sometimes you have to amend the tax return(s) in question.

State Implications

Remember, if your State has an Income Tax, they’ll eventually follow the IRS action. Better to be proactive with this, in my opinion.

I’m an IRS Notice CPA with a virtual office. While my office is in Wilmington, NC, I can help you no matter where you live (except CA or HI). If you don’t have a local CP 2000 CPA, or like what you read, consider calling (910) 399-2705 for a free phone consult.

 

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