Yes, you can dispute a CP2000 notice. The notice is a proposed adjustment, not a final determination. The IRS is essentially saying the information on your return doesn’t match what third parties reported, and they’re giving you the opportunity to explain or correct the discrepancy before anything becomes official.

The first step is reading the notice carefully to understand what the IRS thinks is wrong. CP2000 notices list specific items where there’s a mismatch. Sometimes the IRS is right. You forgot to report a 1099 from a freelance project or interest from a bank account. Other times the IRS is wrong. The same income got reported twice under different names, you already included it under a different category, or the third party sent incorrect information to the IRS.

You have a limited time to respond. The notice will specify a deadline, usually 30 days from the notice date. Missing this deadline doesn’t mean you automatically owe the proposed amount, but it makes the situation harder to resolve and can trigger additional notices and eventual collection action.

If you agree with the adjustment, sign the response form and send it back. If you disagree, you need to send a written explanation with supporting documentation. This might include corrected 1099s, proof that income was already reported, or records showing why the IRS calculation is wrong. The response needs to be specific and include evidence. A letter saying “I disagree” without documentation won’t get you anywhere.

Partial disputes are common. Maybe the IRS is right about one item but wrong about another. You can agree to part of the adjustment and dispute the rest. Your response should clearly indicate which portions you accept and which you’re challenging.

Business owners often receive CP2000 notices because of how income flows through different entities or because 1099s get issued incorrectly. A contractor who works through multiple LLCs or a Phoenix area business accountant’s client who receives income reported inconsistently faces this more frequently than someone with straightforward W-2 income.

Don’t ignore a CP2000 notice hoping it goes away. The IRS will eventually assess the tax and start collection procedures. Responding properly the first time is much easier than trying to fix it after it becomes a formal liability.

Having someone who understands IRS procedures review the notice before you respond can prevent mistakes that make the situation worse. IRS representation from an Enrolled Agent means someone with the authority to communicate with the IRS on your behalf can handle the entire dispute process if needed. You don’t have to sit on hold or stress about saying the wrong thing in a response letter.