What Does the Ohio Individual Income Tax CP2000 Unreported Income Notice Mean For You?

Updated January 2022: This particular CP2000 Notice is specific to tax years 2015 thru 2019 and focuses on taxpayers who have understated their income on their state tax return, which includes failing to report income in some cases altogether. The state of Ohio gets this information from the IRS so that the State can pinpoint which taxpayers to contact. If you’ve gotten a CP2000 Notice, we’re ready to guide you through your options.

An Ohio Income Tax CP2000 Unreported Income Notice is no laughing matter. While not a formal audit, which would lead to a full IRS tax examination, a CP2000 notice is a letter stating that the income or payment that the IRS has on file does not match the information you submitted on your tax return. This inconsistency may result in more or fewer taxes owed or even an audit. If you’ve received an Ohio CP2000 notice and are unsure of the next steps, the tax professionals at Sheppard Law Offices can help. We have helped countless Ohio residents with their tax problems and can make sure you understand what to expect after receiving a CP2000 letter. Learn more about what an Ohio CP2000 letter means below.

Why did I receive a CP2000 notice?

While a CP2000 notice is something to pay attention to, receiving one is a fairly common occurrence. It is a computer-generated notice, so one is sent out any time there is a disparity between your tax return and the reports filed by third parties. This discrepancy can be due to a simple filing or input error and is easily rectifiable by submitting the proper information. However, it can quickly turn into a serious matter involving penalties and fines if ignored. A CP2000 notice is just a warning, it is not a bill.

What happens next?

The first step is to carefully read your CP2000 notice in full. This will detail exactly why you have been issued the letter and will provide you with instructions on how to proceed. In some instances, a CP2000 Response Form will accompany your initial CP2000 notice. You will have to complete the following steps in a timely manner.

If you have received the CP2000 Response Form, you must complete it and return it, regardless of if you believe it is correct or not.
If the information provided on the CP2000 notice is correct, follow the included instructions and return your signed form in the enclosed envelope.
If you do not believe the information on the CP2000 is accurate, follow the instructions detailing such.
If you find that the information is incorrect due to an error by a third-party (such as Turbo-Tax) contact said party and request that they submit a revision and an explanation.
If you were the one who initially reported the error, you can reach out to the IRS by phone to issue a correction.

How can I avoid a CP2000 in the future?

While no one wants tax problems, they are extremely common. Fortunately, there are several ways to avoid them for the future.

Keep complete and accurate records
Do not file until you have received all of your income statements
Double-check your records and documents from employers, banks, and all other sources of income
Include all income earned on your return
File an amended tax return if you receive any important information after you’ve filed your return

If you’re having difficulties with the IRS or your taxes, the professional tax attorneys at Sheppard Law Offices can help. Our experienced tax professionals are dedicated, highly skilled, and capable of solving even the most challenging IRS problems. We work with you to find the best solution to your tax problems and to resolve your issues completely. Contact us today to learn more.