Tax Notice Decoder and Response Plan
Turns the text or key details of an IRS or state tax notice into a plain English summary, a list of what the notice says is wrong, a suggested response plan, and a deadline worked out from the dates on the notice.
Before and after
Notice summary
- Agency: IRS
- Notice: CP2000
- Notice date: March 3
- Tax year: 2022
- Response due date: April 2
- Client: Jolene Leach
What the agency says
- They say $4,200 of 1099-NEC income from Grovemont Landscaping was not on the return.
- They propose added tax of $1,008.
- Please confirm the notice type and the options it lists against the notice itself and the IRS.
Record check
- Grovemont 1099-NEC income: does not match our records. We reported $3,100. The notice shows $4,200, a difference of $1,100.
- 1099-NEC received by the client: matches our records for $3,100 only.
- Extra December jobs: we need to check. Jolene says she did them, but we have no form or invoice for them yet.
- Balance paid when the return was filed: matches our records.
Response plan
- Joan Ingram pulls the 2022 file and the Grovemont 1099-NEC. Target: to be set by the office (see Questions for the owner).
- Jolene Leach sends invoices, payment records, and bank deposits from Grovemont Landscaping for 2022, including the December jobs. Target: March 14.
- Joel Kane compares the records to the $4,200 and the $3,100 and decides what the response should say. Target: to be set by the office (see Questions for the owner).
- Joel Kane prepares the response and calls the client to review it. Target: March 24.
- Joel Kane files the response with the IRS. Target: to be set by the office (see Questions for the owner).
- The office contacts the IRS at the number on the notice if the records cannot be matched. We recommend this before the due date.
- Any question about penalties, interest, appeal rights, or representation goes to Joel Kane or a licensed tax professional.
Deadline table
- IRS response due date: April 2
- Client documents due to us: March 14 (19 days before the due date)
- Response ready at our office: March 24 (9 days before the due date)
Please confirm the due date and any extension or appeal rights with the notice and the IRS.
Client message
Hi Jolene, this is Goldmont Tax Services. You received a CP2000 notice from the IRS dated March 3 for tax year 2022. It says $4,200 of income from Grovemont Landscaping was not on your return, and it proposes added tax of $1,008. Our records show we reported $3,100 from Grovemont. We recommend we look into the difference of $1,100 right away. Please send us by March 14 any invoices, payment records, and bank deposits from Grovemont for 2022, including the December jobs. Please do not email your full Social Security number. If you have questions, call us at 319-555-0106. The IRS response is due April 2. Joel Kane
Questions for the owner
- What target dates should the office set for Joan Ingram to pull the file, for Joel Kane to compare the records, and for filing the response with the IRS?
- Did the IRS notice list any response options, or a phone number, that should be added to the plan?
- Does the office want to add a plan step for whether Jolene has other 2022 income forms not yet reviewed?
What it does
Turns the text or key details of an IRS or state tax notice into a plain English summary, a list of what the notice says is wrong, a suggested response plan, and a deadline worked out from the dates on the notice. It is a working draft for the preparer to review, not tax or legal advice.
Use it when: Use when a tax prep or bookkeeping office receives an IRS or state tax notice from a client and needs to decode it, such as: "what does this notice mean," "decode this IRS letter," "client got a state tax notice," or "build a response plan and deadline for this notice."