If you received an IRS CP2000, CP2501 or 3219A letter, it means that you didn't report all of your income on your 1040 form to the IRS and their computers caught it.
- Sold your home and didn't report it? They caught the transaction with the form 1099-S
- You sold goods on Ebay or Etsy and didn't report the income on the 1099-K?
- You cashed out your 401k and didn't report the 1099R?
- You sold stocks or exercised stock options but didn't report them correctly?
- You didn't report your Bitcoin sales.
- You did contract work but didn't report your income and deductions from 1099-MISC.
Whatever triggered your IRS CP2000 letter, you or your tax professional will need to address it to avoid taxes and penalties.