United StatesServices Tax filingsIRS notice response support

Tax filings

IRS notice response support for US businesses

The CP2000 or letter answered with a reconciliation and evidence — representation itself is licensed work, and we build the file behind it.

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What is irs notice response support?

The CP2000 or letter answered with a reconciliation and evidence — representation itself is licensed work, and we build the file behind it.

An IRS notice arrives with a deadline already running, and the letter itself rarely explains what happened in language a business owner can act on. The most common one is a CP2000 — the underreporter notice the IRS's Automated Underreporter program generates when a W-2, 1099 or other third-party information return doesn't match what the taxpayer reported on their 1040. It isn't an audit and it isn't a bill; it's a proposed change, and the taxpayer has 30 days from the date on the notice — 60 if they live outside the United States — to agree, partially agree, or dispute it with documentation, per IRS Tax Topic 652. Miss that window and the IRS moves to a statutory notice of deficiency, which starts a harder, more formal process to unwind.

Representing a taxpayer before the IRS on that notice — signing Form 2848 (Power of Attorney), corresponding with the IRS on the client's behalf, appearing in an interview if it gets that far — is restricted by Circular 230 to attorneys, CPAs and Enrolled Agents. A PTIN alone, the credential that lets someone prepare a return for a fee, carries no representation rights at all. That line sits above CapEasy's own PTIN-based prep work and above what this leaf can do directly: an EA, CPA or attorney partner signs the 2848 and files the actual response.

Who does what

Representation before the IRS belongs to an EA, CPA or attorney under Circular 230; CapEasy prepares the reconciliation and evidence pack they respond from.

Who does what

Your CapEasy teamIRS notice response support, the reconciliations and reporting behind it, and the questions list that keeps it honest.
Your CPA or enrolled agentEverything that carries a licence in United States — rendered exactly as written: issue compilation, review or audit reports — those are restricted to licensed cpa firms.
YouOne conversation with one named person, and the decisions that are genuinely yours.

IRS notice response support in United States

Circular 230 draws the representation line, not a PTIN

A PTIN lets someone prepare and even e-file a federal return for a fee — no CPA, EA or attorney credential required. It confers zero representation rights before the IRS. Signing Form 2848, speaking to the IRS as the taxpayer's agent, or appearing at an interview is restricted to attorneys, CPAs and Enrolled Agents under Circular 230; a PTIN-only preparer has, per the IRS's own guidance, no authority to represent a client at all. CapEasy prepares the reconciliation and the draft response; the EA, CPA or attorney partner signs the 2848 and represents the client.

Tax Topic 652 sets the clock: 30 days, 60 if the taxpayer is abroad

IRS Tax Topic 652 states the CP2000 response window directly: 30 days from the date on the notice, or 60 days if the taxpayer lives outside the United States. The general CP2000 explainer page only says 'reply by the date listed,' so Topic 652 is the source that gives the actual number — and the date that matters is the one printed on the specific notice in hand, not a generic 30-day assumption, since a notice can arrive weeks after its own issue date.

A CP2000 is a proposed change, not an assessment — silence is what turns it into one

The IRS's Automated Underreporter program flags a mismatch and proposes an adjustment; it does not assess additional tax on its own. If the taxpayer doesn't respond within the window, the IRS issues a statutory notice of deficiency and can move to assess the proposed amount by default. A CP2000 that's actually wrong — a duplicate or corrected 1099, income already reported on a different line — only stays wrong on paper if nobody replies with the documentation that shows it.

A state notice can follow a federal one on its own separate clock

Most states share data with the IRS or trigger their own underreporter checks once a federal adjustment posts, and the state notice that follows runs on the state Department of Revenue's own deadline, not the federal one. Resolving the CP2000 doesn't automatically close the matching state exposure — that follow-on notice, if it arrives, needs its own response inside its own window.

What your CPA or enrolled agent receives from us

  • A line-by-line reconciliation of the notice against the filed 1040 and every W-2, 1099 and K-1 referenced, showing exactly where the IRS's figure and the return's figure diverge and by how much.
  • The documentary evidence behind each contested line — a corrected or duplicate 1099, a transaction record, a prior-year comparison — organized in the order the notice raises the issues.
  • A draft written response addressing each proposed change as agree, partially agree, or dispute, with the reasoning and supporting document referenced for each position.
  • A summary of the response deadline as printed on the specific notice (30 days, or 60 if the taxpayer is abroad, per Tax Topic 652), flagged early enough for Form 2848 to be signed and the response mailed inside the window.
  • A completed draft Form 2848 (Power of Attorney) ready for the EA, CPA or attorney partner's signature — CapEasy prepares the form; only the partner signs it.
  • A note on any related state Department of Revenue exposure the same underlying adjustment is likely to trigger, so that notice doesn't arrive as a surprise on its own clock.

Questions worth asking before you start

Who actually does the work — a person or an AI tool?

A named person on our team owns your file and reviews everything that leaves it. Software does a real share of the grinding underneath it — coding, matching, flagging the obvious gaps — but nothing regulated happens without a person’s judgement, and nothing here is signed or filed by an algorithm.

Who can legally file this?

Representation before the IRS belongs to an EA, CPA or attorney under Circular 230; CapEasy prepares the reconciliation and evidence pack they respond from.

Which software do you work in?

Whatever you already run. Most commonly QuickBooks, Xero, NetSuite, Sage, Zoho Books and a handful of others — we work inside your system rather than moving you onto one of our own.

How does this actually start?

A short, free read-only look at what you already have, and a written note on what we found. A scoping call decides the size of the engagement — nothing here commits you to anything.

What does it cost?

There is no published price for irs notice response support — it depends on volume, how many entities are involved, and how far behind the books are. We quote after the read-only review, which is free.

How does this fit with the rest of tax filings?

IRS notice response support sits inside tax filings, alongside Form 1040 preparation, Schedule C & self-employment taxes, Form 1065 & K-1 preparation. Most clients end up buying the category as a whole rather than one leaf at a time, but starting narrow is fine.

Can CapEasy respond to my CP2000 directly?

CapEasy builds the reconciliation, gathers the evidence and drafts the response. Signing Form 2848 and corresponding with or representing you before the IRS is restricted under Circular 230 to an attorney, CPA or Enrolled Agent — our partner does that part, working from the packet we build.

How long do I actually have to respond to a CP2000?

IRS Tax Topic 652 states 30 days from the date printed on the notice, or 60 days if you live outside the United States. Use the date on your specific notice, not a general assumption — notices sometimes arrive well after their issue date, which eats into the window before anyone starts working it.

What happens if I don't respond in time?

The CP2000 isn't a bill — it's a proposed change. If it goes unanswered, the IRS can issue a statutory notice of deficiency and move toward assessing the proposed amount by default, which is a harder position to unwind than answering inside the original window.

What's the difference between a CP2000 and an audit?

A CP2000 comes from the IRS's automated matching program comparing your return against third-party information returns (W-2s, 1099s, K-1s) — it's a computer-generated mismatch flag, not a human-initiated audit. It can escalate into a formal examination if the response doesn't resolve it, but it starts as a proposed adjustment, not an audit notice.

What is Form 2848 and why does it matter?

Form 2848 is the Power of Attorney that authorizes an attorney, CPA or Enrolled Agent to represent you before the IRS — sign for you, correspond on your behalf, appear at an interview. It's free to file. We prepare the form; only the EA, CPA or attorney partner named on it signs it, because that's what makes them your legal representative on the matter, not us.

What if the notice is just wrong — the income really was reported?

That happens more often than people expect: income reported on a different schedule than the one the matching program checked, a duplicate 1099, or a 1099 the payer later corrected. We reconcile the full return against the notice, not just the flagged line, and the documentation for a genuinely wrong notice goes into the same response packet as a dispute, not an agreement.

Does resolving my federal CP2000 also resolve any state notice?

No — a state Department of Revenue notice on the same underlying adjustment runs on its own deadline and needs its own response. We flag that likely follow-on when we build the federal response so it isn't a surprise later.

Do I need a lawyer for a CP2000, or is a CPA/EA enough?

For most CP2000s, a CPA or Enrolled Agent handles the representation — both hold full Circular 230 representation rights. An attorney typically gets involved when the matter escalates toward litigation or when legal privilege matters for a specific reason. Our partner network covers CPA and EA representation for the notice-response tier.

Can CapEasy help even though it has no US-licensed staff?

Yes, on the preparation side. Preparing the underlying reconciliation and drafting the response doesn't require a CPA/EA/attorney credential — only signing Form 2848 and representing you before the IRS does. We do the reconciliation and drafting; the licensed partner does the representation.

What if my notice is about something other than income — like a balance-due notice (CP14) instead of CP2000?

The representation rule is the same regardless of notice type — CapEasy prepares the documentation and reconciliation, and the CPA/EA/attorney partner handles any correspondence or representation with the IRS. The specific response depends on what the notice is proposing, which we review before drafting anything.

How fast can this actually move once I send you the notice?

We start the reconciliation the day the notice is forwarded and route Form 2848 to the partner for signature in parallel rather than waiting for the full evidence packet to be finished first, so the 30-day (or 60-day) window isn't spent on internal handoff sequencing.

Your CapEasy experts

Connect with us

Talk to the people who handle this work every day — no call centre, no hand-offs.

Ayush Joshi

Ayush Joshi

Co-Founder

Ex-OYO and Tenaciousfly. 7+ years in business development, strategic acquisitions, financing and debt syndication.

Aditya Jain

Aditya Jain

Co-Founder

Ex-Bank of America. 4+ years in investment banking, EU & Indian compliances, ESG compliances, and project management.

Manav Raval

Virtual CFO & Tax Specialist

Section 80-IAC, tax planning and startup compliance. Previously at Toyota Motor Corporation and Jaguar Land Rover.

Ayush Faldu

Virtual CFO & Tax Specialist

Financial strategy, budgeting and cash flow — a CFO’s judgement, monthly.

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