Service:
IRS Resolution
Client:
Individual
Duration:
5 months
Date:
Jan 29, 2024
A CP2000 That Wouldn’t Wait
The client received a CP2000 proposing more tax based on income the IRS believed was missing—multiple 1099s from a broker and a contractor platform didn’t match the filed return. Interest and penalties were already accruing, the reply window was short, and some statements were incomplete. The worry: paying more than necessary, triggering an audit, or missing the deadline altogether.
Right Reply, Right Away
Notice Review & Timeline
Read the CP2000 line by line; mapped due dates and required forms.
Compared IRS data to the filed return and prior-year carryforwards.
Evidence & Reconciliation
Collected all 1099s/W-2s and full brokerage activity through SmartVault.
Tied out basis and sales lots; recalculated income and adjustments precisely.
Determined whether a simple response or an amended return was warranted.
Formal Response & Relief
Drafted a clear letter with an exhibits index; corrected the numbers the IRS had.
Requested penalty abatement for reasonable cause; calculated accurate tax due if any.
Arranged an installment agreement when helpful to cash flow.
Closure & Prevention
Secured written resolution and saved confirmations in a tidy archive.
Updated withholdings/estimates to safe-harbor levels; added a next-year checklist.
Set optional quarterly check-ins so a notice like this doesn’t return.
See De Sensi & Associates - SmartVault:
What We Resolved Together
Lowered the proposed balance after reconciling 1099s and correcting the IRS figures.
Penalties set aside with a clear reasonable-cause explanation and tidy documentation.
Payment terms arranged so cash flow stayed intact while the case wrapped up.
Case closed fast with written confirmation and a checklist to prevent repeats.
“Getting a CP2000 felt like a punch to the gut. De Sensi & Associates walked me through what it meant, pulled every statement together, and showed exactly where the IRS numbers were off. They wrote the response, requested relief for penalties, and set up manageable terms. I never sat on hold once. The notice is behind me, and I’ve got a simple way to keep it from happening again.”
Marlo Fentris
Car Salesman
