TAP C03-020

CP-2000 Recommendations

Statement of Issue:

The IRS CP-2000 notice informs taxpayers of IRS's proposed changes to the taxpayer's tax return. The original version of the Notice is difficult for the average taxpayer to comprehend or navigate through the process. Further, CP-2000 notice delivered minimal, and, in some cases, confusing information to the taxpayer. The IRS incorporated many of the TAP - Notice Committee's recommendations and incorporated them into the revised CP-2000 notice, dated July 23, 2003 and asked the committee to submit any further recommendations and/or changes.

The TAP - Notice Committee members were then given copies of the revised CP-2000 notice (dated July 23, 2003 ) and asked to submit any further recommendations and/or changes.

Proposal:

Highlights of the changes are as follows:

1. The "Summary of Proposed Changes" section is now preceded by: "Why You Are Getting This Notice," instead of: "How Does This Effect You?" The section also includes penalty and interest expiration dates, as recommended.

2. In the "What You Should Do" section, an installment agreement request was added, and a recommendation for the taxpayer to review his/her rights in The Examination Process Booklet was now included.

3. The "Frequently Asked Questions" section now includes an explanation of why the taxpayer needs to pay interest and penalties, as required by law.

4. Wording in the revised CP-2000 notice "Response Form " section has been added which directs the taxpayer to review the Explanation Section and decide whether (s)he agrees or disagrees with IRS proposed changes.

5. The "Before Mailing" Section in the July CP-2000 now advises the taxpayer to make copies of his/her Response Form, as well as The Installment Agreement Request, if utilized. This was not in the June CP-2000 notice.

6. Finally, the July CP-2000 "Explanation Section" has been expanded to include explanation codes and addresses of the financial institutions that issued taxable interest and/or dividends.

Response Notes:

Response from Program Owners, James Cesarno and Ann Gelineau stated input from the Notices Committee was considered. A revised Notice CP 2000 was issued in late 2004 which reflected recommendations made by the Notice Committee members. At the 2004 Annual TAP Conference a copy of the old notice and new notice was circulated.

This "issue" is complete. The Notice committee thanks the IRS for requesting pre-decisional input.