Getting mail from the IRS can be a headache for even the most stalwart of taxpayers. However, a CP2000 notice is a fairly common, auto-generated letter that is typically not too troublesome to resolve. Basically, when the system finds a mismatch between your reported income and the income listed on your tax return, it generates a CP2000 letter to notify you of the discrepancy and provide a proposed solution.

This notice does not mean you are being audited. While one of the most common reasons for an IRS audit is underreporting income, an audit notice is different from a CP2000 notice. For Americans with income under $1 million, the audit rate is less than 1%, so audits don’t happen very often. While it’s a very good idea to enlist the services of a tax lawyer for an audit, you may be able to resolve a CP2000 notice on your own.

Read more

There are different forms of tax abatement that might ease the burden on a taxpayer, but they have one thing in common: the reduction or elimination of taxes. This makes sense because the legal definition of abatement is a reduction, suspension, or cessation of a charge. 

Read more

Most people expect their only interaction with the IRS to be when they file their annual tax return. And when you receive a written notice from them, it usually isn’t good news. This gives the agency a reputation for being punishing and unforgiving. However, the IRS can be more lenient than you think and resolving tax problems doesn’t necessarily have to be a stressful or scary situation.

Read more

Is It Better to File a Chapter 7 or 13 Bankruptcy?

The average person has little to no understanding of bankruptcy, which means there’s a steep learning curve if you need to consider bankruptcy as a solution to your financial situation. 
Read more