An estimated 3 million Americans under report their income.
- Known as the IRS Automated Underreporter Program (CP2000 notice)
- Out of 150 million individual filers, 27 million taxpayers do not report all W-2s/1099s
- Average amount owed : $3,336
If they find that you underreported your income, the IRS begins the collections process. First, they send you a letter to inform you they found a discrepancy and that you may have unpaid taxes. At this point, you can either dispute the discrepancy or make arrangements to pay the amount due.
“I did not report all of my W-2s/1099s”