1. What Does Your IRS Notice Require?
Check the notice number, taxpayer name, tax year, and response deadline. These details distinguish an information request from a proposed adjustment or a notice carrying court filing rights.
Identify the Disputed Items
A CP2000 proposes changes based on differences between your return and third-party reports. It is not a bill or a formal audit notice, so compare the listed income and payments before agreeing.
An examination letter requests records for specified return items. For tax audits and adjustments, confirm the entity and period under review rather than assuming the inquiry covers related businesses or owners.
Use the Correct Submission Channel
Follow the notice’s mailing, fax, or authorized upload instructions. Keep copies and submission confirmations so you can establish what you sent and when.
A Los Angeles Taxpayer Assistance Center can provide in-person assistance; check appointment requirements and bring identification and relevant records. Visiting the center does not itself submit an audit response, appeal, or court petition.
2. Which Records Support Your Response?
Each disputed figure should connect to an identifiable transaction or payment. Arrange documents by adjustment and explain what they establish.
Reconcile Income and Payments
Compare W-2s, 1099s, account transcripts, and payment confirmations with the return. Check for incorrect payer reports, duplicated income, or payments credited to another period.
Explain bank deposits where necessary. Transfers, loan proceeds, and customer receipts may appear together but have different tax consequences.
Document Business Expenses
Provide receipts, invoices, payment records, and evidence of business purpose. Proof of payment alone may not establish deductibility, and certain expenses require specific substantiation.
Preserve originals and submit copies unless instructed otherwise. Identify missing records honestly rather than supplying unsupported estimates.
3. How Do You Challenge an Adjustment?
Administrative review and court proceedings have separate requirements. The notice and procedural stage determine which route is available for your tax dispute.
Request IRS Appeals Review
For qualifying matters, follow the letter’s instructions to request review by the IRS Independent Office of Appeals. Explain the disputed adjustments, supporting facts, and legal reasons for disagreement.
Send the request through the designated office by the applicable deadline. Do not assume an informal telephone conversation constitutes a completed appeal.
File a Tax Court Petition Separately
Under IRC §6213(a), a deficiency petition generally must follow within 90 days after notice mailing, with 150 days available in qualifying circumstances involving a person outside the United States. Continued IRS discussions do not extend that period.
Los Angeles is a Tax Court trial location, but petitions go through DAWSON or the court’s designated mailing address. Electronic filing closes at 11:59 p.m. Eastern time; delivery to a local IRS office does not file your petition.
4. What Changes after a Federal Adjustment?
The IRS administers federal taxes, while California and city authorities administer separate obligations. A federal resolution does not automatically settle those accounts.
Check California Reporting Duties
When federal changes result in additional California tax, FTB guidance generally requires reporting within six months of the final federal determination. Review the adjustment documents and state instructions rather than relying on IRS information sharing.
California does not adopt every federal tax rule. Review the adjustment’s actual effect on your state return before calculating additional liability.
Keep City Business Taxes Separate
The Los Angeles Office of Finance administers city business tax and registration requirements. These state and local tax obligations require separate analysis from an IRS notice.
Confirm whether the business operates within city boundaries and which activities fall under city rules. A county address alone does not establish city business tax liability.
5. Frequently Asked Questions
Representation and unavailable documents can affect response preparation. Neither issue should leave the applicable deadline unaddressed.
An eligible representative may act under Form 2848 for specified matters and tax periods. Authorization merely to receive tax information does not provide equivalent representation authority.
Contact the responsible office before the deadline and ask whether an extension is available. Explain what remains missing, and do not assume your request changes the deadline; Tax Court petition periods require separate attention.
6. Before You Submit or Sign
Review the taxpayer, period, disputed amounts, supporting records, and destination before sending your response or signing an agreement. If a court deadline is near or federal and state obligations overlap, an attorney can assess the procedure and legal basis for your position.
20 Oct, 2026
