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The IRS compared your return against a 1099-B from Robinhood and believes $12,400 of investment incomewasn't reported. It's proposing additional tax, a 20% accuracy penalty, and interest.
After the deadline, the IRS issues a 90-day Statutory Notice of Deficiency (CP3219A). The amount then becomes a real, collectible debt, with penalties locked in.
The computer assumed a cost basis of zero on your trades. With your brokerage statement, this proposal can very likely be reduced dramatically, this is the most commonly corrected CP2000 error.
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Answer a few guided questions, and receive everything needed to contest the cost basis and respond before Aug 12.
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- Checklist of documents to attach, matched to your items
- Exact destination: mailing address, fax, or IRS upload portal
- Email reminders before your Aug 12 deadline
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