The Internal Revenue Service (IRS) submits federal tax information to the North Carolina Department of Revenue (NCDOR). The NCDOR utilizes federal tax information in many tax compliance initiatives.
The IRS matches individual income tax return information with information returns submitted by banks, employers, and other payers. The IRS issues a CP2000 notice to taxpayers that fail to report specific income items on the federal individual income tax return. The CP2000 notice generally increases federal taxable income. The North Carolina individual income tax return starting point is federal taxable income. A taxpayer who receives a CP2000 notice must file an amended State return reflecting the adjustments on the CP2000 notice within six months of receiving the CP2000 notice. Failure to file an amended North Carolina individual income tax return reflecting the adjustments indicated on the CP2000 notice will result in a Notice of Individual Income Tax Assessment from the North Carolina Department of Revenue.
Taxpayers with questions related to this notice, should call the Notice Inquiry Line, 1(877) 252-3252. Please have a copy of the notice, your Federal and State returns, and all information returns such as W-2 or 1099 forms available if you call.
The explanation printed on the Notice of Individual Income Tax Assessment for this initiative states:
We have adjusted your State return based on information obtained from the Internal Revenue Service’s CP2000 document matching program under Section 6103(d) of the Internal Revenue Code. If you agree with this adjustment, please send us your payment for the BALANCE DUE.
If you have already filed an amended State return reporting this adjustment, check here ( ) and RETURN THIS ENTIRE NOTICE WITHOUT PAYMENT within 45 days of the date of this notice.
If you have information to show that the Internal Revenue Service amended their adjustment or if our adjustment is in error, please send us the information within 45 days of the date of this notice.
Important telephone number regarding the CP2000 Initiative:
|Notice of Individual Income Tax Assessment||
1 (877) 252-3252