Response Desk/CP2030

IRS Notice CP2030 · Business Underreporter Notice

Your business received a CP2030 — the entity version of a CP2000.

The IRS believes income reported to your corporation or partnership doesn't match the return. The mechanics mirror a CP2000, but the stakes scale with the entity.

30 days

Typical deadline

Tier 2

$595

15 min

Free triage call

Book a triage call All notice types

What it is

What a CP2030 actually means

A CP2030 is sent to businesses (corporations, partnerships, certain trusts) when third-party income reports don't reconcile with the filed entity return. Like a CP2000, it proposes additional tax rather than billing it.

Business notices often stem from 1099-K marketplace reporting, merchant-processor figures, or interest and dividend income posted to the entity. Reconciling gross settlement amounts against booked revenue is usually where the discrepancy resolves.

Why you might have received one

1099-K marketplace gross exceeds booked revenue (refunds, fees not netted)
Merchant-processor totals reported on a gross basis
Income posted to the entity that belongs on an owner's return
A late-arriving 1099 not reflected at filing

What's at stake

An unresolved CP2030 escalates the same way a CP2000 does, and the proposed assessment can affect estimated payments, owner K-1s, and downstream personal returns. A clean reconciliation protects the whole chain.

Common mistakes we see

Treating 1099-K gross as taxable revenue without netting fees and refunds
Failing to tie marketplace settlement reports to the books
Ignoring the flow-through impact on owners' returns
Letting the 30-day window lapse into a deficiency notice

Transparent, flat-fee pricing

You'll know the cost before we start

No hourly surprises on routine notices. We confirm the tier on your free triage call and put the fee in writing.

Tier 1

$295 flat fee

Simple notices

CP501, CP14, balance-due reminders
Notice review & deadline confirmation
One drafted response letter
Filed on your behalf

Tier 2

$595 flat fee

Underreporter & matching

CP2000, CP2030, AUR notices
Line-by-line reconciliation
Substantiation package assembled
One free follow-up within 90 days

Tier 3

from $1,495 scoped quote

Urgent & high-stakes

CP3219A, CP504, Letter 226-J
Tax Court petition support
Penalty abatement requests
Direct IRS / DOR representation

Tier 4

$350 per hour

Examination & appeals

Full audit representation
Appeals conferences
Complex multi-year matters
Quoted in writing before work begins

Common questions

Before you call us back, read this

We're a marketplace seller — why is the IRS's number so high?

1099-K reports gross settlement, including amounts later refunded and processor fees. Once those are netted against your books, the figure usually reconciles.

Does this affect our owners' personal returns?

It can. A change at the entity level can flow through to K-1s and individual returns, which is why we map the full impact before responding.

Is the response process the same as a CP2000?

The mechanics are very similar — reconcile, substantiate, respond inside 30 days. The difference is the entity-level documentation and flow-through analysis.

What does the $595 fee cover?

Reconciliation of the entity's reported income, the substantiation package, the drafted response, and one free follow-up within 90 days.