The letter is dated March 12, 2021, but it is a record of your SECOND stimulus payment, not the third. It gives you the amount and how the EIP2 payment was issued. No matter why you’ll need to keep this for your taxes next year and you should expect a letter similar to this to follow up your third stimulus payment.

Why does my stimulus letter say $1200?

This error stems from the IRS’s implementation of two sets of stimulus payments. The Coronavirus Aid, Relief and Economic Security Act, or Cares Act, which passed in the spring, authorized payments of up to $1,200 for individuals and $2,400 for couples filing jointly, based on 2018 or 2019 federal returns.

What does it mean when you get a CP2000 letter from the IRS?

If you receive a CP2000 letter from the IRS, it means your tax return did not match the information reported to the IRS by third parties. The most common situation is that you either forgot a W-2 or 1099 or did not enter the same amount as shown on the form. The IRS is not asking you to amend your return. It has already made changes.

Is the CP2000 a declaration of an audit?

It is simply a document the IRS sends proposing that you revisit your claimed income, payments, credits, or deductions. These changes will either result in more taxes owed or a larger credit. By no means is the CP200 a bill, nor is it a declaration of an audit.

What to do if you get a CP2000 inquiry?

Gather all the information statements under your Social Security Number. These are the forms you get at tax time reporting your income for the year (like W-2s and 1099s). Compare those statements with your tax return to see whether you left any income off your return. If so, you’ll need to properly calculate any additional tax that you may owe.

How long do you have to respond to a CP2000 notice?

You will usually have 30 days to respond to a CP2000 notice. If you need more time to find the documents you need, you can call the IRS to ask for more time. They will usually grant one 30-day extension if your original deadline hasn’t passed. An extension does not pause interest and penalties.