IRS Errs on Interest Calculations

If you received one of those annoying “CP2000” letters from IRS recently, be on notice that the interest they may have charged you on that notice was incorrectly calculated – the amount was too low!

A CP2000 is a standard form letter on which IRS asserts difference(s) between amounts reported by a taxpayer on his return, and amount reported by banks, employers and other payors.  If IRS thinks you owe, they simultaneously bill you for the related interest.  But on notices sent during the last two weeks, IRS’ interest calculations were wrong – and be assured, you will receive another notice with the correct interest amount, says IRS.