Royce Allen CPA

06/06/2026

06/04/2026

09/06/2025

06/12/2023

What To Do if You Receive an IRS CP2000 Notice

An IRS CP2000 notice is mailed to a taxpayer when income reported from third-party sources such as an employer, bank, or mortgage company does not match the income reported on the tax return.

It is not a tax bill or a formal audit notification; it merely informs you about the information the IRS has received and how it affects your tax. It is, however, important to pay attention to what your CP2000 notice states because interest accrues on your unpaid balance until you pay it in full.

If you receive a CP2000 notice in the mail, complete the response form. If your notice doesn't have a response form, then follow the notice instructions. Generally, you must respond within 30 days of the date printed on the notice. However, you may request additional time to respond, and if you cannot pay the full amount that you owe, you can set up a payment plan with the IRS.

If the information on the CP2000 notice is not correct, then check the notice response form for instructions on what to do next. You also may want to contact whoever reported the information and ask them to correct it.

If the information is wrong because someone else is using your name and Social Security number, contact the IRS and let them know. You can also use the link on the IRS Identity theft information web page to learn more about what you can do.
If you do not respond, the IRS will send another notice. If the IRS does not accept the information provided, it will send IRS Notice CP3219A, Statutory Notice of Deficiency, which includes information about how to challenge the decision in the U.S. Tax Court.

Do I Need To Amend My Return?
If the information displayed in the CP2000 notice is correct, you don't need to amend your return unless you have additional income, credits, or expenses to report. If you agree with the IRS notice, follow the instructions to sign the response page and return it to the IRS in the envelope provided.

If you have additional income, credits, or expenses to report, complete and submit a Form 1040-X, Amended U.S. Individual Income Tax Return. If you need assistance with this, please call the office.

How To Avoid Receiving an IRS CP2000 Notice
You can reduce the likelihood of receive this notice by following these best practices:

Keep accurate and detailed records.
Wait until you receive all your Form W-2s, 1098s, 1099s, etc., before filing your tax return.
Check the W-2s, 1098s, 1099s, etc., you receive from your employer, mortgage company, bank, or other sources of income to ensure they are correct.
Report all your income on your tax return, including that from a second job or fees derived from the sharing economy (e.g., renting a spare room out on Airbnb).
Follow the instructions for reporting income, expenses, and deductions.
File an amended tax return for any information you receive after you've filed your return.

Use a professional tax preparer who will help you avoid mistakes.
If you have questions about IRS notices, help is just a phone call away.

02/08/2023

Health Savings Accounts: The Ultimate Retirement Account
Looking to save for retirement?

The first account you should open, and fund is not an IRA (regular or Roth) or 401(k).

If you qualify, your first retirement account should be a Health Savings Account (HSA). Don’t let the name fool you.

The HSA may be the ultimate retirement account.

Not looking to save for retirement? You should still open an HSA,
Health Savings Accounts: The Ultimate Retirement Account

Looking to save for retirement? The first account you should open and fund is not an IRA (regular or Roth) or 401(k).

If you qualify, your first retirement account should be a Health Savings Account (HSA). Don’t let the name fool you. The HSA may be the ultimate retirement account.

Not looking to save for retirement? You should still open an HSA.

Call for an appointment to discuss the advantages of an HSA!
405-843-3978

10/11/2022

1. At what age should I draw my benefit?

No one can give you a “one-answer fits all” response. There are three factors involved in this answer: genetics, personal health and financial need. Keep in mind that the Social Security Administration (SSA) tells us the average life expectancy for a male is roughly 84 years, and for a female 87 years in determining your answer, and then look at the age your parents (of your s*x) died as a first measurement point. Then look to your own health because SSA tells us to knock ten years off of that life expectancy if you are diabetic, obese, smoke or have kidney disease. Finally, look at your financial need-do you really need the money or do you just want the money-there are severe, permanent penalties for drawing early, and substantial benefits for delaying. As a general rule I suggest delaying until age 70.

2. What are the age rules for drawing? (* means early draw penalty applies)

If drawing on your own benefit:

If disabled at any age
If not disabled, at age 62*
As late as age 70
If drawing on a spouse (they must be drawing for you to draw on their benefit):

As early as your own age 62*, if your spouse is drawing their own benefit
As late as your own full retirement age, if your spouse is drawing their own benefit, note that delaying drawing a spousal benefit beyond your own full retirement age does not get you a dime more at age 70 versus age 67. We usually recommend spousal benefits be drawn when you reach your own full retirement age, which for most Americans is now age 67.
If drawing as a widow or widower on your deceased spouse
Age 50 if you are disabled (deceased spouse must have been at least 62)
Age 60* if you are not disabled (deceased spouse must have been at least 62)
Full retirement age (usually 67 now). There is no reason to wait beyond this age-a widow/widower benefit does not increase beyond your own full retirement age.
If drawing as an ex-spouse (Your ex must be at least age 62 and you must have been married at least ten years)
As early as your own age 62*, if your ex-spouse is at least 62
As late as your own full retirement age, if your ex-spouse is at least 62 note that delaying drawing an ex-spousal benefit beyond your own full retirement age does not get you a dime more at age 70 versus age 67. We usually recommend ex-spousal benefits be drawn when you reach your own full retirement age, which for most Americans is now age 67.

3. How many years of working is my benefit based upon?

Your benefit is based on the average of your highest 35 years of earnings.
4. Can I increase my benefit with a couple of big years earnings?

Not significantly. Because your benefit is based on an average, and because any one year cannot be credited for more than the maximum wage limit for that year, one or two years of big earnings will have a negligible effect on your benefit because of the averaging. We generally say that you need at least 10-15 years of big earnings to have a significant effect on your benefit.
5. What is my full retirement age?

Your benefit is calculated on your full retirement age.

6. What are the penalties and rewards for signing up early (before full retirement age) or after my full retirement age?

7. What kind of benefits does a child qualify for?

Normally a child qualifies for a benefit of 50% of a living parent’s benefit, or 75% of a deceased parent’s benefit. Here is a summary table:

8. What is the most common mistake made when drawing Social Security before full retirement age?

A combination of failing to recognize that you (and your spouse) cannot get Medicare before age 65 and the fact that the early signup penalty is the “forever” penalty that affects you and anyone drawing on your account for the rest of everyone’s life.
9. Is there an “ideal” amount of earnings to pay in if I am self employed to maximize my benefit in return for the tax I pay in?

There are things called “bend points” on which your social security is based. The ideal best “bang for your buck” of earnings vs. benefits is the top of the second bend point, which is about $72,000 for 2022.
10. Can I work while drawing?

Yes, but earnings are limited in the years before you reach your full retirement age if you sign up early. Once you hit your FRA, there are no limits on earnings.