IRS CP2057
Income on Your Return Doesn't Match What Was Reported to Us
Third-party income reports don't match your return — the IRS wants an explanation.
Deadline
60 days to respond
CP2057 is a notice — not yet an assessment. Respond within 60 days. Ignoring it leads to CP2000 (proposed assessment) and eventually a tax bill.
Respond promptly to protect your options and avoid escalation.
What IRS CP2057 Means
CP2057 is a pre-examination notice informing you that income reported to the IRS by third parties (employers, banks, brokers, clients) doesn't appear to match what you reported on your return. Unlike CP2000, CP2057 is not yet a formal proposed tax change — it's a request for you to review and self-correct if necessary.
The IRS sends CP2057 when their Automated Underreporter (AUR) program identifies a discrepancy but the IRS wants you to take corrective action voluntarily before they open a formal case. Common causes include unreported 1099 income, missing W-2 wages, or income that was included on the return but under a different line item.
Responding promptly and accurately to CP2057 can prevent escalation to a full CP2000 proposed assessment, which carries more formal penalties and may trigger interest from the original return due date. If the discrepancy is due to a return error, filing an amended return (Form 1040-X) is often the right response.
What the IRS Can Do If You Don't Respond
- Escalate to a CP2000 formal proposed assessment if you don't respond
- Assess additional tax, penalties, and interest based on the discrepancy
- Open a formal examination if the discrepancy is large or involves patterns of underreporting
What You Should Do Right Now
- 1
Pull your original return and compare it line-by-line to the income items listed on CP2057
- 2
Check whether the income was reported but on a different line or schedule
- 3
If the income is correct and was properly reported, respond in writing with an explanation and supporting documentation
- 4
If the income was omitted in error, file an amended return (Form 1040-X) to correct it
- 5
Do not ignore CP2057 — it is the IRS's way of giving you a chance to self-correct before they send a bill
Resolution Options Available to You
Frequently Asked Questions About IRS CP2057
Is CP2057 the same as CP2000?
No — CP2057 is earlier in the process. It's a notice asking you to self-review before the IRS takes formal action. CP2000 is a formal proposed assessment with a specific amount of additional tax. Responding to CP2057 can prevent CP2000 from being issued.
What should I do if the income on CP2057 was already on my return?
Respond in writing explaining where on your return the income was reported — including the specific line, schedule, and form. Attach a copy of the relevant return pages and any 1099s that show the income was included.
Should I file an amended return in response to CP2057?
If you genuinely underreported income, yes — file an amended return (Form 1040-X) as soon as possible. Voluntary correction before a formal assessment typically results in lower penalties.
What if I disagree with the income amounts on CP2057?
Contact the payer (employer, broker, client) who issued the incorrect 1099 or W-2 and request a corrected form. Then respond to CP2057 with the corrected form and an explanation.
Professional References
IRC: IRC §6201 — Assessment Authority; IRC §6662 — Accuracy-Related Penalties
IRM: IRM 4.19.2 — Automated Underreporter Program
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