The IRS has sent out more than 3 million “math error” notices to taxpayers this year – including to yours truly.  If you’ve gotten one, don’t panic (like I did). The CP 2000, as it’s called,  is not a bill (yet) and may prove to be a big mix-up (like mine was).

Still, my first reaction to the CP 2000 was gut-wrenching. My heart dropped. Could it be? How?

It turns out – no. It wasn’t true at all. First things first, understand what the alleged error is. In my case it was a “failure to report” a 1099 from my literary agency. A quick glance at my 2008 IRS paperwork retrieved from my red accordian folder (why it pays to be organized) showed quite the contrary. I claimed that baby on Schedule C.  Ha! Take that!

But the burden is still mine (and my HR Block rep who helped me file last year) to prove to the IRS that they were, in fact, mistaken. This will require making photocopies, writing a letter and certified postage by the deadline.

About the deadline.  It started out as a huge inconvenience.  The notice arrived just around the 2009 tax filing season when I and my tax preparer are scrambling to get everything else done.  It had a March 30th deadline.   Do what I did and file an extension by calling 800-829-8310 if your notice was mailed from Brookhaven, Ogden, or Philadelphia. If from Atlanta, Austin, or Fresno the number is 800-829-3009. Visit the IRS site for more common Q&As.  

Take it from me – it’s not worth fretting over this. The IRS can be wrong. Just make sure you do your due diligence, stay organized and follow the IRS’s directions. Even though Uncle Sam may make mistakes, you don’t want to cross him!