IRS notices
Responding to IRS notices with AI.
Upload a CP2000 or any other IRS notice and get a plain-English read of what the IRS is proposing, the response date printed on it, the client’s options and a first draft of the reply, with irs.gov pages as sources.
How it works
The IRS Notice Response assistant, step by step.
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1
Open the IRS Notice Response assistant
One of the ready-made assistants for accounting firms in your workspace.
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2
Upload the notice and the return
PDF scans work best when the text is selectable. Add the client’s documents that bear on the items in question.
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3
Understand it, then draft
Ask what the notice proposes and why, what the response options are, and for a first draft of the reply. Web search can read the IRS’s own page for that notice.
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4
Review before it goes out
Check every figure against the return and the source documents, confirm the deadline on the notice, and sign the response yourself.
What to ask
Requests that work well.
Specific requests get better answers. Ask it to quote or cite what it relied on, so checking is quick.
- Example request: Explain this CP2000 in plain English: what income does the IRS say was left off, and what is the proposed change?
- Example request: What is the response date on this notice, and what happens if we miss it?
- Example request: Compare the 1099-B amounts in the notice with the basis on the client’s Form 8949.
- Example request: Draft a response disagreeing in part, with the supporting documents listed.
- Example request: Write a short email explaining this notice to the client.
- Example request: Find the IRS page for this notice number and summarize the options it lists.
What AI does, and what stays with your professionals.
Where Zrico helps
- Reading a notice and explaining it in plain English
- Lining up the IRS’s figures against the return and source documents
- First drafts of response letters and client emails
- Finding the IRS’s own explanation of the notice on irs.gov
Your firm’s responsibility
- Confirming every figure and the response date on the notice
- Deciding whether to agree, partly agree or disagree
- Whether tax return information goes into the workspace, and on what basis under section 7216
- Signing and sending the response
Tax return information and section 7216
Return information you choose to use stays in your firm’s own workspace and is not used to train AI models. By default every AI request goes to Claude and is processed only in the United States. GPT and Gemini are off unless your firm owner turns them on; their processing is not limited to the US, so for tax return information keep them off or get the consent the rules require. Read how Zrico fits accounting firms for more.
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Your firm’s own workspace
Its own application and databases at its own address, never shared with another firm.
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Never used to train AI
Anthropic, OpenAI and Google do not train their models on your prompts, files or answers.
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Claude runs in the US
Claude, the default, is processed only in the United States. If your firm owner turns on GPT or Gemini, those requests are not limited to the US.
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Retention you set
Keep conversations, or have them deleted after a period you choose.
Questions
IRS notices: common questions.
Can AI answer an IRS notice?
It can explain the notice, compare the IRS’s figures with the return and draft a response, which saves much of the first hour. A preparer still checks the figures, decides the position and signs the reply.
What is a CP2000?
A CP2000 is the IRS’s proposed adjustment when income, payments or credits reported to it by third parties do not match the return. It is not a bill or an audit; the taxpayer can agree, partly agree or disagree by the date on the notice. See the IRS page linked below.
Is it safe to upload a client’s notice and return?
Uploads stay in your firm’s own workspace and are never used to train AI. By default every AI request goes to Claude and is processed only in the United States. GPT and Gemini are off unless your firm owner turns them on; their processing is not limited to the US, so for tax return information keep them off or get the consent the rules require.
Does it know the deadline?
It reads the response date printed on the notice when the text is legible, but always confirm the date on the notice yourself.
Guides
Other use cases
General information, not legal, tax or accounting advice. AI output can be wrong and must be reviewed by a qualified professional before you rely on it.
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