1. What your notice says, in plain English
The IRS received income and payment information from third parties and compared it to your 2024 tax return. It found what it believes are two discrepancies and is proposing changes to your return. This is not a bill and it is not an audit — it is a proposal, and nothing is final until you respond or the response date passes.
What the IRS is proposing:
| Item | Amount |
|---|---|
| Additional tax proposed | $4,812 |
| Accuracy-related penalty proposed | $962 |
| Interest proposed | $214 |
| Total proposed balance | $5,988 |
Why the IRS is proposing this — two separate issues:
- Brightline Media LLC — $18,500 (you dispute this). The IRS received two 1099-NEC forms from Brightline Media LLC, each showing $18,500, and counted both. Your records show Brightline issued an original 1099-NEC and then a second, corrected 1099-NEC for the same work after changing payroll providers. You reported the income once — $18,500 on Schedule C — which is correct. The IRS appears to have counted the same income twice.
- Fifth Third Bank — $112 interest income (you agree with this). The IRS received a 1099-INT from Fifth Third Bank showing $112 in interest income that was not reported on your return. You acknowledge this was omitted in error.
Your response will address both items: dispute the Brightline double-count with evidence, and agree to the Fifth Third Bank addition.
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2. Your recommended path
The honest path here is a split response: agree on one item, dispute the other.
The $112 Fifth Third Bank interest income was omitted and you agree it should be added. That is straightforward.
The Brightline Media $18,500 discrepancy is a documentation problem, not a real underreporting. You have the invoices, the bank deposits, and — critically — both 1099-NEC forms showing the original and the corrected version for the same work. That evidence directly explains why two forms appear in IRS records for one payment. Your response should present that evidence clearly and ask the IRS to count the income once.
What this means for the proposed amounts:
If the IRS accepts your dispute on the Brightline item, the only additional income would be the $112 Fifth Third Bank interest. The proposed additional tax of $4,812 and the proposed penalty of $962 are driven primarily by the $18,500 double-count. Once that is resolved, the remaining understatement from the $112 omission would be far below the substantial-understatement threshold for individuals (the greater of 10% of the required tax or $5,000) — meaning the accuracy-related penalty may not apply at all to the remaining amount. You should say so explicitly in your response.
Your deadline is September 2, 2026. Mail your response at least a week before that date — the date printed on the notice governs. If you need more time, the notice's reply options include sending an extension request.
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3. Your response letter
--- [Your name] [Your address] [City, State, ZIP] [Phone number — fill in by hand] Date: _________________________ (fill in by hand) Internal Revenue Service [Use the address printed on page 1 of your notice] Re: Response to CP2000 Notice — Tax Year 2024 SSN: ___-__-____ (fill in by hand) (Note: The SSN line above is intentionally left blank for your handwritten entry. Never send your Social Security number pre-printed on a document you mail.) --- Dear IRS CP2000 Unit, I am writing in response to the CP2000 notice I received for tax year 2024. I am completing and enclosing the Response form that came with the notice. My response addresses two separate items: one I agree with and one I dispute. --- ITEM 1 — AGREED: Fifth Third Bank, $112 interest income I agree that I omitted $112 in interest income from Fifth Third Bank from my 2024 return. I accept this adjustment. --- ITEM 2 — DISPUTED: Brightline Media LLC, $18,500 — duplicate 1099-NEC I dispute the proposed adjustment related to Brightline Media LLC. The IRS received two 1099-NEC forms from Brightline Media LLC, each showing $18,500. However, both forms represent the same income for the same work performed in 2024. Brightline Media issued an original 1099-NEC and then issued a second, corrected 1099-NEC for the identical amount after changing payroll providers. There was one engagement, one payment, and one amount: $18,500. I reported the full $18,500 once on Schedule C of my 2024 return, which is correct. The IRS notice counts this income twice, resulting in a proposed $18,500 phantom addition that does not reflect any actual unreported income. I am enclosing the following documents in support of this dispute: 1. Both 1099-NEC forms from Brightline Media LLC — the original and the reissued/corrected form — showing the same $18,500 amount for the same work 2. Invoices to Brightline Media LLC totaling $18,500 for 2024 3. Bank deposit records matching $18,500 in total receipts from Brightline Media LLC These documents together show that $18,500 was earned once, deposited once, and reported once. I respectfully ask the IRS to remove the duplicate $18,500 from the proposed adjustment. --- EFFECT ON THE PROPOSED PENALTY If the Brightline Media dispute is resolved as described above, the only remaining understatement would be the $112 Fifth Third Bank interest income. For individuals, the substantial-understatement threshold is the greater of 10% of the required tax or $5,000. An understatement of $112 does not meet that threshold. I respectfully ask that the accuracy-related penalty of $962 not be asserted. My separate penalty statement is enclosed. --- I declare under penalties of perjury that the statements I have made in this letter and in any accompanying documents are true, correct, and complete to the best of my knowledge and belief. Signature: _________________________ (sign by hand) Name (printed): _________________________ Date: _________________________ (fill in by hand) ---
4. Your evidence checklist
Gather copies of everything below before you send your response. Send copies only — never send originals.
For the Brightline Media dispute:
- [ ] Original 1099-NEC from Brightline Media LLC — the first form issued, showing $18,500
- [ ] Corrected/reissued 1099-NEC from Brightline Media LLC — the second form issued after the payroll provider change, also showing $18,500
- [ ] Invoices to Brightline Media LLC — all invoices for 2024 work, totaling $18,500
- [ ] Bank deposit records — statements or deposit slips showing $18,500 received from Brightline Media LLC in 2024 (no more, no less)
- [ ] Your 2024 Schedule C — showing the $18,500 reported as income (a copy of the relevant page of your filed return)
For the Fifth Third Bank agreed item:
- [ ] 1099-INT from Fifth Third Bank — showing the $112 interest income (helpful to include so the IRS can match it to your agreement)
For the penalty relief statement (see Section 5):
- [ ] Your signed penalty relief statement (drafted in Section 5 below)
Completed Response form:
- [ ] The Response form that came with your CP2000 notice — completed, indicating agreement on the Fifth Third item and disagreement on the Brightline item
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5. Penalty relief
The correct lever here is a request that the accuracy-related penalty not be asserted — based on reasonable cause and good faith.
First-Time Abate does not apply here. The IRS applies First-Time Abate only to failure-to-file, failure-to-pay, and failure-to-deposit penalties. The penalty a CP2000 proposes is the accuracy-related penalty, and First-Time Abate never applies to it. The correct approach is to ask the IRS not to assert the penalty by showing reasonable cause and good faith.
Two grounds support your request:
- The dispute itself: The $962 penalty is proposed on the full $4,812 additional tax, which is driven by the Brightline double-count. If the IRS accepts your dispute, the remaining understatement ($112) does not meet the substantial-understatement threshold (the greater of 10% of the required tax or $5,000), and the penalty basis disappears.
- Reasonable cause and good faith: Even if some penalty basis remained, you acted in good faith — you reported the Brightline income correctly and in full. The discrepancy arose from a payer's administrative action (reissuing a 1099-NEC after a payroll provider change), not from any carelessness or neglect on your part.
Include this signed statement with your response:
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Penalty Relief Statement — Reasonable Cause and Good Faith
Tax Year 2024
SSN: ___-__-____ (fill in by hand)
I am requesting that the IRS not assert the accuracy-related penalty of $962 proposed in the CP2000 notice for tax year 2024.
The proposed penalty is based primarily on the proposed addition of $18,500 from Brightline Media LLC, which I am disputing. As explained in my response letter, Brightline Media issued two 1099-NEC forms for the same work — an original and a corrected reissue after a payroll provider change — and I reported the income correctly and once on Schedule C. The proposed double-count does not reflect any actual unreported income, and I acted with ordinary care in preparing my return.
If the Brightline dispute is resolved in my favor, the only remaining understatement is $112 in interest income from Fifth Third Bank. That amount does not meet the substantial-understatement threshold for individuals (the greater of 10% of the required tax or $5,000), and the accuracy-related penalty would not apply to it.
To the extent the IRS considers any penalty, I ask that it not be asserted because I acted in good faith and had reasonable cause: I reported all income I knew I had received, I had documentation supporting my return, and the discrepancy arose entirely from a payer's administrative reissuance of a 1099-NEC — a circumstance outside my control and not the result of negligence.
I declare under penalties of perjury that the statements above are true, correct, and complete to the best of my knowledge and belief.
Signature: _________________________ (sign by hand)
Name (printed): _________________________
Date: _________________________ (fill in by hand)
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No outcome is promised. The IRS may remove or reduce the penalty where it finds reasonable cause and good faith — that is the standard the IRS applies, and your facts support making the request.
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6. How to send it
Send your complete response package — the Response form, your letter, your penalty statement, and all document copies — through a channel printed on your own notice. The IRS lists these options:
- Mail: Use the mailing address printed on page 1 of your notice. That address is in the top left corner of the first page. Do not use an address from the internet or from anyone else's notice — addresses vary by IRS processing site and using the wrong one can misroute your response.
- Fax: Use the fax number printed on your notice, if one is shown.
- Document upload tool: If your notice offers an IRS document upload tool, you may use that.
Your response deadline is September 2, 2026. Mail at least a week before that date — the date printed on page 1 of your notice governs. Keep proof of everything you send: make a complete copy of your package before sending, and keep a record of when and how you sent it.
The address to use is the one printed on page 1 of your notice.
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7. What happens next
After you send your response, the IRS will review it and the documents you provided. There are several possible outcomes:
- The IRS accepts your dispute in full. The Brightline double-count is removed, the only adjustment is the $112 Fifth Third Bank interest, and the penalty is not asserted. The IRS may send a revised notice or a closing letter.
- The IRS accepts your dispute in part. The IRS may agree on some items and not others, and send a revised proposal.
- The IRS does not accept your dispute. The IRS may send another notice and a bill, or proceed to issue a Statutory Notice of Deficiency (CP3219A).
If you receive a Statutory Notice of Deficiency (CP3219A): That notice starts a strict 90-day window to petition the U.S. Tax Court. The Tax Court cannot consider a petition filed after that window closes. If you receive that notice, read Section 8 immediately.
If you do not respond by September 2, 2026: The IRS states it will send a Statutory Notice of Deficiency, which starts that 90-day Tax Court window. That is a significantly worse position than responding now.
IRS processing times vary. If you have not heard back after 60 days, you may follow up using the contact information printed on your notice.
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8. When to stop and hire a professional
The following situations require a licensed tax professional — a CPA, Enrolled Agent, or tax attorney — before you respond to anything:
- You receive a Statutory Notice of Deficiency (Letter 3219 / CP3219A). That notice starts a strict 90-day window to petition the U.S. Tax Court, and the Tax Court cannot consider a late petition. A professional should handle this immediately.
- Income appears on the notice from a payer you have never worked with. That may indicate identity theft. The IRS process involves Form 14039, Identity Theft Affidavit, and a licensed professional should guide it.
- Any IRS letter contains criminal-investigation language. Speak with a tax attorney before responding to anything.
- You cannot reconcile the proposed amounts at all. A CPA or Enrolled Agent can pull your IRS transcripts and reconstruct what happened.
- A business return of yours is under IRS examination. Responses to a business examination need to be coordinated by a professional.
None of those flags apply to your current situation based on the information you provided. Your situation — a disputed duplicate 1099-NEC with clear documentary evidence and one agreed small omission — is one this response pack is designed to help you address yourself. If anything changes, or if the IRS's reply raises new issues you did not expect, reassess at that point.