What happens if I fill out the Form 1040X and get the amount that they owe me wrong?

Do I then have to re-file a 1040X to correct the 1040X or will they adjust the amount accordingly?

Also, they have one item in the CP2000 for a pension withdrawl (I have 2 such items) but when I called my old company pension company, they don't have a record of that amount that the CP2000 claims -- but they have the other one.

What do I do? Do I fill out the 1040X according to the IRS data (I'm assuming that this is the smartest way to resolve this thing quickly) -- and if so, then I have to assume that 20% was taken out already from that amount since the other withdrawl (which I have the original 1099-R for) took out 20% for federal income tax and it is the pension comany's standard policy to do so.

When I do the math, it is clear as day that the IRS made a mistake.

THANKS!

Frequently, when you receive a CP2000, they don't want you to file a 1040X. They just want you to resppond to the CP2000. Read what they want you to do, and do it, or call them if it is unclear what they want you to do.

Call the IRS at 1-800-829-1040 or the National Taxpayer Advocate 877-777-4778

If you make a math error, they'll probably just adjust it - if it's an error of content, you'd have to redo it.

If you actually had two withdrawals, then it sounds like the answer the company gave you was wrong and the IRS is right - if the company can't provide both 1099-R's, then ask for them from the IRS.

You don't exactly say what the IRS "clear as day" mistake is so it's hard to comment on that. But if for example you sold stocks and didn't report the sale on your tax return, they'd only have the sales info and not your purchase costs, so what they show could be much more than you actually owe - in that case they aren't hard at all to deal with when you give them the total info. If you think what they show on the CP2000 is wrong, and it might be, don't just file a 1040X as if it's correct.

From your question it sounds like maybe there were multiple items on the CP2000. You'd be ahead to call the number on the form before filing anything. Be sure to do it in the time allowed or you could give up your rights to disagree.