Every year across Central Illinois — especially in Peoria, East Peoria, Pekin, Morton, Washington, Bloomington-Normal, and Galesburg — taxpayers receive IRS notices stating that their reported income doesn’t match the IRS’s records. These letters may come as CP2000 notices, “Proposed Assessments,” or “Income Discrepancy” alerts. No matter the format, it’s unnerving to be told the IRS thinks you earned more than you reported.

For many people in the Peoria area, this is the first moment they realize something on their return may not align with the IRS’s automated data. But most of the time, the cause isn’t fraud or intentional underreporting — it’s a simple mismatch, a missing form, or a corrected document the taxpayer never saw.

Total IRS Relief helps Central Illinois taxpayers fix these notices, reduce or eliminate the proposed balances, and prevent escalation into garnishments, liens, or aggressive IRS collection actions. And the key to resolving these notices quickly is understanding why the IRS thinks income was underreported in the first place.

What the IRS Means by “Underreported Income”

When the IRS says you underreported income, it means the numbers on your tax return don’t match the numbers the IRS received from employers, payment processors, financial institutions, state agencies, or contractors. These organizations automatically send copies of all income-related forms to both you and the IRS.

These include:

• W-2s

• 1099-NECs

• 1099-MISCs

• 1099-Ks

• 1099-Bs for investment sales

• 1099-Rs for retirement income

• Interest and dividend statements

• Unemployment forms

• Gambling winnings

If even one form is missing, incorrect, or late — or if the IRS receives a corrected form after you’ve already filed — the system flags your return.

This happens frequently in Central Illinois because many residents work a mix of W-2 jobs, seasonal roles, gig work, manufacturing shifts, and part-time supplemental income. The automated matching system can’t always keep up with these patterns.

Why Underreporting Notices Are Common in Peoria and Central Illinois

The income landscape in Central Illinois is more diverse than many people realize. Major employers, hospitals, factories, logistics companies, and remote-work employers all contribute to income complexity.

Manufacturing and shift work

Peoria, East Peoria, and surrounding towns have large numbers of workers in:

• Manufacturing

• Assembly

• Warehousing

• Heavy equipment

• Transportation and logistics

Shift changes, seasonal adjustments, overtime, and multiple employers can produce mismatches or missing W-2s.

Gig work and side income

Many Central Illinois residents pick up supplemental income from:

• Delivery apps

• Rideshare driving

• Freelance trades

• Landscaping

• Handyman services

• Online sales

These often generate 1099s that taxpayers overlook.

Remote work for out-of-state employers

It’s increasingly common for Peoria-area residents to work remotely for companies in Chicago, other states, or even multiple states throughout the year. Multi-state W-2 coding errors lead to mismatches.

Healthcare and education

Nurses, technicians, hospital administrative staff, and teachers frequently work:

• Overtime

• Extra shifts

• Summer school

• Seasonal assignments

These create varying pay patterns the IRS flags easily.

Retirement and pension income

Central Illinois has a high proportion of retirees receiving:

• Pension distributions

• 401(k) withdrawals

• IRA income

• Social Security

• Annuities

One incorrect 1099-R is enough to trigger an IRS notice.

1099-K confusion

Payment platforms often issue 1099-Ks for:

• Online marketplace sales

• Reimbursements

• Personal transfers

• Split expenses

The IRS assumes these are business profits.

Union payroll complexity

Union members often deal with:

• Multiple employers

• Supplementary pay

• Retroactive wage corrections

• Apprenticeship stipends

These can create IRS mismatches.

Each of these patterns is common in Central Illinois — and almost all of them are fixable.

The CP2000: The Notice Most People Receive

The CP2000 outlines:

• The income the IRS believes you earned

• The income you actually reported

• A proposed tax balance

• Penalties and interest

Despite how it looks, the CP2000 is not a bill. It is a proposal — often based on incomplete or inaccurate information.

Total IRS Relief frequently corrects or reduces CP2000 balances by presenting accurate documentation to the IRS.

Common Central Illinois Scenarios That Trigger Underreporting Notices

A taxpayer forgot a W-2 from a short-term job

Seasonal and part-time roles frequently produce W-2s that get overlooked.

A gig worker didn’t see a digital 1099

Apps like DoorDash and Uber often send forms electronically.

A retiree has multiple 1099-Rs

Each pension administrator sends its own form; missing one creates a mismatch.

A teacher receives a stipend or extra-duty pay

Supplemental pay often arrives with its own tax reporting.

A manufacturing worker receives a corrected W-2

Payroll systems issue corrected W-2s more often than people realize.

A taxpayer sells personal items online

A 1099-K makes the IRS think all sales were business income.

A family member transfers funds

Personal transfers look like income unless explained.

These are everyday situations in Peoria and surrounding towns — and resolving them is possible once the facts are analyzed.

How Total IRS Relief Fixes Underreporting Problems

Reviewing IRS transcripts

The first step is retrieving your Wage & Income Transcript to see exactly which forms the IRS has on file.

Comparing your real income to IRS records

Total IRS Relief reviews your W-2s, 1099s, investment records, retirement statements, bank activity, and any supporting documents to determine the true income picture.

Identifying non-income deposits

Transfers, reimbursements, loan repayments, and shared expenses must be clarified.

Preparing corrections or an amended return

If your original return needs updates, Total IRS Relief prepares the corrections. If the IRS is wrong, a detailed dispute is created.

Writing a complete response to the IRS

This includes:

• A clear narrative

• Supporting documentation

• Reconciled numbers

• Any amended forms

The IRS responds best to clean, organized information — not long, unfocused explanations.

Protecting you from escalation

If the IRS begins moving toward collection, Total IRS Relief can place your account on hold while the issue is reviewed, preventing garnishments or bank levies.

Why Responding Alone Often Leads to Bigger Problems

Taxpayers who try to resolve underreporting notices themselves often:

• Agree to incorrect IRS numbers out of fear

• Provide too much information

• Miss supporting documents

• Trigger additional IRS questions

• Wait too long to respond

Professional representation avoids these pitfalls.

Final Thoughts

Underreporting notices are extremely common in Peoria and Central Illinois due to diverse income sources, gig work, manufacturing shifts, retirement distributions, and online sales — all of which the IRS’s automated systems frequently misinterpret.

The good news is that nearly all of these notices can be corrected with the right documentation and response strategy.

Total IRS Relief helps Central Illinois taxpayers resolve underreporting issues, challenge incorrect IRS assumptions, and prevent escalation into enforcement.