May I have some help with IRS Notice CP2000 and sale of primary residence?

the CP2000 reports income that IRS was notified but you did not report on your income tax return

this was probably from the 1099 they received(as did you) and should have been claimed on Sch D even if you were allowed the exclusion on the sale--this avoids getting the CP2000 even tho you really don't have to report the sale when you can also claim the exclusion

If you got a form 1099-S for the sale of your husee, you were supposed to report it on schedule D. If i was your main home for two of the 5 years right before le, and you owned it for 2 of those same 5 years, then the first 250K of gain, 500K on a joint return is tax free. If you qualify for he exclusion but that's their issue, you need to file a correct schedule D and you'll be ok.