CP3219N Notice: Notice of Deficiency

The CP3219N Notice, also known as a Notice of Deficiency, is issued by the IRS when they determine that a taxpayer owes additional taxes. The notice explains the proposed changes to the taxpayer’s return and gives them the right to dispute the changes in U.S. Tax Court.

Key elements of the CP3219N Notice:

• Explanation of Adjustments: The notice will detail the changes the IRS proposes to the taxpayer’s return, often based on unreported income, incorrect deductions, or disallowed credits. These adjustments typically result in additional taxes owed.
• Right to Dispute: Taxpayers have 90 days to challenge the notice in tax court if they believe the IRS’s findings are incorrect. This period is the taxpayer’s opportunity to prevent the assessment of the proposed deficiency.
• Next Steps: The taxpayer can either accept the proposed changes and pay the additional taxes or file a petition in tax court. Instructions for both options are included in the notice.
• Consequences of Inaction: If the taxpayer does not respond within the 90-day period, the IRS will finalize the assessment of the additional taxes, and collection actions may follow, such as garnishment or liens.

The CP3219N Notice is an important communication that offers taxpayers a final opportunity to challenge the IRS’s proposed changes before additional taxes are officially assessed.