CP3219A Notice: Statutory Notice of Deficiency

The CP3219A Notice, also known as a Statutory Notice of Deficiency, is issued by the IRS when they determine that a taxpayer owes additional taxes after reviewing their return. The notice explains the proposed adjustments and gives the taxpayer the opportunity to challenge the IRS’s findings in tax court.

Key points in the CP3219A Notice:

• Explanation of Deficiency: The notice provides details of the IRS’s proposed changes to the taxpayer’s return, which may involve adjustments to reported income, deductions, or credits. These changes typically result in a balance due.
• Right to Dispute in Tax Court: Taxpayers have 90 days from the date of the notice to file a petition in U.S. Tax Court to dispute the IRS’s determination. During this period, the IRS cannot take any collection actions.
• Settlement Options: If the taxpayer agrees with the IRS’s findings, they can pay the additional taxes owed or set up a payment plan. The notice will include instructions for paying the balance due.
• Consequences of Inaction: If the taxpayer does not respond to the notice within the 90-day window, the IRS will assess the additional taxes and may initiate collection actions, such as garnishing wages or placing liens on property.

The CP3219A Notice is a critical IRS communication that offers taxpayers a chance to contest the deficiency before additional taxes are officially assessed.