CP3219B Notice: Notice of Deficiency with Right to Petition Tax Court

The CP3219B Notice, also known as a Notice of Deficiency, is sent by the IRS to inform taxpayers that they owe additional taxes following a review of their return. The notice provides taxpayers with the opportunity to challenge the deficiency by petitioning the U.S. Tax Court within 90 days of receiving the notice.

Key aspects of the CP3219B Notice include:

1. Explanation of Deficiency
   The CP3219B Notice details the specific adjustments made by the IRS, including discrepancies in reported income, credits, or deductions. The notice includes a calculation of the proposed deficiency, which may involve additional taxes owed, as well as penalties and interest.
2. Right to Petition Tax Court
   Taxpayers receiving the CP3219B Notice have 90 days to file a petition with the U.S. Tax Court to dispute the IRS’s findings. During this period, the IRS is prohibited from taking collection actions, allowing taxpayers time to prepare for the court process if they choose to appeal.
3. Options for Settlement
   Taxpayers may:
   • Agree with the deficiency: Accept the IRS’s findings and pay the balance due.
   • Dispute the deficiency: File a petition to the Tax Court, presenting evidence to support their original return. Taxpayers must follow specific procedures and deadlines to ensure their petition is considered.
4. Potential Consequences of Non-Response
   If the taxpayer does not respond within the 90-day period, the IRS will assess the deficiency and may begin enforcement actions, such as placing liens or levies on property, to collect the debt.
5. Importance to Tax Debt Resolution
   The CP3219B Notice offers taxpayers a formal opportunity to dispute an IRS deficiency before it becomes final. By acting on this notice, taxpayers can protect their rights, challenge the assessment, and potentially reduce or eliminate the additional tax owed. Petitioning the Tax Court is an essential option for those who believe the deficiency is inaccurate or unjustified.

The CP3219B Notice underscores the importance of timely action in tax debt resolution, providing taxpayers with a legal pathway to dispute additional tax assessments.