The Letter 3219B, also known as the Statutory Notice of Deficiency, is sent by the IRS to notify taxpayers that the IRS has determined they owe additional taxes after reviewing their return. This notice gives taxpayers the legal right to challenge the deficiency in U.S. Tax Court if they disagree with the IRS’s findings.
Key elements of Letter 3219B:
- Proposed Adjustments: The letter provides a detailed explanation of the proposed changes to the taxpayer’s return, such as adjustments to income, deductions, or credits. These changes typically result in additional taxes owed.
- Right to Challenge in Tax Court: Taxpayers have 90 days from the date of the letter to file a petition in U.S. Tax Court if they want to dispute the proposed deficiency. During this period, the IRS cannot take collection actions, such as levying assets.
- Settlement Options: If the taxpayer agrees with the IRS’s findings, they can settle the tax debt by paying the amount due or setting up a payment plan. The letter will include instructions for making payments or establishing an installment agreement.
- Consequences of Inaction: If the taxpayer does not respond within the 90-day period, the IRS will assess the additional taxes and may begin collection actions, such as wage garnishment or property liens.
The Letter 3219B is an important legal notice that provides taxpayers with the opportunity to challenge the IRS’s findings before additional taxes are assessed.