The IRS sends a CP3219A notice to inform taxpayers about proposed changes to their tax return based on discrepancies found in third-party reporting. This notice can have serious implications if ignored, so understanding it and knowing how to respond is crucial.
What the CP3219A notice means
The CP3219A notice, also known as a Statutory Notice of Deficiency, notifies taxpayers that the IRS identified inconsistencies between their reported income and information provided by employers, banks, or other entities. The notice outlines the adjustments made to the taxpayer’s return and the additional tax owed, including any penalties or interest.
Taxpayers receiving this notice must address it promptly to avoid further consequences. Ignoring the notice may lead to the IRS assessing the proposed tax and initiating collection actions, such as placing liens or garnishing wages.
Options for responding to the notice
Taxpayers have 90 days from the date on the CP3219A notice to respond. During this period, they can either agree with the IRS’s proposed changes or challenge them. To agree, taxpayers should sign and return the response form included with the notice. Payment of the owed amount can be arranged through various IRS payment options.
To dispute the notice, taxpayers must file a petition with the U.S. Tax Court. This allows them to present evidence supporting their case without paying the proposed amount upfront. Professional tax advice can help prepare a strong petition.
The importance of acting quickly
Timely action prevents escalation and preserves the right to dispute the proposed changes. Taxpayers who miss the 90-day deadline lose the chance to challenge the notice in Tax Court. This makes it essential to review the CP3219A notice carefully, verify the information, and take the necessary steps before the deadline.
By addressing a notice of deficiency promptly, taxpayers can resolve discrepancies and minimize the risk of penalties or enforced collection actions.