A CP3219A is an IRS Notice of Deficiency that proposes a change to your income tax because information on your return differed from information the IRS received from others. Read the notice carefully and reply by the date listed; it explains how to respond if you agree or disagree and how to challenge the proposed change in U.S. Tax Court.
What to have in front of you
- Your CP3219A notice, including the dates and reply instructions.
- The enclosed Form 5564, Notice of Deficiency – Waiver.
- Your tax return and any income documents related to the items in the notice.
- Any corrected income document or statement you have received from the person or business that reported the information.
- Any information and signed statement you want the IRS to consider.
Why the IRS sent this notice
The IRS says it found differences between what you reported on your tax return and information it received from others, such as an employer or bank. The notice explains the proposed tax change and how the IRS calculated the amount.
The IRS says this notice is not a bill or an audit. It is a proposed change, and the notice gives you instructions for responding.
The amount on Form 5564 may differ from the amount on an earlier notice. The IRS says that is because not all items can be challenged in U.S. Tax Court.
Check the dates on your notice
Reply by the date listed on the notice. If you disagree, the IRS asks you to reply right away. It says it will work with you to resolve the issue during the 90-day response period.
The IRS says it cannot extend the time to respond. It also cannot extend the time to file a Tax Court petition. If the IRS does not hear from you and you do not file a petition, it says it will assess the proposed changes and send you a bill.
If you agree with the proposed changes
Follow the instructions in your notice. The IRS asks you to reply with the enclosed Form 5564.
If the notice is correct and you also have other income, credits or expenses to report, the IRS lists another step: complete Form 1040-X, Amended U.S. Individual Income Tax Return. Write “CP3219A” at the top and submit it with Form 5564 using a reply option in the notice.
If you disagree or have more information
Reply as soon as possible with the information you want the IRS to consider. Include Form 5564, supporting documents and a signed statement explaining which items you disagree with and why.
You can also call the number on your notice. The IRS says it can generally accept information over the phone.
If you received income considered nontaxable under state relief, the Infrastructure Investment and Jobs Acts or a similar reason, include a signed statement with the response form.
If someone reported incorrect information
Contact the person or business that reported the information. Ask for a corrected income document or a statement explaining why the information is wrong.
Tell the IRS as soon as possible if you are waiting for a correction or statement. Once you receive a corrected document, submit it with your reply. The IRS says it will continue working with you during the 90-day response period.
If you believe identity theft is involved
If someone used your name and Social Security number, the IRS says you can report identity theft. Send your reply with a completed Form 14039, Identity Theft Affidavit.
If you want to go to Tax Court
You have the right to file a petition with the U.S. Tax Court. Follow the instructions in your notice and file by the date listed on it. The IRS says the Tax Court cannot consider your case if the petition is filed late.
The IRS may work with you during the 90-day period, but that does not extend the time to file a petition. The IRS says you may also be able to resolve your disagreement with it.
The U.S. Tax Court’s Guidance for Taxpayers explains how to start a case. The IRS says you can download a petition form to file electronically or by mail.
How to send your reply
The IRS lists these reply options:
- Upload: Use the IRS document upload tool. You can upload photos or scans as JPG, PNG or PDF files.
- Fax: Use the fax number printed on your notice. If you use an online fax service, the IRS says to understand its privacy and security policies.
- Mail: Send your reply to the address in the top left corner of the first page of your notice.
Records, payment options and help
The IRS suggests keeping the notice and a corrected copy of your return for your records. You can get a transcript of your original return if needed. The IRS also suggests checking prior-year returns and filing an amended return if they have the same issue.
The IRS lists payment plans and offers in compromise for people who cannot pay in full. It says interest accrues on an unpaid balance until it is paid, and penalties may apply.
A tax professional can help you review the notice. You can authorize someone to contact the IRS on your behalf using Form 2848, Power of Attorney and Declaration of Representative. The IRS also lists in-person help at an IRS Taxpayer Assistance Center.
Where this comes from
IRS Letter CP3219A: Statutory Notice of Deficiency.