Notice CP3219A: What It Is and How to Respond

Understanding the Contents of Your Notice

Your IRS Notice CP3219A contains specific details about proposed changes to your tax return, resulting in a potential tax increase known as a deficiency. You should locate the date on the notice, as this starts the countdown for your response. The notice is not a bill for taxes owed, but a formal, legal notification of the IRS’s intent to assess additional tax.

The notice will clearly state the tax year in question and the proposed deficiency amount. This figure represents the additional tax the IRS believes you owe before any penalties or interest are applied. A separate section, often titled “Explanation of IRS Changes,” will detail each specific adjustment the IRS made to your income, deductions, or credits. This section is the core of the notice, as it outlines the justification for the proposed deficiency and is what you will need to analyze to determine your course of action.

A prominent part of the notice will explain your deadline to respond, which is 90 days from the date of the notice. If the notice is addressed to a person outside of the United States, this period is extended to 150 days. This timeframe is a statutory deadline, meaning it is set by law and cannot be extended by the IRS. Missing this deadline results in the IRS automatically assessing the proposed tax, and you will lose the right to challenge the changes in the U.S. Tax Court before paying.

Deciding How to Respond

After reviewing the notice, you have three distinct paths. Your first option is to agree with the IRS’s proposed changes if you find them to be correct. Choosing this path will lead to the IRS officially assessing the tax, and you will receive a separate bill for the amount owed plus any accrued interest and penalties.

A second option is to disagree with the proposed deficiency and challenge the IRS’s position before making any payment. This is accomplished by filing a petition with the U.S. Tax Court within the 90-day deadline. This action pauses the IRS’s ability to assess or collect the proposed tax until the court has made a decision.

The third strategic choice involves paying the disputed tax amount first and then filing a formal claim for a refund. This approach allows you to contest the IRS’s findings without petitioning the Tax Court. If you choose this route, you would pay the amount shown on the CP3219A and then file a separate amended return (Form 1040-X) to claim a refund of the amount you believe you overpaid. The main consequence of this choice is that you are without the funds during the entire dispute and refund claim process.

Filing a Petition with the U.S. Tax Court

Preparation

If you choose to dispute the notice, you must prepare and file a petition with the U.S. Tax Court. The primary document required is the Petition form, officially designated as Form 2. This form is available on the U.S. Tax Court’s website and serves as your formal request for the court to hear your case.

You will need to reference your CP3219A notice to fill in key details on the petition, including the date of the notice and the specific tax years involved. The most important part of the petition is the section where you must state, in clear and concise terms, each error you believe the IRS made and the facts that support your position. You must also attach a complete copy of the CP3219A notice to your petition; failure to do so can result in your case being dismissed.

Procedural Action

Once the petition form is fully completed and a copy of the CP3219A is attached, you must mail the original petition package to the U.S. Tax Court at 400 Second Street, NW, Washington, DC 20217. It is highly recommended to use a U.S. Postal Service certified or registered mail service to obtain proof of timely mailing.

A filing fee of $60 must be included with your petition, payable by check or money order to the “Clerk, United States Tax Court.” If you cannot afford the fee, you can submit an Application for Waiver of Filing Fee along with your petition. After the court processes your petition, it will assign your case a unique docket number and send you a formal acknowledgment. This docket number will be used on all future correspondence related to your case.

Actions if You Agree with the Notice

If you review the CP3219A and agree with the IRS’s proposed changes, you can formally accept the deficiency. The notice package includes a waiver form, such as Form 5564, Notice of Deficiency – Waiver. By signing and returning this form, you give up your right to petition the Tax Court and allow the IRS to assess the tax immediately.

Alternatively, you can agree by simply doing nothing. If you do not respond within the 90-day period, the IRS will automatically finalize the assessment at the end of that timeframe. In either case, the next step from the IRS is not immediate collection. The agency will first formally assess the tax, interest, and any applicable penalties.

Following the assessment, the IRS will send a separate, formal bill, often a Notice CP22A, which will state the final amount you owe and provide a payment due date. Once you receive this bill, you will have several payment options. These include paying the full amount online or by mail, or applying for a formal payment plan, such as an installment agreement, if you are unable to pay the full balance at once.