What Is a CP 3219A Notice and How Should You Respond?

Receiving a CP 3219A notice from the IRS can be concerning, as it signals a discrepancy between what you reported on your tax return and what third parties, such as employers or financial institutions, have reported. Known as a “90-day letter,” it gives you a limited time to respond before further action is taken.

Key Information on the Notice

The CP 3219A notice outlines proposed changes to your tax return based on third-party data. It details adjustments, additional tax liability, and any penalties or interest. The notice breaks down discrepancies, often listing income sources or deductions that differ from what was originally reported.

A response deadline is prominently displayed, typically giving you 90 days to either agree with the changes or dispute them. If no response is received, the IRS may issue a Notice of Deficiency, finalizing the tax assessment and potentially leading to collection actions. The notice also explains how to dispute the adjustments, including the option to file a petition with the U.S. Tax Court.

Common Situations Leading to the Notice

A CP 3219A notice is usually triggered by discrepancies between your return and third-party reports. These inconsistencies often stem from unreported income, filing mistakes, or corrections made by the IRS based on updated information.

Unreported or Discrepant Income

One of the most common reasons for receiving this notice is failing to report all income. The IRS receives copies of W-2s, 1099s, and other income-related documents. If your tax return does not match these records, the IRS will adjust it.

For example, if you earn freelance income and receive a 1099-NEC for $5,000 but do not include it on your tax return, the IRS will detect the omission. Underreporting investment income can also result in an adjustment. These discrepancies can lead to additional tax liability, interest, and penalties. The IRS may impose an accuracy-related penalty under Internal Revenue Code 6662, typically 20% of the underpaid tax if the discrepancy is due to negligence or a substantial understatement of income.

Filing Errors

Errors in preparing a tax return can also prompt a CP 3219A notice. These mistakes may include incorrect Social Security numbers, miscalculations, or failing to report all sources of income. Even minor errors, such as transposing numbers when entering wages, can result in IRS adjustments.

For instance, if you report $28,500 in wages instead of the correct $38,500 shown on your W-2, the IRS will correct the income amount. This adjustment could increase the tax owed, along with interest accruing from the original due date. If the corrected income exceeds eligibility thresholds for certain deductions or credits, you may lose those benefits. The IRS may also assess a failure-to-pay penalty under Internal Revenue Code 6651(a)(2), which starts at 0.5% of the unpaid tax per month, up to a maximum of 25%.

Adjusted Reporting

In some cases, the IRS revises a tax return based on corrected information received after filing. This can happen if an employer, financial institution, or other entity submits a corrected W-2 or 1099 form. The IRS may also adjust a return if it identifies errors in claimed deductions or credits.

For example, if you initially report $10,000 in mortgage interest deductions but your lender later issues a corrected Form 1098 showing only $8,000, the IRS will adjust the return, increasing taxable income and tax liability. Similarly, if you incorrectly claim the Earned Income Tax Credit but do not meet eligibility requirements under Internal Revenue Code 32, the IRS may disallow the credit and recalculate the tax owed. In such cases, the IRS may require additional documentation in future tax years before allowing similar credits or deductions.

Responding to the Notice

Reviewing the CP 3219A notice carefully is essential to determine how to proceed. Compare the IRS’s findings with personal records, such as pay stubs, bank statements, or tax documents. If the IRS’s information is incorrect, gather supporting documentation to dispute the adjustments.

If the proposed changes are accurate, you can agree to the adjustments by signing and returning the response form included with the notice. This may result in additional tax owed, which should be paid as soon as possible to minimize interest and penalties. The IRS offers payment options, including installment agreements for those unable to pay in full.

If you disagree with the IRS’s findings, submit a formal response with supporting evidence, such as corrected tax documents or letters from employers or financial institutions. Mail the completed form along with documentation to the address provided on the notice. In some cases, contacting the IRS directly may help clarify discrepancies.

If the matter remains unresolved after submitting a response, you can file a petition with the U.S. Tax Court within the 90-day deadline. Filing a petition allows an independent review before the IRS formally assesses the additional tax. Those considering this route may benefit from consulting a tax professional or attorney.

Potential Consequences if Not Handled

Ignoring a CP 3219A notice can lead to the IRS issuing a Notice of Deficiency, finalizing the tax assessment and legally establishing the amount owed. Once this occurs, you lose the opportunity to challenge the adjustments in U.S. Tax Court without first paying the disputed amount. The IRS will then begin collection efforts, which may include issuing a federal tax lien under Internal Revenue Code 6321, securing the government’s interest in your property. A lien negatively impacts creditworthiness, making it more difficult to obtain loans or refinance existing debt.

If the tax remains unpaid, the IRS can escalate enforcement actions by issuing a levy under Internal Revenue Code 6331, allowing them to seize bank accounts, wages, or other assets. Wage garnishments can take a significant portion of a paycheck, often leaving little for necessary living expenses. The IRS may also intercept future tax refunds and apply them toward the outstanding balance. Taxpayers with substantial unpaid liabilities could face passport restrictions under Internal Revenue Code 7345, preventing international travel if the debt exceeds $62,000 in 2024.

Contacting the IRS

Reaching out to the IRS can help clarify discrepancies and potentially resolve the issue before further action is taken. The CP 3219A notice includes contact information for the appropriate IRS department handling the case. Having all relevant documents ready before calling, such as tax returns, W-2s, 1099s, and the notice itself, can make the conversation more efficient.

If additional time is needed to gather supporting documentation or seek professional assistance, you can request an extension. While the standard response period is 90 days, the IRS may grant extra time in certain cases if a valid reason is provided. Written communication is often preferable when disputing adjustments, as it provides a clear record of correspondence. If the issue is complex or involves substantial amounts, consulting a tax professional or attorney can help ensure the response is properly structured and supported by relevant tax laws.