CP3219A: the statutory notice of deficiency

The CP3219A follows from a difference between what you reported and what third parties reported about you, the same kind of mismatch a CP2000 raises. It comes with Form 5564, Notice of Deficiency – Waiver.

The amount on Form 5564 may not match the amount on an earlier notice. The IRS explains that this is because not every item can be challenged in the U.S. Tax Court.

Follow the notice’s instructions and reply with the enclosed Form 5564. If the notice is right but you also have other income, credits or expenses to report, complete Form 1040-X, write “CP3219A” at the top, and send it with Form 5564.

If you do not reply and do not petition the Tax Court, the IRS assesses the proposed changes and sends you a bill, and interest accrues on the unpaid balance until it is paid in full.

Reply right away. The IRS says it will work with you to resolve the issue during the 90-day period: send the information you want it to consider with a signed statement explaining which items you disagree with and why, or call the number on the notice, since it can generally take information by phone.

If a form someone filed about you is wrong, contact the business or person who issued it and ask for a corrected form or a statement, tell the IRS you are waiting for it, and send it when it arrives. If someone else used your name and Social Security number, reply with Form 5564 and a completed Form 14039, Identity Theft Affidavit.

You have the right to petition the U.S. Tax Court, and the date to do it is on the notice. The Tax Court cannot consider a petition filed late, and working with the IRS during the 90 days does not extend that date. Nor can you get an extension of time to respond to the notice itself.

You do not have to go to Tax Court; the IRS says you may be able to resolve the dispute with it directly. But if you might want to, the date on the notice is the one to plan around, and the Tax Court publishes guidance and a petition form you can file electronically or by mail.