Generally after a taxpayer receives a CP2000 notice, which proposes tax changes based on a mismatch in reported income from the tax payer and third-party sources, the tax payer will receive a CP3219 or Statutory Notice of Deficiency. Either the tax payer didn’t respond to the CP2000 or the IRS didn’t agree with the response. The CP3219 notice is also known as the 90-day letter because you have 90 days to petition the Tax Court if you disagree with the assessment.
The IRS Notice CP3219 Proposes an Increase in Tax
The Notice of Deficiency, shown below, explains the increase in tax and how the IRS determined the increase. It also includes the penalty for the substantial tax understatement.
Image of a CP3219 or Notice of Deficiency
Avoid Scams Related to the IRS Notice of Deficiency (CP3219)
Be wary of scams related to deficiency notices. The IRS will never (1) demand immediate payment over the phone, (2) demand payment without giving you an opportunity to contest or appeal the assessment, (3) ask for debit or credit card numbers over the phone, (4) ask for you to pay with gift cards, or (5) threaten your arrest or other law enforcement action. When in doubt, call the IRS directly.
Accelerated Tax Solutions Responds to Notices of Deficiency
If you receive either of these two notices, our legal team can assure that your response puts you in the best possible position. Not only does our legal team know your rights, but they also know how the IRS operates. Sending in the wrong information or the right information to the wrong department can exacerbate your situation or at best delay a favorable outcome.