IRS Notice CP3219A – The All Access Pass to US Tax Court to Dispute Your Taxes

Receiving a notice from the Internal Revenue Service (IRS) can be an intimidating experience. Among the various notices the IRS sends, the CP3219A, formally known as the Statutory Notice of Deficiency, stands out as one of the most critical. This notice is not a bill, nor is it a routine inquiry; it is a legal document that serves as your official notification of a proposed tax deficiency and your gateway to challenging the IRS in United States Tax Court before you have to pay the disputed amount. Understanding the legal significance of the CP3219A and the strict deadlines associated with it is paramount for any taxpayer who receives one. 

The Legal Foundation: What Gives the CP3219A Its Power? 

The authority for the IRS to issue a Statutory Notice of Deficiency comes directly from the Internal Revenue Code (IRC). Two sections are particularly important: 

• Internal Revenue Code § 6212: This section authorizes the Secretary of the Treasury to send a notice of deficiency to a taxpayer via certified or registered mail if the Secretary determines there is a deficiency in income, gift, estate, or certain excise taxes. The notice must be sent to the taxpayer's "last known address" to be considered valid. 

• Internal Revenue Code § 6213: This section provides the taxpayer with a crucial right. Upon the mailing of the notice of deficiency, the taxpayer has 90 days (or 150 days if the notice is addressed to a person outside the United States) to file a petition with the U.S. Tax Court for a redetermination of the deficiency. Critically, this section also restricts the IRS from assessing or collecting the proposed deficiency during this 90-day (or 150-day) period, and if a petition is filed, until the decision of the Tax Court has become final. 

These two sections work in tandem to create a system where the taxpayer has a prepayment forum to dispute a proposed tax liability. The CP3219A is the key that unlocks the door to that forum. 

CP3219A vs. CP2000: A Critical Distinction 

Many taxpayers confuse the CP3219A with another common IRS notice, the CP2000. While both relate to discrepancies in reported income, they have vastly different legal implications. The CP2000 is a notice of proposed changes to your tax return, typically generated by the IRS' Automated Underreporter (AUR) program when there is a mismatch between the income you reported and the information reported by third parties (like employers or banks). 

A CP2000 is essentially a 30-day letter. It is not a statutory notice of deficiency and does not grant you the right to petition the US Tax Court. It is the opening of a conversation with the IRS. If you disagree with the CP2000, you respond with documentation and explanations. If you and the IRS cannot reach an agreement after the CP2000 process, the IRS will then issue a CP3219A, the statutory notice of deficiency. 

What to Do When You Receive a CP3219A Notice 

Receiving a CP3219A requires immediate and careful attention. You have a limited window to act. Here are the steps you should take: 

• Read the Notice Carefully: The notice will explain the proposed changes to your tax liability and the reasons for them. It will also include Form 5564, Notice of Deficiency - Waiver. Do not sign this form without fully understanding the consequences. 

• Decide if You Agree or Disagree: You have two primary paths. 

  • If you agree: You can sign the Form 5564 waiver and return it to the IRS. This allows the IRS to assess the tax immediately. You will then receive a bill and can make payment arrangements if necessary. 

  • If you disagree: You must decide how to challenge the IRS' determination. You can continue to work with the IRS during the 90-day period, but this does not stop the clock on your deadline to file a US Tax Court petition. 

• The 90-Day Deadline and the US Tax Court Petition: This is the most critical aspect of the CP3219A. If you wish to dispute the deficiency in Tax Court, you must file your petition within 90 days of the date the notice was mailed. This deadline is absolute and, according to the Tax Court, jurisdictional. 

  
  

Take Action and Protect Your Rights 

The IRS CP3219A is a serious notice with significant legal consequences. It represents a critical juncture in a tax dispute, offering a final opportunity to challenge the IRS in US Tax Court before an assessment is made. Given the strict and unforgiving nature of the 90-day deadline, it is crucial to act promptly and strategically. 

If you've received a CP3219A, consider consulting with a qualified tax professional immediately to understand your options and ensure your rights are protected. 

For more insights and deep dives into tax topics on how to fix your IRS problems, don't forget to watch the free video, The Ultimate Guide to Solving Your IRS Tax Problems with the QR Code or the button below. 

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