Tax Relief

How to Respond to IRS Letter CP3219A

IRS Letter CP3219A is sent when the IRS receives information about you that is different from what you reported on a tax return. The notice will inform you whether the proposed changes cause an increase or decrease in your tax liability. Be sure to open and read through this letter immediately upon receipt as your time to respond will be limited. Here’s a look at your options for responding.

How to respond to IRS Letter CP 3219A

How to Respond to IRS Letter CP3219A
IRS Letter CP3219A

The way you respond will depend on whether you agree with the proposed changes or not. Check the return in question against the information in the letter to figure out where the discrepancy came from. You may want to hire a tax representative to help you.

If you agree…

If you decide that you agree with the proposed changes, there will be a Notice of Deficiency form that came with the notice. Sign and return it with the envelope provided. Note that if the notice says you owe more money and you send in the signed form, you accept liability. After doing so, a bill will be sent to you.

If you disagree…

If the changes are not correct, you will need to respond explaining the reasons why. You can respond to the letter with a written statement explaining why you disagree. You should also send any supporting documentation that you have to back up your case.

In the case of identity theft, you will need to fill out and submit Form 14039.

Note: If a third-party (employer, financial institution, etc.) has reported erroneous information about you, you should contact them and ask them to correct it and send you an updated statement.

You can also call the IRS at the number listed on the notice to discuss the issue and follow up on your response.

If the issue can’t be resolved with the IRS, you will need to file a petition with the U.S. Tax Court. However, be sure to file before the date listed on your notice or the court won’t be able to consider your case.

Read the definitive guide to IRS notices and letters here.

What if you don’t respond on time?

If you don’t respond by the deadline on the letter, the IRS will assess the proposed taxes and send you a bill. At that point, you will owe the amount.

What if you owe but you can’t pay?

Many people avoid IRS letters because they can’t pay. However, this can hurt you in the long run. Even if you can’t pay the amount you owe in full, or at all, you should communicate with the IRS. Programs are available to suit a variety of situations.

If you would like help determining which steps you should take, a tax relief firm may be your best bet. They offer a variety of services to help taxpayers get the best outcome from issues with the IRS. Being experts, they can help inform you of all of your options while the IRS can be biased when giving advice.

To review and compare industry-leading tax relief firms, check out the list below.