Frightening Letter In The Mail: “Notice CP3219” Here’s How To Deal With It.

When the IRS has determined that you owe taxes, a Notice CP3219, also known as the “90-day letter” or Statutory Notice of Deficiency, is sent. This notice was sent advising you that you may owe back taxes resulting from the removal of certain credits or deductions that you do not qualify for, or possibly the exclusion of certain income.

The IRS receives information from third parties (W-2s, 1099s) regarding your tax liabilities. If the information on your return (specifically income, credits and deductions) does not match the information received from third parties, the IRS may send a notice or carry out an audit.  If you have received such a notice from the IRS and need assistance responding, please contact RMS Tax Consulting at (520) 448-3531 and speak with Enrolled Agent Richard Schickel to receive a free consultation.

If You Agree with the IRS Assessment

When you receive the Statutory Notice of Deficiency, you need to read it carefully comparing the details of the Notice with those found in your own tax records. If you agree with the IRS assessment, you will need to sign the enclosed Form 5564, Notice of Deficiency – Waiver and mail it to the IRS at the address indicated on the Notice with your remittance of the entire taxes owed, including penalties and interest.

If You Do Not Agree with the IRS Assessment

If you disagree with the IRS assessment, you have 90 days from the date of the Notice to file a petition in the U.S. tax court. You may also send information that explains and substantiates your disagreement. The IRS will review your information and will allow you to file a petition with the tax court.

When a petition is filed in the tax court and a decision is pending, the IRS assessment is not considered final.  Penalties and interest will not accrue on the taxes owed. Generally, after you file a petition with the tax court, the court refers the case to the IRS Office of Appeals. The Office of Appeals is an independent organization within the IRS, which resolves disputes between taxpayers and the IRS in a fair and impartial manner. The majority of the cases that come to the tax court are referred to the Office of Appeals for resolution.

If you have not paid the balance due or filed a petition, the IRS assessment becomes final after the 90-day period ends.  After this time period has expired, the IRS may begin collection action. An attorney, CPA, or enrolled agent can represent you during an appeal. To resolve tax disputes in the Office of Appeals or the tax court, it is advisable to seek representation from a tax professional.  Contact RMS Tax Consulting at (520) 448-3531 and speak with Enrolled Agent Richard Schickel for assistance in filing an appeal to resolve your tax dispute.

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