IRS CP3219A: statutory notice of deficiency

CP3219A usually follows an unresolved CP2000. The IRS's Automated Underreporter program found differences between your return and information returns like W-2s, 1099s or brokerage statements, and is now formally proposing the tax. It includes Form 5564, Notice of Deficiency — Waiver, which you sign only if you agree. The IRS notes the amount on Form 5564 may differ from the earlier notice because not every item can be challenged in Tax Court.

This is the last step in the IRS's document-matching process: it usually follows a CP2000 proposed adjustment that wasn't resolved. It's not a bill yet. If you don't petition the Tax Court in time, the tax is assessed and you'll then start receiving balance-due notices beginning with CP14.

Scam letters copy IRS formatting, so confirm a CP3219A before acting on it. Log in to your IRS Online Account — most notices, balances and payment history appear there — or request an account transcript. A genuine notice shows a notice or letter number (usually in the top or bottom right corner), the tax year, and explains your rights. If you call, use a number you find on IRS.gov, not a number printed only on a letter you're unsure about. The IRS doesn't demand payment by gift card, prepaid debit card, cryptocurrency or wire to an individual, and it doesn't threaten immediate arrest.

Your hard deadline is the "last day to petition the Tax Court" printed on the notice — 90 days from the date of the notice (150 days if addressed to you outside the U.S.).

To dispute the proposed tax in court without paying first, you must file a petition with the U.S. Tax Court within 90 days of the notice date (150 days if the notice is addressed to you outside the U.S.). The deadline is printed on the notice and the court can't extend it. You can still send the IRS documents during that time, but contacting the IRS does not extend the court deadline.

If you don't sign the waiver or petition the court, the IRS assesses the tax at the end of the 90 days and sends a bill, starting the normal collection notices. You can still pay and seek a refund, or request audit reconsideration, but you lose the right to go to Tax Court first.

If you owe and can't pay in full, you have options:

• Pay in full online through IRS Direct Pay or your Online Account to stop further interest and penalties.
• Short-term plan of up to 180 days, with no setup fee.
• **Installment agreement** — individuals who owe $50,000 or less in combined tax, penalties and interest can usually apply online. Larger balances generally need a financial statement (Form 433-F or 433-A).
• **Currently Not Collectible** status if paying would prevent you from covering basic living expenses.
• **Offer in Compromise** only if you can't realistically pay the full amount before the collection statute expires — most applicants don't qualify.
• **Penalty relief**, including first-time abatement, which can remove failure-to-file and failure-to-pay penalties.

Interest (currently 7% a year, set quarterly) continues on any unpaid balance.

You don't need to pay anyone to respond to a CP3219A. The Taxpayer Advocate Service, an independent organization inside the IRS, helps people whose problems aren't being resolved through normal channels or who face significant hardship. Low Income Taxpayer Clinics offer free or low-cost representation to eligible taxpayers, including in disputes with the IRS. Volunteer programs such as VITA can help prepare missing returns. If you do hire paid help, choose a credentialed professional — a CPA, enrolled agent or attorney — who can represent you before the IRS with Form 2848, and be wary of anyone who guarantees an outcome, demands large upfront fees, or tells you to stop communicating with the IRS. See red flags to watch for.

1. Read the whole notice and note the date, tax year and any deadline.
2. Verify it in your IRS Online Account or with a transcript.
3. Gather records — the return, payment proof and any documents the notice mentions.
4. Decide: agree and pay/verify, dispute with documentation, or request the hearing or appeal the notice describes.
5. Respond in writing or by the method shown, before the deadline, and keep copies and proof of mailing.
6. Get help if needed. You can authorize a CPA, enrolled agent or attorney with Form 2848, and the Taxpayer Advocate Service or a Low Income Taxpayer Clinic may help for free.

Want to see which relief options fit your situation? The free calculator on this page takes about a minute. It's an educational estimate, not a guarantee.