IRS Letter 3219, also called a Notice of Deficiency, is a pivotal document sent by the Internal Revenue Service (IRS) to taxpayers after an audit or tax return examination. It informs you that the IRS has determined you owe more tax, interest, or penalties than you reported. Unlike other IRS notices, Letter 3219 gives you the exclusive legal right to file a petition in U.S. Tax Court within 90 days (or 150 days if abroad) from the date on the letter, enabling you to dispute the proposed tax deficiency before paying any amount.

Why Letter 3219 Matters

Letter 3219 is often referred to as the taxpayer’s “ticket” to Tax Court because it is typically required before you can challenge the IRS’s findings legally without first paying the disputed tax. Absent this notice, you usually cannot bring your case to Tax Court. It signals the end of the IRS’s internal administrative process and opens the door for judicial review if you disagree.

How Letter 3219 Works

When you receive this notice, it includes:

  • The amount of the proposed tax deficiency the IRS claims you owe.
  • Detailed explanations for the adjustments, such as omitted income, disallowed deductions, or credits.
  • The strict 90-day deadline to file a Tax Court petition (150 days for taxpayers outside the U.S.).

Failing to file within this period results in the IRS assessing the deficiency formally and initiating collection efforts.

Your Options After Receiving Letter 3219

  1. Ignore the Letter (Not Recommended): If you do nothing, the IRS will assess the deficiency and begin collection. Your chance to dispute in Tax Court without prepaying the tax expires.

  2. Agree to the Deficiency: Sign and return the agreement form (Form 5564) if you accept the IRS’s findings. This stops further dispute but requires payment.

  3. File a Petition in U.S. Tax Court: If you disagree, file a petition within the 90-day deadline. This pauses IRS collection on the disputed amount while your case is reviewed, possibly leading to negotiation, settlement, or trial.

  4. Pay First, Then Sue for Refund (Less Common): Paying the tax and later filing for a refund is an alternative route, but it requires paying upfront and suing in district court, missing the Tax Court’s prepayment dispute advantage.

Who Receives Letter 3219?

Letter 3219 is sent to individuals or businesses after an IRS audit or when disputes from prior IRS notices are unresolved. It’s specifically given when the IRS believes you owe additional taxes and you’re not in agreement.

Tips for Handling Letter 3219

  • Act fast: Mark your calendar for the strict 90-day deadline.
  • Review carefully: Check the IRS’s rationale and gather your supporting documents.
  • Seek expert help: Tax attorneys or Enrolled Agents can help prepare petitions and negotiate.
  • Don’t ignore it: Letting the deadline pass limits your rights and increases financial risk.

Common Mistakes to Avoid

  • Missing the 90-day deadline, which forfeits your Tax Court rights.
  • Filing an incomplete or incorrect petition, risking dismissal.
  • Sending petitions to the IRS instead of the U.S. Tax Court.
  • Assuming the IRS is automatically right or wrong without review.
  • Trying to handle the process without professional guidance.

Frequently Asked Questions

What if I don’t respond? The IRS will assess the tax, add penalties and interest, and begin collection.

Can I still negotiate after filing a petition? Sometimes, yes; the IRS Appeals Office may discuss settlement even after tax court involvement.

Do I need a lawyer? While you can represent yourself, professional representation improves the chances of a successful challenge in Tax Court.

How is Letter 3219 different from other IRS notices? It uniquely allows prepayment dispute in Tax Court, unlike other notices that may just request information or minor adjustments.

Additional Resources

For more details on how to file a petition, see our guide on Taking Your Case to U.S. Tax Court. Learn about related IRS notices like the CP2000 Notice and understand your rights with our article on Understanding Your IRS Notice.

Authoritative Sources

  • Internal Revenue Service, “Understanding Your IRS Notice or Letter.” IRS.gov (Accessed June 2025)
  • Internal Revenue Service, “IRS Appeals – An Overview.” IRS.gov (Accessed June 2025)
  • Investopedia, “Tax Deficiency.” Investopedia.com (Accessed June 2025)