What the letter is
The Notice of Deficiency (Letter 3219 or CP3219A) is the IRS's formal determination that you owe additional tax, issued after you didn't resolve a CP2000, an audit, or another adjustment. The last date to file a Tax Court petition is printed on the first page. Assessment is legally barred until that date passes or the case resolves, which is why this letter, not the earlier ones, is the true fork in the road.
Your three options
Pay the tax (closes the case, you can later file a claim for refund). File a Tax Court petition within 90 days (keeps the case alive, no payment required). Let it go (tax becomes final and collection starts).
Tax Court petition
Filing Form 2 (Petition) in U.S. Tax Court is the standard path for disputed amounts. It's the only court where you can litigate without paying the tax first. Cases under $50,000 qualify for small-case procedure, which is faster and less formal.
What actually happens after filing
Petitioned cases don't usually see a courtroom. The case goes first to IRS Appeals or counsel for settlement discussion, and the majority resolve there, often for meaningfully less than the notice amount when documentation supports it. The petition preserves your leverage; the settlement process uses it.
If you missed the 90 days
The tax gets assessed and collection begins, but remedies remain. You can pay and file a refund claim, request audit reconsideration with documentation the IRS never saw, or raise doubt-as-to-liability in an Offer in Compromise. Each is slower and weaker than a timely petition, which is why the printed deadline deserves a calendar entry the day the letter arrives.
Common questions
- Do I need a lawyer for Tax Court?
- Enrolled Agents can represent in Tax Court after passing the Tax Court exam. Otherwise, many taxpayers represent themselves in small-case procedure.
- Can the 90-day deadline be extended?
- No. It's set by statute and neither the IRS nor the court can extend it. A petition postmarked by the last date printed on the notice is timely; one day later is not.
- Does petitioning stop collection?
- Yes. The IRS cannot assess or collect the disputed tax while the Tax Court case is pending.
- Should I respond to the IRS or just petition?
- You can do both: continue working with the IRS to resolve the issue, but never let negotiations run past the petition deadline. Filing protects your rights; talking settles the case.
Related
IRS Audit Representation
Herman Viglione, EA, represents taxpayers in IRS and state audits. Correspondence, office, and field audits handled remotely for clients in any state.
Tax Relief & Back Taxes
Back tax filings, installment agreements, penalty abatement, and offer-in-compromise support for taxpayers behind with the IRS. We file first, then negotiate.
Responding to an IRS CP2000 Notice
A CP2000 is an automated IRS underreporter inquiry: third-party income doesn't match your return. You have 30 days to respond. How to agree or dispute.
Related tax topics
Responding to an IRS Letter 525
Letter 525 is the 30-day letter after an audit. A written protest within 30 days preserves your right to IRS Appeals, where most audit disputes settle.
IRS Audit Reconsideration
Audit reconsideration reopens a default audit assessment when you have new documentation or never received the original notice. What Form 12661 requires.
Offer in Compromise
An Offer in Compromise settles IRS debt for less than the full amount. Eligibility is narrow and documentation is heavy. KG Tax prepares and submits Form 656.
IRS Installment Agreement
Monthly payment plans are the most common IRS collection resolution. Streamlined agreements up to $50,000 skip financial disclosure. KG Tax files Form 9465.