What this notice means
Information from your employer, bank or others didn't match your return, so the IRS is proposing to adjust your tax. The notice shows how it figured the amount and your choices whether you agree or not.
It isn't a bill or an audit. The amounts on the enclosed Form 5564 may differ from your earlier notice, because not every item can be challenged in U.S. Tax Court.
Why you got it
- The IRS proposed changes earlier, such as on a CP2000, and you didn't respond or you couldn't reach an agreement.
- Income that employers, banks or others reported doesn't match what you reported.
- Someone else used your name and Social Security number.
What to do now
- Read the notice carefully, including the enclosed Form 5564.
- If you agree, follow the notice's instructions and send back Form 5564.
- If you disagree, reply right away with a signed statement and any documents you want considered. Calling the number on your notice works too, since the IRS can generally take information over the phone.
- If a payer reported the wrong information, ask them for a corrected form or a statement, and let the IRS know you're waiting on it.
- If you want the U.S. Tax Court to decide, file a petition by the date on your notice. The court can't consider a late petition.
- If the notice is correct but you also have income, credits or expenses that weren't on your return, send Form 1040-X marked 'CP3219A' at the top, together with Form 5564.
If you don't respond
If you don't reply and don't petition the Tax Court, the IRS will assess the proposed tax and mail you a bill.
Questions people ask
Can I get more time?
No. You can still send information as soon as possible, and the IRS will work with you during the 90 days, but that doesn't extend your time to respond or to petition the Tax Court.
Do I have to go to Tax Court?
No. You may be able to settle things with the IRS. Return Form 5564 along with your records and a signed statement that says which items you dispute and your reasons.
Why did this take so long?
The IRS matches your return against information from employers, banks, businesses and others, and that matching takes several months.