Learning that you may owe additional money to the IRS because an earlier proposed tax assessment was wrong can be a stressful experience. Often, taxpayers learn about these discrepancies when they receive a CP3219A notice or Letter 531.
Have you received any such notice? Do you disagree with the IRS regarding its tax assessment? You have options in these circumstances. Our team at Highland Tax Group can discuss the matter, help you understand how to proceed, and offer representation from tax professionals who understand these types of cases.
Understanding the CP3219A Notice
The IRS sends a CP3219A notice when it receives information about a taxpayer’s income from a third party that conflicts with the information a taxpayer submitted to the IRS. Potential sources of such information include employers and financial institutions, such as banks.
This notice doesn’t mean the IRS is auditing you. However, it does mean the IRS is proposing changes to your taxes.
The notice will include information on how to respond to the proposed change. If you agree with the IRS, you can reply by submitting Form 5564, which will be included with the original notice.
You should still reply promptly if you disagree. The IRS gives you 90 days to potentially work out an arrangement. You also have the option of filing a petition with the U.S. Tax Court.
Understanding Letter 531
Similar to the above, the IRS may send Letter 531, indicating that a taxpayer still owes additional taxes or other amounts for the years specified on the letter. You have 90 days from receiving the letter to file a petition with U.S. Tax Court if you disagree with the IRS on this matter.
Highland Tax Group Can Help You Respond to Letter 531 or the CP3219A Notice
You may know you disagree with the IRS if you receive a notice indicating the IRS got an earlier tax assessment wrong. What you might not know is how to prove the IRS made a mistake.
You don’t have to face this process alone. If you’ve received any of the above notices or letters, we at Highland Tax Group can help you reply to the IRS or file a petition. Our tax professionals will help you present and build a case showing why you disagree with the agency’s findings.