Wednesday, June 19, 2024

Notice of Deficiency

The IRS gets your tax reports from various financial organizations and employers. After that, they crosscheck your information for tax deficiencies. However, tax deficiency is when the amount of taxes your report on your return differs from what the IRS calculates you owe. In case you file a tax return different from the income your employers reported, it is called a tax deficiency. When you declare tax deficiency, you will receive a notice of deficiency from the IRS. In addition, most taxpayers panic after getting notice, especially when they have inconsistent tax returns. It can cause anxiety to the taxpayer. This short guide will give you complete information about the IRS notice of deficiency. If you are looking for immediate help, you may want to seek the services of an experienced tax debt relief company.

What is a Notice of Deficiency?

The IRS sends a deficiency notice to you after accessing documents and tax reports. However, a notice of deficiency is also known as a 90 days letter or a ticket to the US tax court. It is an official return claim or legal determination by the IRS for those owing additional income taxes. Therefore, you don’t want to panic. Instead, this notice outlines your tax information received by the IRS and proposes new changes. The reason why people called it 90 days letter is because it needs a response. In addition, it also allows dispute assessment within 90 days in a tax court. You must file a petition within 90 days starting from the date of a letter without extension. 

How Does a Notice of Deficiency Work?

A notice from IRs for deficiency informs you that the IRS knows you owe traditional income tax. It happens when information on a tax return differs from the information the IRS has in its records. Before you get a formal notice of deficiency, the IRS needs to determine the need for the notice and notify you. However, the IRS will start the process in the following situations. The IRS finds that you owe more tax than you reported on their tax return. If you are not filing a tax return, the IRS determines that you have a tax liability. If any of the above factors are true, the Internal Revenue Service (IRS) will send you letters and notices. Generally, these initial communications instruct you to file the missing tax return. In addition, it also requests you to provide documentation to the IRS that supports positions taken on your tax return. Moreover, it also informs you that your return has been chosen for an audit. 

Types of Notices of Deficiency

You will get various notices of deficiency from IRs depending on your situation, which is as follows:

Notice 3219:

The IRS sent this notice of deficiency to you if they conducted a correspondence audit with you. It is a request for additional information about a particular issue or item on your tax return that didn’t result in an agreement with the taxpayer.

Letter CP3219A:

You will receive this letter as a notice of deficiency from the IRS if they find that you underreported your tax liabilities on your tax return. Depending on the information IRS received on tax documents prepared by third parties.

Notice CP3219B:

IRS sends this notice of deficiency to business taxpayers whom it finds underreported their tax liabilities on their tax returns.

Letter CP3219:

If the IRS believes your withholding or refundable credits amount reported on your tax return may be inaccurate or falsified, they send notice 4800C to you. If you don’t respond adequately or respond adequately, you will receive this type of notice of deficiency.


When you are sure that the notice from IRS was sent to you by mistake, there are some things you can do to resolve the issue. Get a written statement that fully explains why you want to appeal. When in doubt, consult with a tax debt relief company. They help you defend yourself from the IRS. In addition, they also determine the validity of your reason for the appeal and help save you processing time.

Claire James
Claire James
Claire is an accounts manager at Fire Digital UK, an online publishing and content marketing company based in the North West.

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