What Is a “Notice of Deficiency” from the Internal Revenue Service (IRS)? 

Every so often, the IRS will send a very serious letter called a Statutory Notice of Deficiency (sometimes “90-Day Letter”)—for example, labelled as Letter 3219 A or CP 3219N. (IRS) 

What it means 

• The IRS has reviewed your tax return (or lack thereof) and has made a legal determination that you owe additional tax beyond what you reported. (Community Tax) 

• It’s not just a friendly request—it triggers your right to challenge the IRS’s assessment. You typically have only 90 days (or 150 days if you’re outside the U.S.) to act. (IRS) 

• Until this notice is resolved (either by your action or by letting the time expire), the IRS is in a special legal posture—they can assess tax based on this determination. (IRS) 

Why you might receive one

• The information reported on your return didn’t match third-party data (W-2s, 1099s, etc.). (Tim Hart) 

• You failed to file a tax return for a year and the IRS used available income data to propose tax. (IRS) 

• You filed an audit and the results show a larger liability than originally reported. (Taxpayer Advocate Service) 

What you must do?

1. Read the notice carefully — note the tax year, the amount proposed, and the deadline to respond. 

2. Compare it to your own records (return copy, income statements, deductions). 

3. Decide your next step: 

• If you agree with the proposed amount: Complete the waiver form (often Form 5564) and pay or set up a plan. (Tim Hart) 

• If you disagree: You must act within 90 days to file a petition with the United States Tax Court if you want the chance to dispute without first paying. (Taxpayer Advocate Service) 

4. If you are unsure what to do or the numbers don’t add up — get professional help immediately. 

Why this matters?

This notice carries serious consequences: 

• Missing the 90-day window means losing the right to go to Tax Court on those proposed changes. 

• If you ignore it, your tax liability can be formally assessed and the IRS collection tools become available. 

• The deficiency could include interest and penalties in addition to the tax. 

What KARME Can Do for You? 

At KARME Financial & Business Services, we specialize in handling Statutory Notices of Deficiency and other high-stakes IRS correspondence. We will: 

• Translate the IRS’s legalese into plain English. 

• Review your records to determine if the IRS is correct or if you have grounds to dispute. 

• Help you decide whether to accept the notice, negotiate payment options, or challenge it in Tax Court. 

• Represent you with the IRS and keep you informed while protecting your rights.