Understanding Your Letter 3219B

No. It shows how the information we received affects your tax. It also gives you contact information for filing a petition with the Tax Court.

If you want us to consider additional information, you must contact us immediately.

If you have a simple response, such as directing us to a specific line on your original return where you reported the income, you can call the toll-free number listed on the notice.

We may require a written response if the issue is more involved, especially if you disagree with some of the proposed changes. You may want to mail copies of payer information documents such as Forms 1099 or Schedules K-1. Include any other letters or documents that support your position. You should submit a written statement to explain any unusual tax situations.

If you choose to petition the U.S. Tax Court, you must submit the application in writing.

Tax years generally end on December 31, but we don't receive information from banks, businesses, and other payers until much later. Once we receive all the tax returns and payer information, we compare the information you reported with the information third party payers provided to us. It can take 8 months or more to complete this review.

No. The time you have to petition the U.S. Tax Court can't be extended. It’s important you respond to the Statutory Notice of Deficiency or petition the Tax Court (if you choose to) by the due date shown on the notice. If you don’t, we’ll assume the proposed changes are correct and assess the additional deficiency.

The law requires us to charge interest on any tax that isn't paid by the return due date (Internal Revenue Code Section 6601).

The law doesn't permit us to reduce or remove interest for reasonable cause. However, in limited circumstances, we may waive penalties. If you think you qualify for penalty removal, you should include related information in your response.

• Keep accurate information from banks and other payers to verify you received all payment information for filing your return. Review the documents to be sure they show your most current address. Report specific income types on the correct lines on Form 1120, U.S. Corporation Income Tax ReturnPDF, or Form 1041, U.S. Income Tax Return for Estates and TrustsPDF. For more information, see the reporting instructions for the form you’re required to file.
• If you report income on a line not traditionally reserved for that type of income, provide a statement indicating where you reported the income.
• Always attach a statement identifying the source of the amount reported on Form 1120, line 10, or Form 1041, line 8 (Other Income).
• Attach a statement explaining your percentage of gross proceeds that you would be liable to claim on your tax return.
• Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts applicable to each.