Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Tax Preparation Software

Irs Gov Freefile State TaxesFile 2012 Tax Return Online FreeTaxact Com 2012What Is An Amended Tax ReturnAmended ReturnsH&r Block TaxesState Income Tax Form 2012Tax Amendment Form 2013Irs Form 1040IrsNy State Tax Forms 2011Free Irs Form 1040ez1040 E FileForm 1040 20101040ezTurbotax Deluxe 2010Turbotax For Students FreeTaxes For FreeCan I Still File My 2011 Tax ReturnTurbotax 2008 Free Edition2012 1040 Ez Tax Form1040 Ez IrsTax Act 2011 FreeFree State Tax FilingFile State Income Tax2010 Form 1040 Ez1040 Ez OnlineState Tax Return FormsAmend Colorado Tax ReturnDo I Need To File Taxes If I Was UnemployedFederal Tax 1040ezForm 1040 V Payment VoucherIrs 2010 Tax FormsTax Forms Online1040x Amended Tax FormEz 1040 FormHow To Fill Out 1040x Line By LineH R Block 2011 ReturnFiling Form 1040xNavy Federal

Tax Preparation Software

Tax preparation software Index A Assistance (see Tax help) F Free tax services, How To Get Tax Help H Help (see Tax help) M More information (see Tax help) P Publications (see Tax help) T Tax help, How To Get Tax Help Taxpayer Advocate, Taxpayer Advocate Service. Tax preparation software TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications
Print - Click this link to Print this page

Understanding Your CP3219B Notice

This Statutory Notice of Deficiency notifies you of the IRS’s intent to assess a tax deficiency and informs you of your right to petition the United States Tax Court to dispute the proposed adjustments.


What you need to do immediately

  • Review this notice and compare our changes to the information on your tax return. On previous notices we asked you to verify the income, credits, and deductions reported on your tax return because they’re different from the information we received from other sources. You didn't provide any further information to us.
  • If you agree with the changes, complete the Form 4089, Notice of Deficiency - Waiver, sign and return it in order to limit additional interest charges.
  • If you don't send a payment with Form 4089, we will send a bill for the amount due with any interest and applicable penalties.
  • Mail any additional information you have to us immediately. Attach this letter to your correspondence to help us identify your case. Keep a copy for your records. Our consideration won't extend the deadline to file a petition with the U.S Tax Court.
  • If you don’t agree with the changes you have the right to challenge the increase in tax by filing a petition with the U.S. Tax Court. You have 90 days (150 if the notice was addressed outside the United States) to file the petition. The Court can’t consider your case if the petition is filed late. You can download a petition form and rules from www.ustaxcourt.gov or contact:

  • Clerk of the U.S. Tax Court
    400 Second Street, NW
    Washington, DC 20217
    1-202-521-0700

You may want to

  • Send us the name, address and taxpayer identification number of the other party that received the income if it isn't yours.
  • Notify the payers to correct their records to show the name and taxpayer identification number of the person or business who actually received the income, so that future reports to us are accurate.

Answers to Common Questions

Is this a Bill?
No. It tells you of the IRS’s intention to assess a tax deficiency. It isn't an assessment of tax nor does it require you to make immediate payment. We haven’t charged any additional tax at this time.

Should I call with my response or mail it in?
If you want us to consider additional information, please contact us immediately. Our consideration won't extend the deadline to file a petition with the U.S Tax Court.


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 a Customer Service Representative and provide the information. A toll-free number is listed in the top right hand corner of the notice.


A written response may be required 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 Form(s) 1099 or Schedule(s) K-1. Include any other letters or documents that support your position. You should submit a written statement to fully explain any unusual tax situations.


If you choose to petition the United States Tax Court, the application must be submitted in writing.

Why did it take you so long to contact us about this?
Tax years generally end on Dec. 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.

I need more time to find my records and go through them all. Will you allow me additional time to respond?
No. The time you have to petition the United States Tax Court can't be extended. It’s important that you respond to the Statutory Notice of Deficiency or petition the United States 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.

Do I have to pay the interest? Can you remove it?
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 believe you qualify for penalty removal, you should include related information in your response.

What should I do to avoid problems like this in the future?
Keep accurate payment information from banks and other payers to verify you've received all payment information for filing your return. Review the documents to be sure they show your most current address. Take the following actions when filing your tax return to avoid similar issues in the future:

  • Report specific income type on the correct line on the Form 1120, U.S. Corporation Income Tax Return. For example, rental income should be claimed on Form 1120, line 6 (Gross Rents). For additional information, please see the reporting instructions for Form 1120.
  • If you report income on a line not traditionally reserved for that type of income, provide a statement indicating where the income was reported. For example, your business is related to investment activity and you're reporting all interest income (including amounts reported to the IRS on Form 1099-INT, Interest Income) with your gross receipts on Form 1120, line 1.
  • Always attach a statement identifying the source of the amount reported on Form 1120, line 10 (Other Income).
  • Provide an attached statement explaining your percentage of gross proceeds (ex; reported to us on Form 1099-MISC) 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 considered 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.
Page Last Reviewed or Updated: 28-Feb-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Tax Preparation Software

Tax preparation software 8. Tax preparation software   Distributions and Rollovers Table of Contents DistributionsMinimum Required Distributions No Special 10-Year Tax Option Transfer of Interest in 403(b) ContractAfter-tax contributions. Tax preparation software Permissive service credit. Tax preparation software Tax-Free RolloversHardship exception to rollover rules. Tax preparation software Eligible retirement plans. Tax preparation software Nonqualifying distributions. Tax preparation software Second rollover. Tax preparation software Gift Tax Distributions Permissible distributions. Tax preparation software   Generally, a distribution cannot be made from a 403(b) account until the employee: Reaches age 59½, Has a severance from employment, Dies, Becomes disabled, In the case of elective deferrals, encounters financial hardship, or Has a qualified reservist distribution. Tax preparation software In most cases, the payments you receive or that are made available to you under your 403(b) account are taxable in full as ordinary income. Tax preparation software In general, the same tax rules apply to distributions from 403(b) plans that apply to distributions from other retirement plans. Tax preparation software These rules are explained in Publication 575. Tax preparation software Publication 575 also discusses the additional tax on early distributions from retirement plans. Tax preparation software Retired public safety officers. Tax preparation software   If you are an eligible retired public safety officer, distributions of up to $3,000, made directly from your 403(b) plan to pay accident, health, or long-term care insurance, are not included in your taxable income. Tax preparation software The premiums can be for you, your spouse, or your dependents. Tax preparation software   A public safety officer is a law enforcement officer, fire fighter, chaplain, or member of a rescue squad or ambulance crew. Tax preparation software   For additional information, see Publication 575. Tax preparation software Distribution for active reservist. Tax preparation software   The 10% penalty for early withdrawals will not apply to a qualified reservist distribution attributable to elective deferrals from a 403(b) plan. Tax preparation software A qualified reservist distribution is a distribution that is made: To an individual who is a reservist or national guardsman and who was ordered or called to active duty for a period in excess of 179 days or for an indefinite period; and During the period beginning on the date of the order or call to duty and ending at the close of the active duty period. Tax preparation software Minimum Required Distributions You must receive all, or at least a certain minimum, of your interest accruing after 1986 in the 403(b) plan by April 1 of the calendar year following the later of the calendar year in which you become age 70½, or the calendar year in which you retire. Tax preparation software Check with your employer, plan administrator, or provider to find out whether this rule also applies to pre-1987 accruals. Tax preparation software If not, a minimum amount of these accruals must begin to be distributed by the later of the end of the calendar year in which you reach age 75 or April 1 of the calendar year following retirement. Tax preparation software For each year thereafter, the minimum distribution must be made by the last day of the year. Tax preparation software If you do not receive the required minimum distribution, you are subject to a nondeductible 50% excise tax on the difference between the required minimum distribution and the amount actually distributed. Tax preparation software No Special 10-Year Tax Option A distribution from a 403(b) plan does not qualify as a lump-sum distribution. Tax preparation software This means you cannot use the special 10-year tax option to calculate the taxable portion of a 403(b) distribution. Tax preparation software For more information, see Publication 575. Tax preparation software Transfer of Interest in 403(b) Contract Contract exchanges. Tax preparation software   If you transfer all or part of your interest from a 403(b) contract to another 403(b) contract (held in the same plan), the transfer is tax free, and is referred to as a contract exchange. Tax preparation software This was previously known as a 90-24 transfer. Tax preparation software A contract exchange is similar to a 90-24 transfer with one major difference. Tax preparation software Previously, you were able to accomplish the transfer without your employer’s involvement. Tax preparation software After September 24, 2007, all such transfers are accomplished through a contract exchange requiring your employer’s involvement. Tax preparation software In addition, the plan must provide for the exchange and the transferred interest must be subject to the same or stricter distribution restrictions. Tax preparation software Finally, your accumulated benefit after the exchange must be equal to what it was before the exchange. Tax preparation software   Transfers that do not satisfy this rule are plan distributions and are generally taxable as ordinary income. Tax preparation software Plan-to-plan transfers. Tax preparation software   You may also transfer part or all of your interest from a 403(b) plan to another 403(b) plan if you are an employee of (or were formerly employed by) the employer of the plan to which you would like to transfer. Tax preparation software Both the initial plan and the receiving plan must provide for transfers. Tax preparation software Your accumulated benefit after the transfer must be at least equal to what it was before the transfer. Tax preparation software The new plan’s restrictions on distributions must be the same or stricter than those of the original plan. Tax preparation software Tax-free transfers for certain cash distributions. Tax preparation software   A tax-free transfer may also apply to a cash distribution of your 403(b) account from an insurance company that is subject to a rehabilitation, conservatorship, insolvency, or similar state proceeding. Tax preparation software To receive tax-free treatment, you must do all of the following: Withdraw all the cash to which you are entitled in full settlement of your contract rights or, if less, the maximum permitted by the state. Tax preparation software Reinvest the cash distribution in a single policy or contract issued by another insurance company or in a single custodial account subject to the same or stricter distribution restrictions as the original contract not later than 60 days after you receive the cash distribution. Tax preparation software Assign all future distribution rights to the new contract or account for investment in that contract or account if you received an amount that is less than what you are entitled to because of state restrictions. Tax preparation software   In addition to the preceding requirements, you must provide the new insurer with a written statement containing all of the following information: The gross amount of cash distributed under the old contract. Tax preparation software The amount of cash reinvested in the new contract. Tax preparation software Your investment in the old contract on the date you receive your first cash distribution. Tax preparation software   Also, you must attach the following items to your timely filed income tax return in the year you receive the first distribution of cash. Tax preparation software A copy of the statement you gave the new insurer. Tax preparation software A statement that includes: The words ELECTION UNDER REV. Tax preparation software PROC. Tax preparation software 92-44, The name of the company that issued the new contract, and The new policy number. Tax preparation software Direct trustee-to-trustee transfer. Tax preparation software   If you make a direct trustee-to-trustee transfer, from your governmental 403(b) account to a defined benefit governmental plan, it may not be includible in gross income. Tax preparation software   The transfer amount is not includible in gross income if it is made to: Purchase permissive service credits, or Repay contributions and earnings that were previously refunded under a forfeiture of service credit under the plan, or under another plan maintained by a state or local government employer within the same state. Tax preparation software After-tax contributions. Tax preparation software   For distributions beginning after December 31, 2006, after-tax contributions can be rolled over between a 403(b) plan and a defined benefit plan, IRA, or a defined contribution plan. Tax preparation software If the rollover is to or from a 403(b) plan, it must occur through a direct trustee-to-trustee transfer. Tax preparation software Permissive service credit. Tax preparation software   A permissive service credit is credit for a period of service recognized by a defined benefit governmental plan only if you voluntarily contribute to the plan an amount that does not exceed the amount necessary to fund the benefit attributable to the period of service and the amount contributed is in addition to the regular employee contribution, if any, under the plan. Tax preparation software   A permissive service credit may also include service credit for up to 5 years where there is no performance of service, or service credited to provide an increased benefit for service credit which a participant is receiving under the plan. Tax preparation software   Check with your plan administrator as to the type and extent of service that may be purchased by this transfer. Tax preparation software Tax-Free Rollovers You can generally roll over tax free all or any part of a distribution from a 403(b) plan to a traditional IRA or a non-Roth eligible retirement plan, except for any nonqualifying distributions, described later. Tax preparation software You may also roll over any part of a distribution from a 403(b) plan by converting it through a direct rollover, described below, to a Roth IRA. Tax preparation software Conversion amounts are generally includible in your taxable income in the year of the distribution from your 403(b) account. Tax preparation software See Publication 590 for more information about conversion into a Roth IRA. Tax preparation software Note. Tax preparation software A participant is required to roll over distribution amounts received within 60 days in order for the amount to be treated as nontaxable. Tax preparation software Distribution amounts that are rolled over within the 60 days are not subject to the 10% early distribution penalty. Tax preparation software Rollovers to and from 403(b) plans. Tax preparation software   You can generally roll over tax free all or any part of a distribution from an eligible retirement plan to a 403(b) plan. Tax preparation software Beginning January 1, 2008, distributions from tax-qualified retirement plans and tax-sheltered annuities can be converted by making a direct rollover into a Roth IRA subject to the restrictions that currently apply to rollovers from a traditional IRA into a Roth IRA. Tax preparation software Converted amounts are generally includible in your taxable income in the year of the distribution from your 403(b) account. Tax preparation software See Publication 590 for more information on conversion into a Roth IRA. Tax preparation software   If a distribution includes both pre-tax contributions and after-tax contributions, the portion of the distribution that is rolled over is treated as consisting first of pre-tax amounts (contributions and earnings that would be includible in income if no rollover occurred). Tax preparation software This means that if you roll over an amount that is at least as much as the pre-tax portion of the distribution, you do not have to include any of the distribution in income. Tax preparation software   For more information on rollovers and eligible retirement plans, see Publication 575. Tax preparation software If you roll over money or other property from a 403(b) plan to an eligible retirement plan, see Publication 575 for information about possible effects on later distributions from the eligible retirement plan. Tax preparation software Hardship exception to rollover rules. Tax preparation software   The IRS may waive the 60-day rollover period if the failure to waive such requirement would be against equity or good conscience, including cases of casualty, disaster, or other events beyond the reasonable control of an individual. Tax preparation software   To obtain a hardship exception, you must apply to the IRS for a waiver of the 60-day rollover requirement. Tax preparation software You apply for the waiver by following the general instructions used in requesting a letter ruling. Tax preparation software These instructions are stated in Revenue Procedure 2013-4, 2013-1 I. Tax preparation software R. Tax preparation software B. Tax preparation software 126 available at www. Tax preparation software irs. Tax preparation software gov/irb/2013-01_IRB/ar09. Tax preparation software html, or see the latest annual update. Tax preparation software You must also pay a user fee with the application. Tax preparation software The user fee for a rollover that is less than $50,000 is $500. Tax preparation software For rollovers that are $50,000 or more, see Revenue Procedure 2013-8, 2013-1 I. Tax preparation software R. Tax preparation software B. Tax preparation software 237 available at www. Tax preparation software irs. Tax preparation software gov/irb/2013-01_IRB/ar13. Tax preparation software html, or see the latest annual update. Tax preparation software   In determining whether to grant a waiver, the IRS will consider all relevant facts and circumstances, including: Whether errors were made by the financial institution; Whether you were unable to complete the rollover due to death, disability, hospitalization, incarceration, restrictions imposed by a foreign country, or postal error; Whether you used the amount distributed (for example, in the case of payment by check, whether you cashed the check); and How much time has passed since the date of distribution. Tax preparation software   For additional information on rollovers, see Publication 590. Tax preparation software Eligible retirement plans. Tax preparation software   The following are considered eligible retirement plans. Tax preparation software Individual retirement arrangements. Tax preparation software Roth IRA. Tax preparation software 403(b) plans. Tax preparation software Government eligible 457 plans. Tax preparation software Qualified retirement plans. Tax preparation software  If the distribution is from a designated Roth account, then the only eligible retirement plan is another designated Roth account or a Roth IRA. Tax preparation software Nonqualifying distributions. Tax preparation software   You cannot roll over tax free: Minimum required distributions (generally required to begin at age 70½), Substantially equal payments over your life or life expectancy, Substantially equal payments over the joint lives or life expectancies of your beneficiary and you, Substantially equal payments for a period of 10 years or more, Hardship distributions, or Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or excess annual additions and any allocable gains. Tax preparation software Rollover of nontaxable amounts. Tax preparation software    You may be able to roll over the nontaxable part of a distribution (such as your after-tax contributions) made to another eligible retirement plan, traditional IRA, or Roth IRA. Tax preparation software The transfer must be made either through a direct rollover to an eligible plan that separately accounts for the taxable and nontaxable parts of the rollover or through a rollover to a traditional IRA or Roth IRA. Tax preparation software   If you roll over only part of a distribution that includes both taxable and nontaxable amounts, the amount you roll over is treated as coming first from the taxable part of the distribution. Tax preparation software Direct rollovers of 403(b) plan distributions. Tax preparation software   You have the option of having your 403(b) plan make the rollover directly to a traditional IRA, Roth IRA, or new plan. Tax preparation software Before you receive a distribution, your plan will give you information on this. Tax preparation software It is generally to your advantage to choose this option because your plan will not withhold tax on the distribution if you choose it. Tax preparation software Distribution received by you. Tax preparation software   If you receive a distribution that qualifies to be rolled over, you can roll over all or any part of the distribution. Tax preparation software Generally, you will receive only 80% of the distribution because 20% must be withheld. Tax preparation software If you roll over only the 80% you receive, you must pay tax on the 20% you did not roll over. Tax preparation software You can replace the 20% that was withheld with other money within the 60-day period to make a 100% rollover. Tax preparation software Voluntary deductible contributions. Tax preparation software   For tax years 1982 through 1986, employees could make deductible contributions to a 403(b) plan under the individual retirement arrangement (IRA) rules instead of deducting contributions to a traditional IRA. Tax preparation software   If you made voluntary deductible contributions to a 403(b) plan under these traditional IRA rules, the distribution of all or part of the accumulated deductible contributions may be rolled over if it otherwise qualifies as a distribution you can roll over. Tax preparation software Accumulated deductible contributions are the deductible contributions: Plus Income allocable to the contributions, Gain allocable to the contributions, and Minus Expenses and losses allocable to the contributions, and Distributions from the contributions, income, or gain. Tax preparation software Excess employer contributions. Tax preparation software   The portion of a distribution from a 403(b) plan transferred to a traditional IRA that was previously included in income as excess employer contributions (discussed earlier) is not an eligible rollover distribution. Tax preparation software   Its transfer does not affect the rollover treatment of the eligible portion of the transferred amounts. Tax preparation software However, the ineligible portion is subject to the traditional IRA contribution limits and may create an excess IRA contribution subject to a 6% excise tax (see chapter 1 of Publication 590). Tax preparation software Qualified domestic relations order. Tax preparation software   You may be able to roll over tax free all or any part of an eligible rollover distribution from a 403(b) plan that you receive under a qualified domestic relations order (QDRO). Tax preparation software If you receive the interest in the 403(b) plan as an employee's spouse or former spouse under a QDRO, all of the rollover rules apply to you as if you were the employee. Tax preparation software You can roll over your interest in the plan to a traditional IRA or another 403(b) plan. Tax preparation software For more information on the treatment of an interest received under a QDRO, see Publication 575. Tax preparation software Spouses of deceased employees. Tax preparation software   If you are the spouse of a deceased employee, you can roll over the qualifying distribution attributable to the employee. Tax preparation software You can make the rollover to any eligible retirement plan. Tax preparation software   After you roll money and other property over from a 403(b) plan to an eligible retirement plan, and you take a distribution from that plan, you will not be eligible to receive the capital gain treatment or the special averaging treatment for the distribution. Tax preparation software Second rollover. Tax preparation software   If you roll over a qualifying distribution to a traditional IRA, you can, if certain conditions are satisfied, later roll the distribution into another 403(b) plan. Tax preparation software For more information, see IRA as a holding account (conduit IRA) for rollovers to other eligible plans in chapter 1 of Publication 590. Tax preparation software Nonspouse beneficiary. Tax preparation software   A nonspouse beneficiary may make a direct rollover of a distribution from a 403(b) plan of a deceased participant if the rollover is a direct transfer to an inherited IRA established to receive the distribution. Tax preparation software If the rollover is a direct trustee-to-trustee transfer to an IRA established to receive the distribution: The transfer will be treated as an eligible rollover distribution. Tax preparation software The IRA will be considered an inherited account. Tax preparation software The required minimum distribution rules that apply in instances where the participant dies before the entire interest is distributed will apply to the transferred IRA. Tax preparation software    For more information on IRAs, see Publication 590. Tax preparation software Frozen deposits. Tax preparation software   The 60-day period usually allowed for completing a rollover is extended for any time that the amount distributed is a frozen deposit in a financial institution. Tax preparation software The 60-day period cannot end earlier than 10 days after the deposit ceases to be a frozen deposit. Tax preparation software   A frozen deposit is any deposit that on any day during the 60-day period cannot be withdrawn because: The financial institution is bankrupt or insolvent, or The state where the institution is located has placed limits on withdrawals because one or more banks in the state are (or are about to be) bankrupt or insolvent. Tax preparation software Gift Tax If, by choosing or not choosing an election, or option, you provide an annuity for your beneficiary at or after your death, you may have made a taxable gift equal to the value of the annuity. Tax preparation software Joint and survivor annuity. Tax preparation software   If the gift is an interest in a joint and survivor annuity where only you and your spouse have the right to receive payments, the gift will generally be treated as qualifying for the unlimited marital deduction. Tax preparation software More information. Tax preparation software   For information on the gift tax, see Publication 559, Survivors, Executors, and Administrators. Tax preparation software Prev  Up  Next   Home   More Online Publications