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Donna Cline

Sold company stock in 2021, got CP2000 in December, now CP3219A - total nightmare dealing with this

So I'm at my wits end with this tax situation. Back in 2021, I exercised some stock options from my employer - about $23,500 worth. When I filed my 2021 taxes, I thought I included everything correctly - submitted all the forms, reported the income, etc. Fast forward to December 2023, I get this CP2000 notice saying I underreported income by like $12,700! They're saying I owe an additional $4,300 in taxes plus some penalties. I immediately called a tax professional who looked over my return and said I did make a mistake - I didn't include one of the stock transactions properly. We sent a response agreeing to the assessment and thought it was handled. Now in March 2024, I get this CP3219A Notice of Deficiency in the mail talking about a "statutory notice of deficiency" and "90-day letter" and saying I need to petition the tax court if I disagree!? I don't disagree with owing the money, I already acknowledged the mistake. But now I'm totally confused about what I'm supposed to do. Do I need to respond to this? Pay something again? I thought we already sorted this out with the CP2000 response. The IRS phone lines are absolutely impossible to get through. I've tried calling 8 times and never get a human. Has anyone dealt with this before? I'm losing sleep over this whole mess.

So it sounds like you're caught in a pretty common IRS timing issue. Here's what's likely happening: Your response to the CP2000 and the IRS sending the CP3219A probably crossed in the mail. The CP3219A is essentially the next step in the process if they don't receive a response to the CP2000. First, don't panic. If you already agreed to pay the additional tax from the CP2000, you should call the IRS at the number on your notice and explain that you've already responded to the previous notice. They'll be able to verify whether your response was received and processed. If you can't get through on the phone, send a written response to the address on the CP3219A explaining that you've already agreed to the assessment in response to the CP2000. Include copies of any documentation you sent previously. The good news is that since you agree with the assessment, you won't need to petition the tax court. But you do need to make sure the IRS knows you've agreed to pay so they don't escalate this further.

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If they already agreed to pay on the CP2000, wouldn't the IRS system have that noted? I thought these notices were automated. Do they really need to respond AGAIN to the new notice?

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Yes, ideally the IRS system would note their agreement, but there's often a processing delay between when they receive your response and when their system updates. This is especially true during busy periods or if their response was sent near the deadline. When responses and automated notices cross in the mail, it can create this exact situation. It's always best to follow up on a CP3219A notice even if you've already responded to the CP2000, just to make sure everything is properly documented in their system.

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Dylan Fisher

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I went through almost the exact same situation last year with stock I sold. After weeks of stress and getting nowhere with the regular IRS number, I discovered taxr.ai (https://taxr.ai) which helped me figure out what was happening with my notices. It analyzes all your tax documents and gives you a clear explanation of what's happening and what steps to take. For me, it confirmed that my CP3219A was sent automatically before my CP2000 response was processed - exactly like what's happening to you. The site helped me draft a response letter that referenced my previous agreement, and explained exactly where to send it. Saved me from having to hire a tax professional for something that turned out to be pretty straightforward once I understood what was happening.

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Edwards Hugo

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Does taxr.ai actually connect you with a tax pro or is it just some AI tool? I've got a similar issue with some RSUs I sold and the documentation is confusing as hell.

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Gianna Scott

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I'm skeptical of these online services. How does it work with the actual IRS forms? Can it help figure out if you calculated the basis correctly in the first place? That's where I messed up with my stock sales.

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Dylan Fisher

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It's not just an AI tool - it connects your documents with tax professionals who specialize in these exact situations. They review everything and provide specific guidance based on your actual notices and documents. For stock sales and basis calculations, that's actually one of the things they're really good at. You upload your 1099-B and any company stock documentation, and they'll check your basis calculations to identify exactly where the discrepancy is. They'll show you the correct amounts and how to properly document everything for the IRS, whether you need to adjust your original filing or respond to notices.

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Gianna Scott

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I was really skeptical about taxr.ai at first (mentioned above), but I was desperate with my own CP2000 situation involving stock sales where I had calculated my basis all wrong. Decided to give it a shot since I couldn't get any traction with the IRS phone lines. The service was actually legit - uploaded my notices and supporting documents, and within a day got a detailed explanation of exactly where my basis calculations were wrong and how to fix them. They even provided a template response letter that referenced the specific tax code sections relevant to my situation. Just sent everything in last month and got confirmation from the IRS that my case was resolved. Saved me from having to hire a CPA for what turned out to be fixable once I understood what was happening.

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Alfredo Lugo

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If you're still struggling to get through to the IRS, I finally got through using Claimyr (https://claimyr.com). After trying for weeks to call the IRS about my own CP3219A notice from stock sales that weren't reported correctly, I was ready to give up. Their service basically holds your place in the IRS phone queue and calls you when an agent picks up. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c. I was super skeptical at first but I was out of options. Got connected to an IRS agent in about 45 minutes instead of the hours I was spending on hold getting nowhere. The agent confirmed my CP2000 response was in their system but hadn't been fully processed when the CP3219A automatically went out. They put a hold on further collection activity while they finished processing my original response.

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Sydney Torres

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Wait, how does this actually work? They just sit on hold for you? I don't get how that's even possible. And is it secure? I'm not giving my tax info to some random service.

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This sounds like BS. The IRS phone system is notoriously impossible. If this service actually worked, everyone would be using it. I've been trying to reach someone at the IRS for over a month about my own CP2000.

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Alfredo Lugo

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They use a system that holds your place in the IRS queue and then calls you when it's about to connect with an agent. You don't share any tax details with the service - they just get you connected to the IRS, and then you talk directly with the IRS agent yourself. The reason everyone doesn't know about it is because it's relatively new. I was skeptical too but after spending literally 8+ hours trying to get through on my own across multiple days, I was willing to try anything. It worked exactly as advertised - got a call back when an agent was on the line, and I handled everything from there.

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I need to eat some humble pie here. After posting my skeptical comment about Claimyr above, I decided to try it anyway out of pure desperation with my own CP2000 situation. I figured it couldn't be worse than the 6 failed attempts I'd already made. It actually worked exactly as described. I got a call back in about 35 minutes with an IRS agent already on the line. The agent confirmed that my CP2000 response (for unreported stock sales) had been received but was still being processed. They put notes in my account to prevent further escalation while my response is being reviewed. The agent said this happens all the time with their automated notice system and my situation wasn't unusual. Saved myself countless hours of frustration, and probably saved me from getting a CP3219A like the original poster. Worth every penny for the time saved alone.

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Caleb Bell

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One thing nobody mentioned yet - you need to make sure you actually pay the amount you agreed to on the CP2000. Even if you responded agreeing to the assessment, if you didn't send the payment, they'll continue with collections. The CP3219A is basically saying "last chance before we really escalate this." Call the IRS (use one of the methods suggested above since getting through is a nightmare) and make sure: 1) your response was received, and 2) verify if your payment was received. If not, pay it ASAP. For future reference - stock sales are one of the biggest triggers for CP2000 notices because the basis reporting is so complicated. Always double check your 1099-B against the actual transactions.

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Donna Cline

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Thanks for bringing this up - it's possible I didn't actually pay after responding. I sent back the response form agreeing to the amount, but now that I think about it, I don't remember if I included a check or if I was supposed to wait for a payment instruction. That could definitely be the issue. Has anyone here paid after responding to a CP2000? Did you include payment with your response or wait for them to send payment instructions?

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Caleb Bell

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You generally have two options: you can include payment with your CP2000 response, or you can wait for the IRS to send you a bill after processing your response. If you chose the second option and they haven't processed your response yet, that's likely why you received the CP3219A. I'd recommend calling the IRS (using one of the methods others suggested to get through) and ask about the status of your case. Tell them you agreed to the CP2000 and want to pay the amount due immediately. They should be able to take your payment over the phone or give you instructions for paying online. Make sure to get a confirmation number for any payment you make.

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Make sure you're calculating the correct cost basis for your stock sales. This is the #1 reason people get these notices for stock transactions. The IRS gets the sale price reported from brokerages but often doesn't get the correct purchase price, especially for employee stock options or RSUs. For the future, keep detailed records of all stock purchases, grants, and vesting schedules. The default basis reporting is frequently wrong for company stock plans and can trigger these kinds of notices.

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Rhett Bowman

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This happened to me too. My company's stock admin platform reported the sales to my brokerage but the cost basis information didn't transfer correctly. The IRS only saw the proceeds and thought I made way more profit than I actually did. What a mess.

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