IRS Notice CP19 starts by saying, "Changes to your [year] Form 1040 - Proposed amount due: [$amount] - After reviewing your [year] tax return, we believe you've incorrectly claimed certain exemptions or credits".
Essentially, Notice CP19 is used by the IRS to report unilateral changes made to your return. It often follows a Notice CP18. When the IRS denies you a refund they send Notice CP19. If the IRS partially denies a refund they send Notice CP20.
The most common reason to send this notice is to deny you a Fuel Tax Credit. This credit is claimed on Form 4136. The IRS prints Publication 510 which has a chapter devoted to the Fuel Tax Credit.
The IRS was concerned about scams involving the Fuel Tax Credit so they have been auditing these returns for the last few years.
Respond to Notice CP19
So, to respond to the IRS Letter CP19, you'll have to determine if you are entitled to the Fuel Tax Credit. Review Publication 510 for all the qualifications & limitations.
You may determine that you are entitled to the deduction. In that case, you'll need to get a letter from your employer or your companies employee manual to prove that your employer doesn't pay the tax. You only get the credit if you had to pay for the fuel.
Next, you'll have to get all your fuel receipts, mileage or trip logs, payments & reimbursements to prove your claim. This will take a lot of work since the IRS will want your evidence properly organized or they won't review it. They will simply continue to deny the credit. Fortunately, there is a section in the Audit Defense Program devoted to the Fuel Tax Credit for specific guidance.
If you received Notice CP20, the IRS has denied your refund & you may pursue a Claim for Refund. However, if they sent you Notice CP19, they think you owe so you'll have to follow the Collection Prep Steps until the problem can be reversed.
Each case has different tactics & strategies so please call Mr. Hopkins for a full Action Plan to win your case.
Various IRS Notices CP19:
