Consider Filing for an Audit Reconsideration

Simply hearing the word “audit” can often make taxpayers shudder. But these situations are not hopeless. If you were surprised by an unexpected audit and were unprepared, you may be able to file for reconsideration. There is usually no form required. Simply mail your request to the office which issued your examination report. The IRS generally responds with a decision within 30 days

Before you submit a request for reconsideration you should carefully review the previous examination report and identify which items you believe are incorrect. You can file a reconsideration request if you meet any of the following criteria.

  • You did not appear for your audit.
  • You moved and did not receive correspondence from the IRS.
  • You have additional information to present that you did not provide during your original audit.
  • You disagree with the assessment from the original audit.

If you meet one of the listed requirements, you should gather any new documents or information that you did not previously submit. Use this documentation to support your position. Photocopy the new documents and attach them to letter explaining reconsideration request. Once they have received this letter the IRS can accept your information unconditionally, elect for a partial acceptance, or decide that the information you provided did not support your claim.

There are four special restrictions that you should note before filing for reconsideration. First, you cannot submit an audit reconsideration request if you have previously agreed to pay the tax you owe on form 906 or another closing or compromise agreement. Second, you cannot file for reconsideration if the US Tax Court has issued a final ruling on your case. Third, if you are currently paying on an installment plan, you must continue to make payments during the appeal. Finally, if you have already paid the amount due, you must file a 1040X amended US tax return.

Questions? Examine IRS publication 3598, found at http://www.irs.gov/pub/irs-pdf/p3598.pdf