In this blog, we’re going to talk about the Audit Reconsideration Process.
What is an Audit Reconsideration?
An Audit Reconsideration is the process of requesting that the IRS reopen an audit that has been previously closed.
According to the IRS, there are four scenarios in which you can request an Audit Reconsideration, and they include the following:
- You were not able to appear for your audit.
- You moved and did not receive any correspondence from the IRS and, in turn, did not know the audit was occurring.
- You went through the process of an IRS audit but now have additional documentation to present that was unavailable at the time of the original audit.
- The IRS completed their audit, but you still disagree with their assessment.
It is important to note that you cannot request an Audit Reconsideration if:
- You’ve already paid the amount owed.
- You’ve already signed a written agreement to pay the amount owed.
- The amount of tax owed is the result of a final partnership adjustment under the Tax Equity and Fiscal Responsibility Act (TEFRA).
- The United States Tax Court (or another court) has already ruled that you owe the tax.
When can I request an Audit Reconsideration?
An Audit Reconsideration can be requested any time after the audit occurred and the tax remains unpaid.
- Review all the documentation received from the IRS.
- Determine the IRS’ position and note why you disagree with it.
- Collect and organize any personal documentation that you believe helps defend your claim.
- Make sure it applies to the tax year in question and that it is not information that has already been submitted to the IRS.
- Make copies of the notice(s) you are responding to and the documents you want to send to the IRS. Never send originals.
- Write a letter that clearly explains your position. Make sure to include your contact information so that the IRS knows how to get in touch with you.
- Send a copy of your letter, the IRS notice(s) in question, and your documentation to the IRS. This can be done via mail or fax.
- If you are going to mail your documents, we highly recommend sending the information by certified mail so you can confirm when it was sent and received.
- If you are going to fax your documents, make sure to include identifying information on every page of the fax. For example, you should note your ITIN or Social Security number at the bottom of every page you are sending.
- After your documentation has been sent, reach out to the IRS Collections Division. Let them know you are requesting an Audit Consideration and ask that they implement a hold on the amount due. This will prevent the IRS from taking any collection action while the reconsideration is in process. If they are not able to put a hold on your account, your other option is to request a Collection Due Process Hearing or, if that option is not available, an equivalent hearing. Keep in mind that the IRS is not required to suspend collection activity while your audit reconsideration is being reviewed.
What happens after I submit a request for Audit Reconsideration?
If you do not hear back from the IRS after 30 days, follow up. Continue to do this until you receive a response from the IRS. They will typically respond to your request by mail and let you know whether they agree, disagree, or need additional information regarding your claim. If the IRS requests additional information, you generally have 30 days to provide that information or the audit reconsideration may be closed.
What if the IRS denies my request for Audit Reconsideration?
If the IRS continues to disagree with your claims, you have a couple of options. You can request an Appeals Conference, where you can again make your arguments to reduce the taxes owed. Or you can pay the amount in full and file a formal claim in court. Per the IRS website, “
You can file a suit in a United States District Court or the United States Court of Federal Claims.” If you do neither, the IRS will send you a bill for the amount due.
What if I don’t want to face the IRS alone?
This is our favorite question of all! If you do not want to deal with the debacle of going through all the above-mentioned processes with the IRS, our Tax Debt Relief team is here to help. We specialize in helping people who are facing tax debt and either don’t know where to start or who don’t have the time or resources to deal with the IRS.
Your first step would be to visit our website and request a no-obligation consultation with one of our Tax Professionals. From there, they would advise you on your best next steps or offer a quote on what we would charge to do all the work on your behalf. If you decide to work with us, the Tax Professional assigned to your case will deal with the IRS, so you don’t have to.
If you are interested in getting more information or would like to get started, click
here to check out our website – our Tax Professionals are standing by and ready to help!