How to File an IRS Audit Reconsideration Request
An audit reconsideration request is the process by which a taxpayer is allowed to dispute the results of a recent audit of their tax return. If you disagree with audit results that prompted the IRS to assess additional taxes to you or a tax credit was reversed, the IRS may very well agree to take a second look at your case.
Do You Qualify for an IRS Audit Reconsideration?
You might be eligible to request an audit reconsideration if the following four conditions are met:
- The tax return in question must already be filed.
- The taxpayer must have new or additional information that was not part of the original audit process.
- The taxpayer cannot have already paid the taxes assessed.
- The taxpayer needs to be able to communicate which portion of the audit is in dispute.
How To File
If you have determined that you are eligible for an IRS reconsideration request, your next step is to file your request with the IRS. Keep in mind that the IRS is not required to review or accept your request; they have full discretion over how they handle each reconsideration request. You must take the following steps to ensure that the IRS will actually review and potentially accept your information.
- Communication:The IRS itself states there is no official form for a request for reconsideration, so it’s up to how you phrase your letter and to include copies of any documents you need to prove your points. Your letter should outline the reason for the reconsideration request, a summary of your situation, documentation. Include details about new information that you would like reviewed since the audit took place. The more detailed information and documentation that you can provide, the better. The IRS does suggest that you include the Disputed Issue Verification Form 12661.
- Tax Return:You should submit a copy of the submitted tax return in question, even if you have previously included this information.
- Audit Report:You should also include a copy of the audit report you received if possible.
- Submission:You should submit the reconsideration request to the tax office that you have been in communication with. Again, there is no special form required for this request, however Form 12661 is useful.
What Happens Next?
You can expect to hear from the IRS regarding your reconsideration request within about thirty days of submission. You will likely get your response from the IRS in writing. Ensure your phone number is up to date and your line is active and working. They will most often send you a written explanation that is attached to your documentation. It is difficult to predict whether a reconsideration request will be granted, but if you have cause for filing one, you should certainly try.
What Can Make a Stronger Case For the IRS To Possibly Reconsider Your Audit Results?
- Have you received new data or proof after the audit was initially conducted?
- Were you not present during the audit?
- Can you prove there was a computer or data entry error?
- Did you move and not receive correspondence from the IRS?
Do I Still Have To Pay If I’m Waiting For The IRS To Respond?
Firstly, see if you qualify for an extension or can prove to the IRS that you are experiencing financial hardships and are incapable of paying.
In the case that you do not qualify for an extension or one is not granted, and the IRS does not accept your proof that you cannot pay, then absolutely; you should pay the installment amounts so that the IRS does not penalize you with interest.
If you’ve exhausted all of your avenues and you’ve paid the IRS, you can request a refund from the IRS for what you have paid them using form 1040X, Amended U.S. Individual Income Tax Return.
Consider Getting Help With Your Request
As with many complicated tax issues, it is often extremely useful to get assistance from a reputable tax firm so that you can put your strongest case forward to the IRS. Success Tax Relief has handled many reconsideration requests for our clients in our thirty years of experience. Our team is familiar with all current tax law and can review your tax return, audit report and any new information to determine whether your request is strong enough to be put forth.
If you have completed the audit process, disagree with the results and have some new information that should be considered, contact our team before you move forward. We will help you take the next step towards clearing up any issues with the IRS!