Disagree with an IRS Tax Audit – Ask for Tax Audit Reconsideration – Affordable Former IRS Who Agents Know System.
How to Request IRS Audit Reconsideration?
Dealing with an IRS audit can feel scary, especially when it seems like there’s no way out. But what if you could get a second chance? With decades of experience, I can help you do just that. As a former IRS agent, I know how to get your case reopened for a fresh review. I’ve spent over 60 years understanding the system inside out, and I can use that knowledge to reduce your tax audit representation costs.
With IRS audit reconsideration, we’ll work to settle your tax debt. Michael D. Sullivan, with extensive experience as a former IRS agent and IRS consultant, specializes in reopening IRS tax audits and significantly cutting down the IRS audit reconsideration process time.
The IRS often conducts audits without taxpayers even realizing it, and other times, you may simply disagree with the audit findings. That’s where we step in. We can request an IRS Tax Audit Reconsideration to get your case reviewed again, potentially saving you both time and money.
Take advantage of our team’s 60+ years of expertise within the IRS. Let us help you get the resolution you deserve.
What is Audit Reconsideration?
An audit reconsideration is a procedure offered by the Internal Revenue Service (IRS) that allows taxpayers to challenge the findings of an IRS audit. This process is particularly useful if you disagree with the IRS’s conclusions about your tax return. Or when the IRS has prepared a substitute return for you under the authority of the Internal Revenue Code 6020(b) because you failed to file a return.
By requesting an audit reconsideration, you have the opportunity to present new information or evidence that may alter the audit’s outcome, potentially reducing your tax liability or penalties.
This option ensures taxpayers have a fair chance to rectify discrepancies and advocate for an accurate assessment of their tax obligations.
Reasons to Request an IRS Tax Audit Reconsideration
If you’ve undergone an IRS audit and are dissatisfied with the outcome, you may have the option to audit reconsideration request IRS. This process allows you to challenge the audit results under specific circumstances, offering you a chance to address any discrepancies or provide additional information.
Here are some common reasons to consider requesting an IRS tax audit reconsideration:
Did Not Appear for Your Audit
If you missed your scheduled audit appointment, you may not have had the opportunity to present your case effectively. Whether due to an oversight, scheduling conflict, or misunderstanding, not appearing for your audit can result in unfavorable conclusions. Audit reconsideration allows you to revisit the situation and present your documentation and arguments to the IRS. These are times when you can get immediate help from IRS problem solvers for better management of the situation.
Relocated and Did Not Receive Correspondence from the IRS
Relocating without updating your address can lead to missed communications from the IRS. If you didn’t receive critical notices or correspondence regarding your audit, you might not have been able to respond appropriately. Audit reconsideration can help rectify any misunderstandings that arise due to missed communications.
Have Additional Information to Present
If you have new evidence or documentation that was unavailable during your original audit, you can request reconsideration to present this information. This might include receipts, statements, or other pertinent records that can impact the audit results and lead to a more accurate assessment of your tax situation.
Disagree with the Assessment from the Audit
If you believe the audit’s conclusions are incorrect or unjust, you can request reconsideration to challenge the findings. By presenting a well-organized case with supporting documentation, you have the chance to argue your perspective and potentially alter the audit’s outcome.
If you believe any of the above situations apply to you, it may be beneficial to pursue this process to achieve a fair resolution. If you are still in doubt, get help from an individual who offers IRS tax audit defense, like MD Sullivan Tax Group.
Apart from reconsideration service, the team also provides essential services like IRS tax debt settlement help, IRS debt forgiveness programs, and innocent spouse tax relief. Plus, if you’re facing issues like an IRS bank levy, their expertise will guide you through every step to find the right solution.
How to Request IRS Audit Reconsideration?
Requesting an IRS audit reconsideration is a process that allows you to contest the findings of an IRS audit if you believe there has been a mistake or oversight. To effectively request reconsideration, follow these steps:
Review Your Audit Report and Collect New Documents
After an audit, the IRS sends a report that details their findings. Carefully reviewing this report to identify the items you want reconsidered. This will help you gather the necessary documents to support your request.
Make sure any new documents you provide haven’t been reviewed before and specifically relate to the tax year in question. If you’ve already paid the full amount assessed, you’ll need to file Form 1040X for a formal claim instead.
Submit Your Documents to the IRS
Once you’ve gathered everything, submit the documents to the IRS. This includes a copy of the audit report and all relevant documents, such as 1099 forms, bank statements, or loan papers.
If you’ve already submitted documents during the audit, include those as well. Write a simple letter explaining why you’re requesting reconsideration, or you can use IRS Form 12661 for this purpose.
Now, many ask, “How long does audit reconsideration take?” You can typically expect to hear from the IRS within 30 days regarding your reconsideration request, though they may send an IRS reconsideration letter requesting additional information if needed.
Complete IRS Form 12661 (Optional)
IRS Form 12661 is the official form for audit reconsideration. You can fill it out to explain which parts of the audit you disagree with and why. However, a simple letter works fine as well, so feel free to choose whichever option feels most comfortable. But, if you think it is too much of a hassle, contact Mr. Michael Sullivan.
Include IRS Form 4549
IRS Form 4549 is the summary of the changes made to your tax return during the audit, including penalties and interest. Be sure to attach a copy of this form to your reconsideration request, as it helps clarify the changes you’re disputing.
The Internal Revenue Service will re-open tax audits to:
- Ensuring the amount of assessed tax is correct.
- Ensuring the collection process is suspended while the reconsideration request is being considered.
- Ensuring that the procedures support the abatement of assessments inappropriate situations.
What is the Definition of an Audit Reconsideration
An IRS Tax Audit Reconsideration is the process the IRS uses to reevaluate the results of a prior audit where additional tax was assessed and remains unpaid, or a tax credit was reversed.
If the taxpayer disagrees with the original determination he/she must provide information that was not previously considered during the original examination.
It is also the process the IRS uses when the taxpayer contests a Substitute for Return (SFR) determination by filing an original delinquent return.
Reasons to request an IRS Tax Audit Reconsideration:
Some reasons for an audit reconsideration request:
- The taxpayer did not appear for the audit,
- The taxpayer moved and did not receive the correspondence from the IRS,
- A taxpayer might request an audit reconsideration also if you disagree with an audit assessment from an initial tax audit of his/her return.
If the IRS Prepared Your Tax Return Under 6020B
The taxpayer can disagree with a tax assessment created under the authority of IRC Section 6020(b), Substitute for Return (SFR). You can also request a tax audit reconsideration.
You can also qualify if you have been denied tax credits, such as Earned Income Tax Credit (EITC) claimed, during a prior examination.
Information Taxpayer Should Provide for IRS Audit Reconsideration
When requesting an IRS audit reconsideration, providing comprehensive and accurate information is crucial to supporting your case.
Here’s a guide on the information and documentation you should provide:
- All information received from the Taxpayer pertinent to the issue
- Information not considered during the original audit.
- Copies of letters and reports received by the taxpayer, if the case is NOT on RGS.
- Copies of documents already submitted by the taxpayer.
- Amended return, if applicable.
Tax Authority for the IRS to accept a Reconsideration
- The Internal Revenue Service has the discretionary authority to abate an assessment of any tax if it is excess of the taxpayer’s liability per IRC Section 6404(a) (301.6404-1) .
Acceptance of Request
A request for reconsideration will be considered if:
- The taxpayer requests the abatement of an assessment based on information that was not previously considered which, if considered, would have resulted in a change to the assessment.
- The taxpayer files an original delinquent return after an assessment was made due to a return executed by the IRS under IRC Section 6020(b) or other substitute-for-return procedures.
- There was an IRS computational or processing error in assessing the tax.
Non-Acceptance of Request
An IRS audit reconsideration request will not be considered if:
- The taxpayer has already gone through an IRS audit reconsideration process in the past.
- The current request doesn’t provide any new or additional information that could potentially change the outcome of the previous audit. Without fresh evidence or documentation, the IRS is unlikely to revisit the audit results
Other Pertinent Information
- The assessment was made due to a compromise under IRC Section 7122. These agreements are final and conclusive.
- The assessment was made as the result of the final Tax Equity and Fiscal Responsibility Act (TEFRA) administrative proceedings.
- The assessment was made as a result of the taxpayer agreeing on Form 870-AD, “Offer of Waiver of Restrictions on Assessment and Collection of Deficiency in Tax.”
- The United States Tax Court has entered a decision that has become final, or a District Court or the United States Court of Federal Claims has rendered a judgment on the merits that has become final.
Noteworthy Facts:
Any request for audit reconsideration on cases that were settled by the Tax Court, District Court, or Court of Federal Claims should be forwarded to the Office of the Associate Area Counsel for forwarding to the docket attorney. When the Tax Court dismisses a case for lack of jurisdiction, it does not enter a decision and the case is not dismissed on the merits. See IRC Section 7459(d). Likewise, when a District Court or the United States Court of Federal Claims dismisses a case for lack of jurisdiction, the case has not been dismissed on the merits.
IRS Audit Reconsideration Forms
When the IRS completes an audit, you may find that you disagree with the results. Whether due to overlooked documentation or new evidence, you have the option to request an IRS audit reconsideration.
This process involves submitting specific IRS reconsideration letters and forms providing comprehensive documentation to support your case. Here is a detailed explanation of the IRS audit reconsideration form involved in the process:
1. Form 1040X – Amended U.S. Individual Income Tax Return
Form 1040X is used to amend a previously filed individual income tax return. If you have new information or corrections that affect your tax return, this form allows you to present those changes.
How to Complete?
Part I: Provide your personal information, including your name, address, and Social Security number.
Part II: Explain the reasons for amending your return. Clearly outline the new information or corrections, and why these changes affect the original return.
Part III: Enter the corrected amounts, the original amounts, and the difference for each line item. Attach any supporting documentation, such as new receipts or corrected forms, to substantiate your changes.
2. Form 843 – Claim for Refund and Request for Abatement
Form 843 is used to claim a refund or request an abatement of certain types of taxes, penalties, or interest. If you believe the IRS incorrectly assessed penalties or interest during the audit, this form can be used to request their removal.
How to Complete?
Part I: Enter your personal information, including your name, address, and Taxpayer Identification Number (TIN).
Part II: Specify the type of tax, penalty, or interest you are requesting to be abated or refunded.
Part III: Provide a detailed explanation of why you believe the assessment is incorrect and why you are entitled to a refund or abatement. Include any supporting documentation to back up your claims.
3. Form 12661 – Disputed Issue Verification
Form 12661 is specifically designed for taxpayers to dispute the findings of an audit. This form allows you to list the specific issues you disagree with and provide documentation to support your position.
How to Complete?
Part I: Enter your personal information, including your name, address, and TIN.
Part II: List each issue you are disputing from the audit findings. For each issue, provide a detailed explanation and attach relevant documents, such as receipts, invoices, or letters, that support your position.
4. Form 8862 – Information to Claim Certain Credits After Disallowance
Form 8862 is used if you are reapplying for certain tax credits that were disallowed in a previous year. If the audit resulted in the disallowance of credits such as the Earned Income Tax Credit (EITC), you will need to submit this form to claim those credits again.
How to Complete?
Part I: Enter your personal information, including your name, address, and Social Security number.
Part II: Answer a series of questions about your eligibility for the disallowed credit. Provide detailed information and attach any supporting documentation required to prove your eligibility.
By understanding and correctly using these forms, you can effectively complete the IRS audit reconsideration process and improve your chances of a favorable outcome.
How Do Our Audit Reconsideration Services Work?
At MD Sullivan Tax Group, we understand the stress and complexity that comes with an IRS audit. Our audit reconsideration services are designed to help you through the challenging process with ease and confidence.
We do a detailed consultation to understand your situation and review the specifics of the IRS audit. Our experts analyze all the relevant documents and audit findings to identify the key areas that need reconsideration. We ensure all supporting documents are thoroughly reviewed and accurately presented to strengthen your case.
With over 250 years of cumulative direct IRS experience, MD Sullivan Tax Group is your trusted partner in resolving IRS audit issues efficiently and effectively.
Frequently Asked Questions
IRS audit reconsideration is a process that allows taxpayers to dispute the results of an IRS audit after the assessment has been made. You might need to request audit reconsideration if you disagree with the audit findings, have new information or documentation that was not presented during the original audit, or believe that the IRS made an error in processing your case.
The process begins when you submit a formal request for audit reconsideration to the IRS, along with supporting documentation. The IRS will then review your request and the new information you provide to determine if adjustments to your tax liability are warranted. If your request is accepted, the IRS will either reduce your tax liability or reaffirm the original findings.
Common reasons for requesting audit reconsideration include:
- New information or documentation that was not considered in the original audit.
- Errors in the IRS’s calculations or processing during the original audit.
- The taxpayer never received the original audit notice or was unaware of the audit.
- The taxpayer disagrees with the audit findings and can provide evidence to support their position.
The audit reconsideration process can vary in length depending on the complexity of the case, the amount of documentation submitted, and the IRS’s current workload. Generally, it can take around 30 days (or more) for the IRS to review the request and decide.
You should provide any new information or documents that were not submitted during the original audit but are relevant to the case. This could include receipts, bank statements, corrected tax returns, or other records that support your position. The key is to provide documentation that directly addresses the issues raised in the audit.
Yes, if you disagree with the outcome of the audit reconsideration, you can appeal the decision. This is typically done through the IRS Office of Appeals. You must follow the appropriate appeal procedures, including filing within the allowed time frame after receiving the reconsideration decision.
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