IRS Audit Reconsideration: A Positive Path to Resolving Disputes

Facing an unfavorable IRS audit outcome can be overwhelming, but here’s the good news: you might not have to accept it as the final word. The IRS Audit Reconsideration process offers taxpayers a second chance to provide additional information and challenge audit findings. With the right preparation and support, you can turn this into an opportunity to potentially reduce or eliminate tax balances.

Let’s walk through this process together step-by-step, so you can approach it with confidence and clarity.

What Is IRS Audit Reconsideration?

An IRS Audit Reconsideration is a process that allows the IRS to reevaluate the results of a prior audit when you provide new or previously unconsidered information. It’s designed to ensure fairness and accuracy in cases where the original findings may have been incorrect or incomplete.

When Should You Consider IRS Audit Reconsideration?

You may qualify for Audit Reconsideration if you meet any of the following conditions:

• You disagree with the audit findings: For instance, the IRS misclassified income or expenses.

• You have new, relevant information: Perhaps you’ve found supporting documents that weren’t available during the original audit.

• You missed your audit appointment due to valid reasons.

• You never received the audit report because you relocated.

  
  

When Audit Reconsideration Is Not an Option

Unfortunately, you won’t qualify for Audit Reconsideration if:

• You’ve already paid the full amount owed (in this case, you’ll need to file an amended return using Form 1040X).

• You previously signed an agreement accepting the findings (e.g., Form 906 or Form 870-AD).

• A court has made a final determination on your tax liability.

  
  

How to Apply for IRS Audit Reconsideration

The process for requesting Audit Reconsideration involves submitting a written request along with specific documentation to the IRS. Follow these steps to get started:

Step 1: Gather Your Documentation

Review your audit report to identify the items you dispute. Then collect:

• New information not previously provided to the IRS.

• Relevant documentation for the tax year in question, such as:

  • Receipts

  • Invoices

  • Canceled checks

  • Bank or credit card statements

    
    

Make sure your evidence is organized and clearly supports your position.

Step 2: Submit Your Request

Prepare the following materials for submission:

• A copy of your audit report (Form 4549).

• Supporting documentation.

• Materials you previously provided to the IRS (from Information Document Request Form 4797).

• A letter or IRS Form 12661 explaining the reasons for reconsideration.

  
  

Tip: Include your contact information and the best times for the IRS to reach you. Keep photocopies of all documents, as the IRS won’t accept originals.

Step 3: Send to the Correct IRS Office

Refer to IRS Publication 3598 to find the appropriate address for submitting your Audit Reconsideration request.

How Long Does the Audit Reconsideration Process Take?

The IRS typically contacts you within 30 days of receiving your request, though the full review can take several months. During this time:

• Penalties and interest may still accrue, so consider continuing any installment payments.

• If approved, the IRS may temporarily pause collection activities, though this isn’t guaranteed.

  
  

Pro Tip: To expedite your case, consider submitting Form 911 to request assistance from the Taxpayer Advocate Service.

What Happens After the IRS Reviews Your Request?

Once the IRS completes its review, you’ll receive their decision:

• If adjustments are made: The IRS may reduce or eliminate part or all of the contested tax liability.

• If no changes are made: The original balance remains due.

  
  

What If You Disagree With the Audit Reconsideration Decision?

If the IRS denies your request or you disagree with their decision, you still have options:

• Request an Appeals Conference to present your case further.

• Pay the balance and file a formal claim for a refund.

• Take no action, in which case the IRS will proceed with collection efforts.

  
  

Why Professional Guidance Can Make a Difference

The Audit Reconsideration process can be complex, but you don’t have to navigate it alone. Working with a tax professional—especially one experienced in audits—can significantly improve your chances of a successful outcome.

Take Control of Your Tax Situation Today

Dealing with an IRS audit doesn’t have to feel like the end of the road. With the right approach, Audit Reconsideration can give you a fresh start.

Ready to take the next step? Contact us today for a consultation. Let’s work together to resolve your audit issues and secure the best possible outcome.

Call us now at 1-855-826-0808 or visit getrelieabletaxrelief.com to learn more about how we can help you navigate the IRS Audit Reconsideration process.