If you received an IRS audit notice in the mail, and you disagree with it, the process to have it reconsidered by the IRS is a long and stressful one. Luckily, we can help you understand what exactly an audit entails and how it may be successfully reconsidered.
What Is an Audit?
An audit is a review of you or your business’s financial information conducted by the IRS to verify that the tax information you provided them is correct. An audit will always be initiated by mail so if you receive a phone call regarding an audit it is not legitimate. When conducting your audit, the IRS will either do so by mail or an in-person interview. If you find yourself being audited, be prepared to show additional documentation regarding the information present on your tax return. If you disagree with the audit that you received, you may request that it is reconsidered.
How Do I Request an Audit Reconsideration?
For your audit to be considered for reconsideration, your case must comply with at least one of four situations. You must either possess information concerning your income or expenses that was not previously considered, failed to appear for your audit appointment, disagree with the audit sent to you by the IRS, or moved residence and never received the initial audit report. However, if you have already paid off the full amount you owed, had previously signed Form 906 to exhibit your agreement to pay the amount stated on the audit, or if a court has ordered that you must pay off the amount, you will be unable to file for reconsideration.
When requesting your audit to be reconsidered, there are two steps that are critical to complete. The first step is to gather supporting documentation. After reviewing your audit report and finding the information you do not agree with, you must provide documents relevant to your dispute. This documentation must not have been present in your initial audit and must be from the tax year that was audited. If not, the IRS will not reexamine your case.
The second step is to send your gathered documents to the office with whom you last corresponded. You must send a letter that states what about your audit that you disagree with and why you disagree as well as why you believe that the audit should be reconsidered. The IRS recommends that you use Form 12661 as a template to complete said letter. Furthermore, you must also submit a copy of your audit report (IRS Form 4549), copies of the new documents that support your case, and copies of the information which you initially gave the IRS. It is critical that the documents that you send are not original copies as the IRS will not be sending them back. Furthermore, it is also important that if you have an Installment Agreement set up that you continue to pay it throughout the process.
How Long Does Audit Reconsideration Take?
The IRS will typically respond to your reconsideration request within 30 business days; however, it may take them a little longer due to COVID-19. If the information you sent was not enough to determine your case, the IRS will request more through a letter. Once you receive a response form the IRS, it can be one of three options. The IRS will find that all the information you sent was adequate and remove the tax previously emplaced by the audit, agree with only some of the information and partially reduce the tax owed, or the IRS will find that the information provided was insufficient and the audit will stand.
If you agree with the reconsideration results you may pay off the balance that you owe in full or set up a payment plan. If you do not, you may request a meeting with the Office of Appeals where you will want to be represented by an experienced tax attorney.
How We Can Help
Delia Law will assist you throughout the process of having your audit reconsidered. We will help you gather all the relevant documentation and compose a letter for you to send to the IRS. Moreover, we will represent you in a meeting with the Office of Appeals if you do not agree with the outcome of the reconsideration.
Call us today at our San Diego Office (619) 639-3336, our Los Angeles Office (310) 494-0100, our Bethesda Office (410) 630-3336, or our New York Office (646) 862-2854 for a free consultation. You may also complete the form below to contact Delia Law for a no-cost attorney consultation.