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.