The IRS allows taxpayers to request an audit reconsideration if they disagree with the outcome of an audit and have a reason for requesting reconsideration. Taxpayers may, for example, request a reconsideration if they have new information that the IRS hasn't previously considered.

The IRS has no hard-and-fast deadline for when taxpayers must request an audit reconsideration. Taxpayers cannot, however, request reconsideration if they've already paid the tax in full.

Taxpayers must have grounds for a reconsideration request, such as:

• The taxpayer didn't appear at the original audit or failed to provide requested information.
• The taxpayer moved and didn't receive notification or other communications from the IRS.
• The taxpayer has information that was unavailable or not provided during the initial audit.
• The taxpayer disagrees with the IRS's assessment based on the audit findings.

How Does a Taxpayer Request an Audit Reconsideration?

Audit reconsiderations focus on new information. When requesting a reconsideration, taxpayers should first review their audit report (Form 4549, Report of Income Tax Examination Changes) to determine the specific items with which they disagree.

Taxpayers should provide the IRS with the following:

• A letter explaining each issue or adjustment with which the taxpayer disagrees
• IRS Form 12661, Disputed Issue Verification, to support the issues or adjustments that are the basis for the request
• Any supporting documentation that supports the taxpayer's position
  • All documents should be copies, as the IRS won't return them.

The stated time for a response from the IRS is thirty days, but that's not required. In some cases, taxpayers may have to wait months before they hear back from the IRS.

If the IRS denies a taxpayer's reconsideration request, the taxpayer can:

• Request an Appeals Conference
• Pay the outstanding tax and file a refund claim in court

What Happens if a Taxpayer Already Paid the Tax?

When new information comes to light and the taxpayer has already paid the assessed tax liability, the taxpayer cannot request reconsideration. That doesn't mean, however, that they simply have to accept overpaying their taxes.

In these situations, taxpayers may file an amended return. Through this return, they can claim a refund for any overpaid tax.

For questions about audit reconsiderations or other issues related to audits, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.