IRS audits can be overwhelming and unsettling because individuals keep asking where exactly they went wrong? But don’t worry, it can be contested, but via something more like a plea. The IRS Audit Reconsideration request is one of the many options you probably should explore in depth, in case the IRS has made an assessment on the basis of your return and has imposed more tax liabilities. You have all the rights to disagree with the results of an IRS audit, which is exactly why you have the option to request an Audit Reconsideration. It allows taxpayers to request the IRS to consider their position. This is where the IRS takes a second, and more detailed look at your audit results in order to come to a conclusion of them being appropriate.
This totally means that however answerable you are to the government, you might as well have the right to challenge them. This time, via a request.
If you want to get an Audit Reconsideration, consider submitting a formal written request to the IRS. In the Audit Reconsideration request, you must explain in detail why you believe the audit results were originally incorrect in status, with any supporting documentation you have close in reach. It is very essential to note that an Audit Reconsideration is really not a formal appeal. But what exactly is it?
What is IRS Audit Reconsideration?
The IRS Audit Reconsideration process can be your chance to challenge an audit decision that didn’t go your way. Suppose you’ve been hit with additional taxes or lost a tax credit, and you believe the original audit didn’t consider important information. In that case, this process allows you to bring new details to the table. It’s an opportunity to have the IRS take another look and potentially reverse the outcome. This process is also used to contest a Substitute for Return (SFR) by submitting an original delinquent return or to correct any IRS computational or processing errors made by the IRS.
5 Reasons to Request an IRS Audit Reconsideration
If audit reconsideration form 4549 has landed in your mailbox, there is nothing to worry about. This letter serves to inform the taxpayer of the IRS’s findings, as well as the proposed changes they have made to the taxpayer’s tax return.
However, if you believe the IRS’s findings are inaccurate, you can request an IRS Audit Reconsideration through the audit reconsideration process, especially under the following conditions:
You Missed the Audit Appointment
If you were unable to attend your audit appointment or mail the required records, you can still request an audit reconsideration. You’ll need to present all relevant documents that support the income, deductions, or credits claimed on your return. The notice you receive will outline how and when to submit these records. The IRS will consider your request if you can provide a reasonable explanation for why the notice wasn’t fully complied with.
You Relocated and didn’t receive the Notice
The IRS assumes that once an audit notice is sent, it will be delivered to the taxpayer. They will proceed with the audit if they don’t hear back within a specified timeframe, even if you’ve relocated. If this happens, you’ll need to provide proof that you no longer reside at the address on file.
You Disagree with the Audit Assessment
If you strongly disagree with the audit assessment, you can submit a reconsideration request. This applies even if the assessment was made under Internal Revenue Code 6020(b), Substitute for Return (SFR). If necessary, you may also consider escalating the issue to the United States Tax Court.
You Have new Information that Wasn’t Originally Provided
Sometimes, new information comes to light after an audit. If this information affects your income, expenses, or deductions, it could lead to a more accurate assessment of your tax liabilities. In such cases, you can request an audit reconsideration to ensure all relevant details are considered.
There was a Computational or Processing Error
If you believe the IRS made a computational or processing error during your audit, you can request an audit reconsideration. This process allows the IRS to review the accuracy of their calculations and correct any mistakes that may have led to an incorrect assessment.
How to Write a Letter to the IRS for Reconsideration?
When submitting an IRS Audit Reconsideration, it’s essential to write a clear and concise letter explaining why you believe the audit results were incorrect. Here’s a sample letter that demonstrates how to structure your request.
If you are wondering how to write a letter to IRS this Sample Letter is what you need:
[Your Full Name]
[Your Social Security Number]
[Your Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Office Address as listed on your audit notice]
Subject: Request for IRS Audit Reconsideration
Hi [Name],
I am writing to request an Audit Reconsideration for the tax year [Year], associated with audit case number [Case Number]. After reviewing the audit findings, I believe the decision to disallow certain deductions was made in error.
During the original audit, I was unable to provide supporting documentation for [specific issue, such as “business expenses”]. I have since located the necessary records, which are included with this letter. These documents demonstrate that the expenses in question are legitimate and should be reconsidered.
I kindly request that the IRS review the new evidence and reconsider the findings of the audit. Please feel free to contact me if further clarification or additional information is needed.
Thank you for your time and attention to this matter.
Sincerely,
[Your Full Name]
[Your Contact Information]
An Insight into IRS Audit Reconsideration Process
The IRS Audit Reconsideration process is a valuable tool for taxpayers who disagree with the results of an IRS audit. This process allows you to present new information or highlight errors in the IRS’s original assessment.
Key Components of the Audit Reconsideration Process→
Submitting the Reconsideration Request
To initiate the audit reconsideration process, you must submit a written request to the IRS explaining why you believe the original audit findings were incorrect. This request should include any new documentation or information that supports your position. The IRS will review the new evidence and reassess the audit results.
Specific IRS Letters
During the reconsideration process, the IRS may send specific letters to communicate updates or requests for additional information:
- IRS Letter 3338C: This letter is sent when the IRS acknowledges the receipt of your reconsideration request and outlines the next steps in the process.
- IRS Letter 3339C: This letter is typically sent to request additional information or documentation needed to process your reconsideration request.
- IRS Letter 3340C: This letter notifies you of the IRS’s decision on your audit reconsideration, including any changes to your tax liabilities based on the review.
Forms to Consider
- Form 911: Request for Taxpayer Advocate Service Assistance and Application for Taxpayer Assistance Order
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- Purpose: If you’re experiencing significant difficulties with the audit reconsideration process, you can file Form 911 to request assistance from the Taxpayer Advocate Service (TAS).
- Usage: The TAS is an independent organization within the IRS that helps taxpayers resolve issues with the IRS, especially when standard processes are not working as they should.
- Form 4549: Income Tax Examination Changes
- Purpose: Details audit adjustments to your income, deductions, and credits, reflecting the revised tax liability.
- Usage: If you disagree with the changes, request audit reconsideration and provide documentation to challenge the adjustments.
- IRS audit reconsideration Form 12661: Request for a Collection Due Process Hearing
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- Purpose: Requests a hearing if you disagree with IRS collection actions, such as levies or liens.
- Usage: If audit reconsideration leads to collection actions you dispute, use this form to request a hearing.
- Form 906: Closing Agreement on Final Determination of Tax Liability
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- Purpose: Formalizes the agreement on final tax liability between you and the IRS.
- Usage: Use this form to finalize and document any agreed-upon adjustments after audit reconsideration.
Requirements to Request IRS Audit Consideration
There is absolutely no guarantee that the IRS Audit Reconsideration you placed will be reviewed or accepted. It should have a couple of requirements to meet in order for your request to be considered,
- You should have originally fined a return.
- The tax assessed is left unpaid or the IRS probably has reversed any form of tax credits that you disputed.
- Recognise the adjustments you’re disputing.
- You should be able to provide new information which wasn’t taken into consideration during the original examination.
- Regardless of whether there has been an IRS computational error while assessing, the amount of tax is still due from you.
How to Request IRS Audit Reconsideration
In order to request an IRS Audit Reconsideration, you should follow the steps below:
Review all Reports and Collect Documents
The IRS is going to send you an original audit report which defines how it has come to make the assessments. It is important to review them carefully in order to find out which items you would like the department to formally reconsider. This can allow you to collect several important documents to further support your request.
Submit Documents to the IRS
Every copy of all relevant documents needed to be submitted to the IRS. This is going to include a copy of your audit report and the other documents which you are relying upon to support the request you have made. This can include anything from Forms 1099 to loan documents. Alongside that, you should also include a letter which briefly highlights the reasons to seek reconsideration. It can be done either via Form 12661 or a simple letter.
Get and Attach IRS Form 12661
Form 12661 is considered as an official letter which taxpayers can fill out in order to request reconsideration. You can also equally write a simple letter to the IRS in case you do not use this form. You have to fill out the sections in the IRS form 12661 to provide all relevant information about your request.
Attach Form 4549
Also known by the name of Tax Examination Changes letter, the IRS form 4549 provides a brief summary of the proposed changes by the department for your tax return, besides any penalties and interest concluded on the basis of the audit. The IRS form 4549 substantiates the disputes you have raised.
How Do I Write an Audit Reconsideration Letter?
The question of “how to write a letter of reconsideration?” baffles many. But, it is absolutely not essential to use Form 12661 as the source of request for reconsideration can also be obtained via a simple letter addressed to the IRS. In case you choose to write a letter, make sure that it provides all the information that can support your case.
This letter should bring to attention the reasons why you are asking for a Reconsideration, the assessments you have been disputing, and also give an overview of the new information you now rely on.
Most taxpayers who walk this lane try searching for an audit Reconsideration letter template because they are often confused about what to start with. How to write a letter to IRS sample? Find the answer right below!
IRS Audit Reconsideration Sample Letter
The audit reconsideration letter template must have a proper address which specifies your case and detailed information that can help the IRS to reach a favorable point of conclusion. A general sample looks like:
[Your Name]
[Your Address]
[City, State ZIP Code]
[Date]
[IRS Address]
[City, State ZIP Code]
To Whom It May Concern,
I am writing in order to request a reconsideration of audit results for the tax year [Insert Tax Year] in my name. I have just received a notice of deficiency which specifies taxes unpaid, penalties and interest.
I understand that the IRS has already completed auditing, but it has come to my knowledge that there are a couple errors to discuss. I have further attached a detailed elaboration of documentation and my concerns to support my state.
I believe that this information was originally not taken into consideration during the audit process. I am requesting that the IRS reopens the audit and gives an additional look to review all the new information and reconsider the decision made.
I can also provide any additional documentation or information that may be needed to support my case and if it is required. I appreciate you looking forward to resolving this issue as soon as possible.
Sincerely,
[Your Name]
The template can be used for a variety of purposes, including but not limited to Notice of Deficiency, IRS wage garnishment, and more.
Drafting an Audit Reconsideration Template
You have already had a close look at how to write a letter to IRS to appeal. So, it is important to note that you only have one shot at the reconsideration process, meaning that everything you have considered to make this decision should be sent to the IRS. Even though the process seems quite easy, the best way to understand all technicalities is by seeking help from the IRS tax professionals to look deep into all the cases you might have missed. The question of “how do you write a letter to IRS?” is already solved for you, but what isn’t still remains intact. In order to send the letter, you will need viable documentation to support your claims, meaning that it’s best to let the professionals handle the rest.
How Long Does Audit Reconsideration Take?
After you have sent your request, expect to hear back from the IRS almost within a time span of 30 days. However, there can be times when the IRS takes longer than that. After they have gone through your request, they might send back an IRS Submission Processing Letter, enabling you to know that they have received and processed a tax return, payment or other types of documents.
In case you want to hurry the process, write to the Taxpayer Advocate’s Office and further request them to expedite. For the same, you are required to fill Form 922 “Request for Taxpayer Advocate Assistance”.
If the IRS rejects your request or you do not respond for additional information within a span of 30 days, the collection activity most probably will be back to life again after the final decision.
In case they accept your request, the additionally assessed tax will be removed. They might also consider reducing the tax debt. So, get in touch with one of the major tax agent services to understand where you stand today in cases like these.
Get Professional Help with Just One Call!
Don’t panic if the IRS has hit you with additional taxes after an audit—you still have a shot at turning things around! With IRS Audit Reconsideration, you can request a review if you believe the original decision was unfair or if you’ve got new evidence to present. But here’s the catch: if the IRS sticks to their decision, you’ll still be on the hook for the full amount. Keep in mind, that filing for reconsideration won’t stop the IRS from collecting unless they revise the audit based on your new information.
Why go it alone? Get expert help with just one call, and let a professional guide you through this tricky process. It could make all the difference in protecting your finances!
