When the IRS audits your tax return and concludes its review, you might feel stuck if you believe the results are incorrect or learn of new facts afterward. The audit reconsideration process lets you ask the IRS to reopen and review your audit case, providing an opportunity to submit new documents or explanations that could revise your tax liability.

Why Does Audit Reconsideration Exist?

The IRS recognizes that audits can sometimes conclude before all pertinent information is available or fully evaluated. Audit reconsideration ensures fairness by allowing taxpayers to present new evidence or clarify misunderstandings after an audit closes. This process is distinct from an IRS appeal and is intended to correct errors, omissions, or overlooked information in the assessment.

How Does Audit Reconsideration Work?

  1. Submit a Formal Request: Write a clear letter stating why you believe the audit findings should be reconsidered. Include details about the specific tax year, tax forms, and items in question.

  2. Provide New Information: Attach any new documents that were unavailable or not considered during the original audit, such as receipts, corrected 1099 forms, canceled checks, or explanations supporting deductions or credits.

  3. Send to the IRS: Mail your request and documentation to the IRS address shown on your audit report or the notice you received. Label your letter “Audit Reconsideration.” Always send via certified mail with a return receipt to confirm delivery.

  4. IRS Review: The IRS will review the case which can take several weeks to months. They might contact you for additional details.

  5. Outcome: If the IRS accepts your new information, they will adjust your tax account accordingly. If not, they will explain why and advise on further options.

Who Can Request Audit Reconsideration?

Any taxpayer who has undergone an IRS audit and has new evidence or believes an error in the audit findings may request reconsideration. This includes individuals, small businesses, and corporations. Common eligibility reasons include:

  • Missing information or documents during the original audit
  • New documents discovered after audit closure
  • Errors or misinterpretations made by the IRS during the audit
  • Failure to respond or participate in the original audit

Important Tips for a Successful Audit Reconsideration

  • Be Organized: Gather all related documents including the original audit report and new evidence.
  • Explain Clearly: In your letter, explain why the new information was not submitted earlier if applicable.
  • Use Certified Mail: This ensures your submission is tracked.
  • Be Patient: The process can take time; respond to IRS requests promptly.
  • Consider Professional Help: Tax professionals such as CPAs or Enrolled Agents can assist with preparing a strong reconsideration request.

Common Misunderstandings

  • It is not the same as an IRS appeal. Appeals are a formal process generally initiated before final audit closure or after reconsideration denial, while audit reconsideration is an IRS review of a closed audit based on new information.
  • Audit reconsideration does not automatically suspend IRS tax collection activities. If collections have begun, consider requesting a Collection Due Process (CDP) hearing or explore other IRS options.

When is Audit Reconsideration Most Useful?

  • You discovered important receipts or documents supporting deductions after the audit closed.
  • You received corrected income statements such as 1099s after the original audit.
  • You can identify an IRS clerical or factual error in your audit.
  • You were unable to participate in the initial audit process.

Related Resources

For more information on appeals and IRS procedures, see our guides on the IRS Appeals Process and IRS Collection Due Process Hearing.

Frequently Asked Questions

Q1: How long does audit reconsideration take?
A1: The IRS review can range from several weeks to months depending on complexity.

Q2: Can I request reconsideration if I missed the original audit?
A2: Yes, audit reconsideration is often used when a taxpayer did not respond or receive original audit notices.

Q3: What happens if the IRS denies my reconsideration request?
A3: You may still appeal the IRS decision or pay the tax and request a refund later. Consult a tax professional for options.

Q4: Do I need a tax professional to file audit reconsideration?
A4: It’s optional but recommended if your case is complex or you want professional guidance.

For official IRS details on audit reconsideration, visit the IRS Tax Topic 653 page: IRS.gov – Audit Reconsideration.