Background

Audit reconsideration exists so taxpayers can seek correction when a completed audit misses documents, contains factual errors, or was based on incomplete information. In my practice I’ve seen audits reversed or adjusted after clients supplied items the original auditor didn’t have — for example, missing receipts, corrected W‑2/1099s, or an amended return reflecting a bona fide error.

When to request an audit reconsideration

Request reconsideration if any of the following apply:

  • You found verifiable documentation that wasn’t available to the auditor (receipts, bank records, corrected forms).
  • A reporting error (e.g., a late or missing 1099, transposed figure) changed the audit’s conclusion.
  • You submitted an amended return after the audit that affects assessed tax or credits.
  • The auditor applied the wrong law or misunderstood your facts.

If your issue is only disagreement with the auditor’s interpretation of law and you still have appeal rights (e.g., through the IRS Appeals Office), discuss appeal options with a tax professional — reconsideration is best when there is new, concrete evidence.

Key documents to include (what to send)

Provide a clear, organized packet — include originals or legible copies and a one-page cover letter summarizing the request.

Essential items:

  • Copy of the original audit report or notice (assessment, Form 4549, or CP/notice) — shows what was changed.
  • Cover letter explaining why you request reconsideration and a brief chronology of events.
  • New evidence: receipts, invoices, bank statements, cancelled checks, mileage logs, contemporaneous records.
  • Corrected information: amended returns (Form 1040X), corrected W‑2/1099s, or employer statements.
  • Supporting statements: sworn affidavits, accountant or preparer letters, or business records that corroborate facts.
  • Computation worksheet showing how the evidence changes tax, penalties, or interest.

How to prepare and submit

  1. Assemble a concise packet. Start with a one‑page summary stating the audit year, the IRS contact/notice number, the adjustment being contested, and the relief requested.
  2. Organize evidence in tabs or clearly labeled PDF pages (if submitting digitally by mail scanning is still required; follow IRS submission instructions).
  3. Send the packet to the address on the audit notice or the audit unit that handled the case. The IRS page “Understanding Audit Reconsideration” explains current submission addresses and procedures (IRS).
  4. Keep proof of delivery (certified mail or tracked courier) and retain copies of every document you submit.
  5. Expect IRS review to take weeks to months depending on complexity; follow up if you don’t receive an acknowledgement within 30–60 days.

Timelines and limits

There is no single universal deadline labeled “reconsideration window.” Time limits that affect your case depend on the underlying tax year and the statutes for assessment, refund claims, or collection. For example, refund claims often follow a three‑year rule, while the collection statute is generally ten years. Because deadlines vary, act promptly and consult the IRS guidance on audit reconsideration and your tax adviser for deadlines that apply to your situation (IRS).

Real-world example

A small-business client was assessed for home‑office expenses after losing receipts. We located bank statements and digital invoices showing the purchases; we submitted a concise packet including a worksheet reconciling payments to expenses. The IRS reopened the file and removed part of the disallowance, reducing the assessed tax and penalties.

Professional tips

  • Start with a clear cover letter. The IRS reviewer should immediately see what changed and why the audit result is incorrect.
  • Reconstruct missing records using contemporaneous bank records, third‑party statements, or invoices — these carry weight.
  • If you amend a return (Form 1040X), include a copy in the packet and explain why it wasn’t available during the original audit.
  • If penalties are at issue, request penalty relief separately if merited and cite reasonable cause where applicable.
  • Consider professional representation (CPA, enrolled agent, or tax attorney) for complex technical disputes.

Common mistakes to avoid

  • Sending a disorganized packet without a summary or index.
  • Waiting too long to submit new evidence.
  • Assuming reconsideration automatically removes penalties — you must demonstrate reasonable cause or correct reporting.
  • Confusing reconsideration with a formal appeal through the IRS Independent Office of Appeals; the two processes serve different situations.

Related resources on FinHelp

Authoritative sources and further reading

Professional disclaimer

This content is educational and not individualized tax advice. For case‑specific guidance, consult a qualified tax professional, CPA, enrolled agent, or tax attorney.

In my practice I’ve found that an organized packet and prompt action materially improve the odds of a successful reconsideration. Follow the IRS instructions closely and document every step.