Audit Didn’t Go Your Way? You Can Still Fight Back!

What is audit reconsideration and how can it help you dispute an IRS audit decision? If you’ve received an IRS audit result that you believe is inaccurate or unfair, audit reconsideration could be the key to resolving the issue. This process allows taxpayers to request a review of their audit findings by providing new information or documentation that may not have been available during the original audit. Understanding how audit reconsideration works can help protect your rights and potentially reduce your tax liability.

What Is Audit Reconsideration?

Audit reconsideration is an IRS procedure that gives taxpayers a chance to dispute an audit result they believe to be inaccurate. Unlike an appeal, this process is informal and allows you to submit new evidence or documentation that wasn’t previously considered.

When Should You Request Audit Reconsideration?

You may benefit from audit reconsideration if:

• You have new documentation that supports your case.
• You disagree with the IRS’s findings due to mistakes or misunderstandings during the audit.
• The IRS did not consider relevant information that could have impacted the audit outcome.

If any of these apply to you, it may be worth considering audit reconsideration.

Steps to Request Audit Reconsideration

1. Consult with a tax professional who specializes in IRS tax representation: It helps with knowing how to navigate the IRS and understanding your rights.
2. Review Your Audit Findings: Carefully examine the audit report to understand the issues. Identify areas where the IRS may have missed critical evidence or made incorrect assumptions.
3. Gather Supporting Documentation: Collect all relevant documents that support your position. This could include receipts, tax returns, bank statements, or other records that were not available during the original audit.
4. Prepare Your Request: To begin the audit reconsideration process, you must write a formal request explaining why the audit decision was incorrect and provide the supporting documents. You will submit this request to the IRS office that conducted the audit.
5. Submit Your Request to the IRS: Once you have prepared the request, submit it to the IRS. Be sure to follow the IRS guidelines for submitting audit reconsideration requests and retain copies of all correspondence for your records.

Benefits of Audit Reconsideration

• Potential for Reduced Tax Liabilities: By presenting new evidence, you may be able to reduce or eliminate the additional taxes assessed during the audit.
• Avoid Formal Appeal Process: Audit reconsideration is an informal process, which may be quicker and less costly than formal appeals.
• Additional Review Opportunity: It provides a second opportunity for the IRS to review your case before the situation escalates to more serious collections or legal actions.

Common Mistakes to Avoid

• Failure to Gather Strong Evidence: Make sure the new evidence you provide is relevant and substantial. If the documents do not support your case, your reconsideration request may be denied.
• Missing Deadlines: There are strict time limits for filing an audit reconsideration request. Be sure to file your request promptly.
• Not Following IRS Instructions: The IRS has specific guidelines for submitting reconsideration requests. Failing to follow these steps can delay the process or result in your request being rejected.

Conclusion

Audit reconsideration offers taxpayers a chance to correct errors or present new information that could reduce tax liabilities. By understanding how the process works and submitting the proper documentation, you increase your chances of having your case reconsidered successfully.

If you need assistance with your audit reconsideration or want expert help in preparing your case, contact us to discuss your options at 832-303-3995 or book your appointment today.