IRS Audit Reconsideration Attorney
If you were hit with an IRS audit result that feels wrong, you may still have a path to challenge it. Audit reconsideration allows taxpayers to present additional information and request that the IRS review an assessment that should be corrected.
Whether you missed an audit notice, did not fully participate in the examination, now have records that were not previously considered, or believe the IRS assessed too much tax, Todd S. Unger can evaluate your situation and help you determine the best next step.
When an IRS Audit Assessment May Need Another Look
Audit reconsideration provides a way to ask the IRS to reevaluate an examination assessment when important information was not previously considered, the taxpayer did not participate fully in the original audit, credits were disallowed, or the assessment contains an error.
It is not a substitute for every missed appeal, and the IRS is not required to reopen every examination. The assessment status, payment history, prior proceedings, disputed adjustments, and availability of new information should be thoroughly reviewed before preparing a request.
The IRS describes audit reconsideration as a formal process for reevaluating certain audit assessments when new information is available, credits were disallowed, the taxpayer did not fully participate, or a factual error may have occurred.
Understanding IRS Audit Reconsideration
Internal Revenue Code § 6404(a) gives the IRS authority to abate certain assessments, penalties, or interest when an assessment is excessive, made in error, illegally assessed, or made after the applicable period of limitations. Audit reconsideration is one procedure that may allow the IRS to reevaluate a prior audit result when the taxpayer disagrees with the assessment and has information that was not previously considered.
In general, an audit reconsideration request should identify the specific adjustments being disputed and provide additional information tied directly to those disputed items. The request should be carefully prepared because the IRS will review whether the case fits the reconsideration criteria and whether the new information changes the outcome.
Audit reconsideration is highly fact-specific. No single condition guarantees that the IRS will accept the request, reopen the examination, or reduce the assessment.
When Audit Reconsideration May Be Available
Audit reconsideration may be worth evaluating when the original audit result was based on incomplete information, missed participation, unavailable records, or an assessment that appears to contain a factual or processing problem.
| Situation | Why Reconsideration May Be Relevant |
|---|---|
| Taxpayer did not appear for the audit | The IRS may have made adjustments without reviewing the taxpayer’s records. |
| Records were unavailable | New documents may now support deductions, credits, or reported amounts. |
| Notices were missed | The taxpayer may not have participated in the original examination. |
| IRS used incomplete information | New or corrected information may change the assessment. |
| Credit was disallowed | Additional evidence may support the credit claim. |
| Processing or computational problem | The assessment may require correction due to an administrative mistake. |
When Audit Reconsideration May Not Be the Correct Remedy
Audit reconsideration may not be the proper procedure when the disputed assessment has already been fully paid and the taxpayer is seeking a refund, when a final court decision or closing agreement controls the liability, when no new information is available, or when another formal appeal or claim procedure is still open.
A taxpayer who has already paid the assessment may need to evaluate an amended return, refund claim, or other procedure instead of relying solely on audit reconsideration.
What Counts as New Information?
New information does not necessarily mean a document created after the audit. It generally means relevant, substantiating information that was not considered during the original examination.
Examples may include reconstructed records, bank statements, corrected Forms 1099, substantiation for business expenses, proof of basis, dependency documents, receipts, mileage records, contracts, or other evidence tied to the specific disputed adjustment.
The stronger the connection between the evidence and the disputed adjustment, the more useful that information may be in framing the reconsideration request.
Audit Reconsideration and Substitute-for-Return Assessments
Audit reconsideration may arise when the IRS created a return or assessed tax using incomplete information because the taxpayer did not file or did not participate. The appropriate strategy may require filing an accurate original return, identifying the disputed assessment, and providing records the IRS did not previously consider.
Substitute-for-return cases should also be coordinated with the broader filing and collection strategy. Correcting an assessment does not automatically resolve penalties, interest, liens, levies, or payment obligations.
If unfiled returns are part of the issue, review our detailed guide on back taxes and unfiled tax returns.
Our Audit Reconsideration Process
These cases often turn on details, documentation, and timing. A strong reconsideration request usually requires much more than simply telling the IRS the audit was wrong.
We examine what happened during the original audit, the adjustments made, the notices issued, and the opportunities missed.
When appropriate, our firm requests available IRS transcripts, examination reports, administrative records, or portions of the examination file to understand how the assessment was developed.
We pinpoint the specific items that should be challenged and explain why the original result needs correction.
We assemble the legal and factual support needed to request correction or reduction of an assessment when the facts and available procedures support it.
If the IRS requests clarification or additional records, we help evaluate the request and continue advocating within the available administrative channels.
Audit Reconsideration Is Different From an IRS Appeal
A formal administrative appeal generally challenges a proposed examination result within a strict deadline. Audit reconsideration generally asks the IRS to reevaluate an assessment after the original examination process has ended, often because relevant information was not considered.
The available procedure depends on whether the assessment is proposed or final, whether appeal or Tax Court deadlines remain open, whether the balance has been paid, and whether new evidence exists. For help during an active audit, review our IRS audit representation page.
Audit Reconsideration and IRS Collection Activity
Requesting audit reconsideration does not mean collection action will automatically stop. If the taxpayer is facing a levy, lien, wage garnishment, or Collection Due Process deadline, the collection issue must be addressed separately and promptly.
If the IRS has sent a final collection notice, review our page on Collection Due Process hearings. If wages or bank accounts are at risk, review our page on IRS levies and wage garnishment.
Why Legal Representation Matters
Legal counsel can help determine whether audit reconsideration is the appropriate procedure, identify the specific adjustments being disputed, organize supporting evidence, and present the request in a clear legal and factual framework.
Every case depends on its facts, prior IRS history, procedural posture, and the quality of the information being submitted.
Do Not Assume the Audit Result Is Final
If the IRS assessed too much tax and you now have the information needed to challenge it, this may be the right time to review your options.
Reach Out for Guidance
With an extensive track record of managing complex tax controversies, New Jersey tax attorney Todd S. Unger helps individuals and businesses evaluate audit assessments, organize supporting records, and determine whether audit reconsideration, an appeal, a refund procedure, or another remedy is the appropriate next step.
Call now for direct legal guidance reviewing your IRS audit assessment: (877) 544-4743
Related Tax Services
Frequently Asked Questions
Here are answers to common questions taxpayers ask about IRS audit reconsideration.
Review the Audit Assessment Before Choosing a Procedure
If an IRS audit assessment was based on missing, incomplete, or incorrect information, gather your examination report, notices, and supporting records. Todd S. Unger can help determine the appropriate legal path forward.