If you missed an IRS audit—or lost one—you’re not out of options. The IRS has a formal process called Audit Reconsideration, which allows taxpayers to reopen and correct an audit assessment when new information, documentation, or errors exist. This process can reverse tax assessments, remove penalties, and restore refunds — even years after the original audit closed. However, audit reconsideration is not automatic. It’s a strategic legal process that requires evidence, precision, and a solid understanding of IRS procedure.
📘 Official IRS References:
- Publication 556 — Examination of Returns, Appeal Rights, and Claims for Refund
- What You Should Know About the Audit Reconsideration Process
What Is Audit Reconsideration?
Audit reconsideration is an IRS administrative process allowing taxpayers to request a review of a previously closed audit when new evidence or errors exist.
It’s primarily used when:
- You didn’t attend the original audit.
- The IRS assessed additional tax that you disagree with.
- You have new records to support your position.
- The IRS made a factual or clerical mistake.
When You Can Request Audit Reconsideration?
You can request audit reconsideration when:
- You have new, relevant information: You have supporting documentation, such as receipts, invoices, or bank statements, that was not available or was not considered during the initial audit.
- You missed the original audit: This could be because you didn’t receive correspondence from the IRS after moving, or you were unable to appear for the audit appointment.
- The IRS made an error: You believe the IRS made a computational or processing error when assessing your tax liability.
- You disagree with the assessment: This can include an assessment made from an original audit or from a Substitute for Return (SFR), which is filed by the IRS when a taxpayer fails to file.
Example of Some Common Scenarios for Audit Reconsideration
The following are examples of some common scenarios for audit reconsideration:
| Scenario | What Happened | Why Reconsideration Applies |
|---|---|---|
| Missed IRS audit notice | You never responded to IRS letters | You can now provide documentation that wasn’t reviewed |
| Audit adjustments were incorrect | IRS disallowed legitimate expenses | You can submit missing receipts or logs |
| New evidence discovered | You found proof of income/exemption accuracy | IRS reopens audit to review new documents |
| IRS made clerical error | Transposed figures or wrong totals | Correction through reconsideration |
Audit Reconsideration vs. Appeal
There are differences between audit reconsideration and an appeal after an IRS audit.
| Feature | Audit Reconsideration | IRS Appeal |
|---|---|---|
| Timing | Available only after an audit is completed and the additional tax has been assessed and remains unpaid. | Available after an initial IRS examination or collection action, but before you have signed an agreement form. |
| Purpose | To ask the IRS to reevaluate a tax assessment if new information is available, you missed the original audit, or there was a computational error. | To resolve a tax dispute with the IRS without going to tax court. |
| New evidence | Required. You must submit new or previously unconsidered information to support your position. | Not required. Appeals are based on the existing record, though they consider the “hazards of litigation”. |
| Level of Review | Reevaluated by an auditor, who may be the same person who handled the original audit. | Reviewed by an independent Appeals Officer who is separate from the IRS division that made the initial determination. |
| Court Review? | No. If denied or you disagree with the result, you can request an Appeals conference. | Yes. If the appeal is unsuccessful, you can take your case to U.S. Tax Court. |
Step-by-Step: How to Request Audit Reconsideration
Step 1: Identify the Tax Year
Identify which year and assessment the reconsideration applies to.
💡Tip: Always confirm that your case is still within the IRS collection statute (10 years) before requesting reconsideration.
Step 2: Obtain and Organize Supporting Documentation
The IRS will not reconsider based on claims alone — you must provide evidence that changes the outcome. Examples include:
- Receipts, invoices, and contracts
- Bank statements and payment records
- Canceled checks or proof of deductions
- Mileage logs or travel records
- Corrected Forms W-2 or 1099
💡Insight: The IRS generally prefers copies, not originals. Always label and index your documentation to mirror your original return line items.
Step 3: Draft Your Audit Reconsideration Request Letter
Your letter should include:
- Your name, address, and taxpayer identification number
- The tax year(s) under reconsideration
- A clear statement that you are requesting “Audit Reconsideration”
- An explanation of why you disagree with the IRS decision
- A list of new documentation enclosed
- Signature and date
📘 Reference: Publication 3598 — How to Prepare Your Request
Step 4: Mail Your Request to the Correct IRS Office
Send your reconsideration request and documentation to the IRS office listed on your examination or audit letter. Always send by Certified Mail, Return Receipt Requested for proof of submission.
💡 Tip: Keep a complete digital and paper copy of your entire package — including mailing receipts — for defense documentation.
Step 5: Wait for IRS Review and Response
The IRS typically acknowledges your request. During review, the IRS may:
- Request additional documentation
- Schedule an interview
- Issue a partial or full adjustment
Legal Rights During Reconsideration
You retain the same Taxpayer Bill of Rights (TBOR) protections as in any other IRS process:
- Right to challenge the IRS’s position and be heard
- Right to appeal an IRS decision in an independent forum
- Right to representation
- Right to finality
💡Tip: An experienced tax lawyer ensures all communications go through counsel — protecting you from inadvertent statements that might harm your case.
📘 Reference: Publication 1 — Your Rights as a Taxpayer
How a Tax Attorney Helps in Audit Reconsideration?
A tax attorney can help in an audit reconsideration.
| Attorney Function | Purpose | Result |
|---|---|---|
| Case transcript review | Identify what triggered IRS assessment | Build factual defense |
| Evidence compilation | Gather and organize proof to meet IRS standards | Stronger documentation |
| Request drafting | Legal arguments under IRC and IRM | Increases approval likelihood |
| Communication management | Handle all contact with IRS examiners | Prevent misstatements |
| Negotiation and follow-up | Pursue partial settlements or penalty relief | Faster resolution |
📘 Reference: Form 2848 – Power of Attorney
Audit Reconsideration Is Your Second Chance at Fairness
If you missed your audit or lost one unfairly, audit reconsideration gives you another opportunity to present your case — and possibly erase tax debts or penalties that shouldn’t exist. Handled properly, this process can turn an overwhelming IRS bill into a manageable or even zero balance.
Contact Pelham PLLC today to schedule a confidential audit reconsideration consultation. Our experienced tax attorneys will:
- Review your audit transcripts and prior notices
- Prepare and file your reconsideration request
- Handle all IRS communications on your behalf
- Negotiate penalty relief or adjustments
- Ensure your rights are protected at every step
Don’t let an old IRS audit haunt you — reopen your case, correct the record, and take control of your tax future.
FAQs
What’s the deadline to file audit reconsideration?
There is no strict deadline, but the sooner, the better. The IRS will not review cases after the 10-year collection statute expires.
Can I stop IRS collections while reconsideration is pending?
Yes. You can request collection hold status while the IRS reviews your case.
Do I need a tax attorney?
Not legally required, but highly recommended — attorneys ensure compliance with IRM standards and protect your rights during communication.
