First, review the report and attachments from the audit to figure out which items you think are incorrect. You may have to get a copy of the report from the IRS.
You can hire an attorney, certified public accountant (CPA), or enrolled agent to represent you before the IRS. You may be eligible for free representation (or representation for a nominal fee) through a Low Income Taxpayer Clinic.
Gather documentation to support your position.
- Make sure the documentation is new information that wasn’t part of the original audit, and that it’s for the tax year the IRS audited.
Send your request for audit reconsideration to the office that last corresponded with you.
You don’t need to complete a special form – just a letter explaining your request for audit reconsideration. Be clear about which changes you want the IRS to consider. You should provide:
- A copy of your examination report (IRS Form 4549), if available
- Copies of the new documentation that supports your position. Do not send original documents. Send copies.
NOTE: If you’re in an installment agreement, keep making payments during the reconsideration process.
Watch for a response from the IRS
You should expect to hear from the IRS about your reconsideration request within 30 days. The IRS will send you a letter if it needs more information.
You’ll be notified once the IRS reviews all your information. The IRS may:
- Accept your information and abate (remove) the tax it previously assessed
- Accept your information in part and partially reduce the tax
- Find that your information didn’t support your claim and the prior assessment stands
If you agree with the results of the reconsideration, pay the remaining balance you owe, if any. If you can’t pay in full, you have payment options to consider.
If you disagree with the results of the reconsideration, you can request a conference with the Office of Appeals. You can be represented by an attorney, CPA, or enrolled agent at this conference.
You can also pay the balance due in full and then file a claim for refund with an Amended Return (IRS Form 1040X, Amended U.S. Individual Income Tax Return).