What is an Audit Reconsideration?
The IRS doesn’t always get it right during their audits. If you have been notified that your tax returns for a previous year have been audited, or have undergone a personal audit and received an unfavorable ruling, you have the right to challenge the finding through a formal process known as an audit reconsideration. They do not have to accept these arguments, so it is important to have a good legal argument prepared by a tax lawyer.
If successful, the tax liability will be adjusted accordingly by the IRS. A taxpayer may request that the matter be sent (back) to the examination function for a redetermination of the liability, even after receiving a collection notice. This is accomplished by simply making a written request to the service employee handling the matter, indicating that one of the circumstances for doing so applies. It should be mentioned that the IRS is not required to suspend collection activity while the audit reconsideration is approved, so often an installment agreement must be made until the matter can be resolved.
If you are a resident of King County, Pierce County or Snohomish County, Washington, and need to appeal an IRS tax audit, talk to a tax attorney at Insight Law. For years, we have been helping taxpayers find effective solutions to serious tax problems.
The circumstances for audit reconsideration include but are not limited to:
- The liability has not been finally determined by means of a closing agreement, court decision, OIC, etc.
- The taxpayer requests in writing that an assessment be abated based upon information not previously considered, which, if timely submitted, would have resulted in a change in the assessment.
- There was a service computational or processing error in adjusting the tax.
- The taxpayer never received notification of a balance of unpaid tax due prior to action by the collection function.
- The taxpayer did not appear for the audit or examination of his or her return.
- The taxpayer filed a delinquent return after the service filed a Substitute for Return per section 6020(b).
- The taxpayer moved since filing the return that gave rise to the delinquency and never received the statutory notice of deficiency.
- If the delinquent tax derives from a failure by the taxpayer to substantiate deductions, he or she never had the opportunity to submit the necessary substantiation and he or she now has the necessary documents.
If the revenue officer returns the matter to the examination division, the service will sometimes suspend further collection activity while the matter is under consideration, but they are under no legal obligation to do so. If the examination function determines that the underlying tax should be adjusted, the collection officer will take whatever action is required.
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From offices in Seattle, Bellevue and Burien, our tax lawyers advise and represent clients in communities throughout King County, Pierce County and Snohomish County, Washington. Call us at or contact our office by e-mail to arrange an initial consultation with an experienced Seattle IRS audit reconsideration lawyer at our firm today.