What is an IRS Audit Reconsideration Letter?

What is an IRS Audit Reconsideration Letter?

If you’ve been audited by the IRS and disagree with the results or you failed to file a return and want to contest your tax liability as computed by the IRS, the experienced attorneys at Wiggam & Geer can help you request and navigate an audit reconsideration. 

When taxpayers are dissatisfied with the results of an IRS audit or didn’t file a return and then disagree with the tax liability computed by the IRS, they can request an audit reconsideration. Unlike the IRS’s structured appeals process where requests for review by an independent agent are for the most part granted, the audit reconsideration is totally discretionary. The IRS decides when and to whom to grant a reconsideration based on information submitted by the taxpayer.

What’s in an Audit Reconsideration Letter Sample?

In order to request an audit reconsideration, a taxpayer must present evidence not considered in the original audit or a completed delinquent return showing a different result. In addition, the taxpayer should not pay any assessment, and have exhausted all other options for questioning the IRS’s decision, such as filing a petition in Tax Court.

The audit reconsideration letter is basically a cover letter explaining the taxpayer’s request. It is sent to the IRS along with: 

  • A statement detailing the issues the taxpayer disagrees with
  • Copies of supporting documents for the new evidence, such as Forms 1099, bank statements, or canceled checks
  • Copies of letters, audit reports, and any other correspondence that the taxpayer has received from the IRS

The IRS generally suspends any collection efforts while it is considering your request. While penalties and interest still accrue, the agency is in effect giving an extension on debt collection actions.

While it might be tempting to write the cover letter and put together the request package on your own, the discretionary nature of the reconsideration process calls for the expertise of a tax attorney. An experienced attorney can identify pertinent new evidence and make a solid case for reconsidering your audit results or tax assessment based on a Substitute for Return compiled by the IRS.

What is a Response Letter to an IRS Audit? 

A response to an IRS audit letter differs from the request for reconsideration letter. The request for reconsideration letter is asking the IRS to reconsider results of a completed audit or Substitute for Return, whereas an audit response letter is the correspondence you send when you have received an IRS audit letter. An IRS audit letter notifies you that your return has been selected for audit. 

If you receive an IRS audit letter, you should:

  • Respond as soon as possible
  • Definitely respond within 30 days of the letter’s date to avoid penalties
  • Respond by telephone or letter

How to Write an Audit Response Letter

As with the request for reconsideration letter, speaking with an experienced tax attorney to determine your response strategy and write the letter is the best course of action. The letter should:

  • Include taxpayer details such as full name, Social Security Number, and contact information
  • Address each issue noted in the IRS audit letter and why you disagree
  • Request a time and date to meet with the IRS
  • Be accompanied by copies of supporting documents

An audit response letter must be carefully worded to meet the IRS’s specifications. An experienced tax attorney can craft a well-written response letter that accelerates the process and helps reach a quick resolution.

What Happens if You Don’t Respond to an IRS Audit Letter?

If you don’t respond to an IRS audit letter, respond late, send an incomplete response, or respond incorrectly, you will likely receive a tax bill, with penalties and interest, from the IRS. This means the IRS has disallowed the items in question.

If you have received an IRS audit letter, didn’t file your taxes and disagree with the IRS’s computation of your liability, or are dissatisfied with IRS audit results, it’s best to act quickly and hire an experienced tax attorney. Our team of experienced tax attorneys can help you evaluate all your options and represent you. Give us a call today at (404) 609-1300 to get started.

 

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