If the IRS has completed an audit and you disagree with the result, you may still have a way to ask the agency to review the case. Audit reconsideration can give eligible taxpayers an opportunity to present information the IRS did not previously consider or explain why the assessment should be changed.
This process can be especially important if you did not respond to the original audit, missed the opportunity to provide records, or later found documents that support your tax return.
Gabaie & Associates represents individuals and businesses in Frederick seeking audit reconsideration and challenging IRS tax assessments. The firm can review what happened during the original examination, evaluate the records available now, and help determine whether reconsideration may be appropriate.
If you want the IRS to reconsider an audit decision in Frederick, call Gabaie & Associates at (410) 358-1500 or contact the firm online to discuss your situation.
What Is IRS Audit Reconsideration?
Audit reconsideration is an IRS process that may allow the agency to review an audit assessment again after an examination has been completed.
It can be useful when the taxpayer has additional information that was not considered during the original audit. It may also apply when the taxpayer did not respond to the original examination or did not have a full opportunity to present records supporting the return.
The purpose is not simply to ask the IRS to change its mind. You generally need to provide information or circumstances that give the IRS a reason to reconsider the assessment.
For example, you may have records showing that a business expense was deductible, documentation supporting a claimed credit, or evidence that income was reported correctly. If those records were not available during the original examination, they may be relevant to a reconsideration request.
When Can I Request Audit Reconsideration?
Audit reconsideration may be an option when the IRS has already assessed additional tax, but there are unresolved issues with the examination.
Circumstances that may support reconsideration include:
- You did not respond to the original audit notice
- You did not provide records requested during the examination
- You have new documentation supporting your tax return
- The IRS did not consider available information
- You disagree with the adjustments made during the audit
- You have evidence that the IRS’s assessment is incorrect
- You filed an amended return that addresses the issues involved
The IRS considers the circumstances of each case. Audit reconsideration is not necessarily available in every situation, particularly when another appeal or court process is already addressing the same liability.
That makes it important to understand what happened during the original audit and what options remain before submitting a request.
How Is Audit Reconsideration Different From an Appeal?
Audit reconsideration and an IRS appeal are related but distinct ways of challenging an IRS decision.
An appeal generally involves asking the IRS Independent Office of Appeals to review a disputed tax matter. Audit reconsideration, by contrast, is generally handled through the IRS examination process and focuses on having the assessment reviewed again based on information or circumstances that warrant reconsideration.
The distinction matters because the available process can depend on where your case stands. A taxpayer who has just received proposed audit adjustments may have different options from someone whose tax has already been assessed after an examination.
If you have received a notice explaining appeal rights, you should pay close attention to the deadline. Requesting reconsideration is not necessarily a substitute for preserving other appeal rights.
What If I Never Responded to the Original Audit?
Failing to respond to an IRS audit does not necessarily mean you have no options.
If the IRS completed the examination without receiving information from you, it may have made adjustments based on the records available to the agency. You may later discover that the assessment does not reflect your actual tax situation.
Audit reconsideration may provide a way to present records that were not submitted during the original examination.
For example, a business owner who did not respond to an audit may later provide receipts, bank records, or other documentation supporting expenses that the IRS previously disallowed. Whether the IRS will reconsider the assessment depends on the circumstances and the information provided.
If you did not respond to the original audit, review the assessment and any later IRS notices before deciding how to proceed. Other deadlines or collection actions may also be involved.
Can New Evidence Change an IRS Audit Result?
It can. New or previously unconsidered evidence may give the IRS a basis to change an audit assessment.
The strength of a reconsideration request depends in part on the records available and how clearly they address the adjustments. For instance, documentation showing that income was already reported or that an expense was connected to a business activity may help support a revised tax position.
A reconsideration request should focus on the specific issues that led to the assessment. Providing a large volume of unrelated records may not help if the connection to the disputed adjustments is unclear.
If the IRS agrees with your position, the assessment may be reduced or otherwise corrected. If the agency does not change its determination, other appeal or collection options may still be available depending on the status of your case.
What If the IRS Has Already Assessed Additional Tax?
Audit reconsideration can be relevant even after the IRS has assessed additional tax following an examination. An assessment means the IRS has formally recorded the additional tax as a liability on your account. At that point, the issue may be more than simply responding to an auditor’s questions.
If you believe the assessment is based on incomplete information or incorrect adjustments, review the notice and audit records carefully. You may need to address the specific changes made by the IRS and provide documentation showing why those changes should be reversed or reduced.
It is also important to consider whether the IRS has begun collection activity on the assessed balance. A taxpayer may be dealing with both an unresolved audit dispute and an outstanding tax liability. Depending on the circumstances, you may need to address the assessment while also considering available collection options.
Because different deadlines and procedures can apply at different stages, understanding the current status of your IRS account is an important part of deciding how to proceed.
When Should I Request Audit Reconsideration?
Audit reconsideration may be appropriate when the IRS has already completed an examination, but you have not had a meaningful opportunity to present information supporting your tax return.
For example, you may have received an audit notice while dealing with another significant issue and failed to respond. The IRS could then make changes based on the information available to it. If you later locate receipts, business records, payment documentation, or other evidence supporting your return, reconsideration may provide a way to present that information.
It may also be worth considering when you believe the IRS overlooked information you previously provided or misunderstood a transaction.
The timing matters. Once an audit has resulted in an additional tax assessment, interest and penalties may continue to accrue. Promptly determining whether reconsideration is available can help you understand your options before the balance becomes more difficult to resolve.
What Documents Do I Need for Audit Reconsideration?
The documents you need depend on the issues involved in the audit. Your goal should be to provide records that directly support the items the IRS changed.
Depending on your situation, useful documentation may include:
- Tax returns and amended returns
- W-2s, 1099s, and other income records
- Receipts and invoices
- Bank and credit card statements
- Business financial records
- Mileage and travel documentation
- Real estate records
- Investment statements
- Charitable contribution records
- Contracts and other transaction documents
- Proof of payments
- Documentation supporting deductions or credits
Organizing the records by tax year and disputed item can make it easier to explain your position. Keep copies of everything you send to the IRS.
Can an Attorney Help With IRS Audit Reconsideration?
Yes. A tax attorney can review the audit assessment, determine what information may have been missing from the original examination, and help present your position to the IRS.
Gabaie & Associates can assist with matters such as:
- Reviewing the original audit and IRS notices
- Identifying disputed tax adjustments
- Reviewing supporting records
- Preparing documentation for reconsideration
- Communicating with the IRS
- Challenging unsupported audit findings
- Evaluating appeal rights
- Addressing penalties and interest when appropriate
- Discussing collection options if additional tax remains due
The goal is to give the IRS a clear basis for reconsidering the original audit result while protecting your options if the assessment is not resolved.
Do You Need an Audit Reconsideration Attorney in Frederick?
If an IRS audit resulted in additional tax and you believe the agency did not consider important information, Gabaie & Associates can review your case and explain whether audit reconsideration may be appropriate.
The firm represents taxpayers in Frederick and handles IRS audits, appeals, tax disputes, and collection matters. Getting the audit history and supporting documentation reviewed can help determine what steps are available.
Call Gabaie & Associates at (410) 358-1500 or contact the firm online to discuss your audit reconsideration matter.
