Audit reconsideration process for correspondence examination (audits by mail)

The IRS audit reconsideration process allows taxpayers to request a reevaluation of an audit assessment when your credits were disallowed, you disagree with the findings and the tax liability remains unpaid, or the IRS made a processing or computational error.

It's an opportunity to provide new information not previously considered by the IRS auditor to support your position and potentially reduce or eliminate the tax liability.

Reasons to Request Audit Reconsideration

• You did not appear for your original audit or provide requested information.
• You moved and did not receive correspondence from the IRS.
• You have new information that was not available or provided during the initial audit.
• You disagree with the IRS's assessment based on the audit findings.

How to Request an Audit Reconsideration

1. Review your audit report, Form 4549, Report of Income Tax Examination Changes, to identify the specific items you disagree with.
2. Gather supporting documentation. Collect copies of any new or previously unsubmitted documents (e.g., receipts, bank statements, canceled checks, Form 1099s) that support your claim. Only submit copies, as the IRS will not return original documents.
3. Prepare your request by doing either of the following:

• Write a letter explaining each issue or adjustment you disagree with.
• Complete IRS Form 12661 PDF, Disputed Issue Verification to help clarify the issues or adjustments you're disputing.

Submit your request as follows:

• Submit your documents using the Document Upload Tool (DUT) at irs.gov/examreply (recommended).
• Mail your letter and supporting documents (along with Form 12661 if used and a copy of Form 4549, if available) to the IRS office that handled your audit. You can find the address on your audit letter. If you don't have the letter or need to confirm the address, you can call 866-897-0161 or 866-897-0177.

Be sure to keep copies of everything and maintain copies of all documents you send to the IRS and consider using certified mail for proof of delivery.

Important Things to Remember

1. New information is key. The IRS focuses on information they haven't previously considered.
2. You can only request audit reconsideration if the assessed tax liability remains unpaid. If you've already paid the tax, you'll need to file an amended return (Form 1040X) to claim a refund.
3. The IRS estimates a 30-day response time, but it may take longer, potentially several months. You can check the status online if you have an online account. You may also call the contact number on your letter. If there's a significant delay, you can request assistance from the Taxpayer Advocate Service (TAS).
4. If the IRS denies your request or you disagree with their decision, you can request an Appeals Conference to further dispute the matter. Alternatively, you can pay the tax and file a refund claim in court.