Reconsideration of an IRS Tax Audit: A Second Chance with Former IRS Agents

Reopen Your IRS Audit and Potentially Reduce Your Tax Obligation Navigating the intricacies of an IRS audit can be challenging, especially if you disagree with the results. At Clarity Tax Resolutions, we leverage our extensive experience, including over 60 years working directly with the IRS, to help you reopen your audit and possibly lower your tax obligation.

Understanding IRS Tax Audit Reconsideration

  • Missed Audit Appointment: If you missed the audit appointment.
  • Missed Correspondence: If you moved and did not receive IRS correspondence.
  • Disagreement with Audit: If you disagree with the initial tax audit assessment.

If your tax return was prepared by the IRS under IRC Section 6020(b), you can request a tax audit reconsideration. You may also qualify if you were denied tax credits, such as the Earned Income Tax Credit (EITC), during a prior examination.

Criteria for Reconsideration

To request an IRS Tax Audit Reconsideration, you must:

  • Have filed a tax return.
  • Have an unpaid assessment or be disputing reversed tax credits.
  • Identify the adjustments you are disputing.
  • Provide additional information not considered during the original examination.

Required Documentation

When requesting reconsideration, include:

  • All pertinent information related to the issue.
  • Information not considered during the original audit.
  • Copies of letters and reports received if the case is not on the Report Generation System (RGS).
  • Copies of documents previously submitted.
  • An amended return, if applicable.

IRS Authority to Accept Reconsideration

The IRS has the discretionary authority to abate any tax assessment that exceeds the taxpayer’s liability, as per IRC Section 6404(a).

When Requests for Reconsideration Are Granted

A request for reconsideration will be granted if:

  • The taxpayer provides new information that, if considered, would change the assessment.
  • An original delinquent return is filed after an assessment was made due to a return executed by the IRS under IRC Section 6020(b) or other substitute for return procedures.
  • There was an IRS computational or processing error in assessing the tax.

When Requests for Reconsideration Are Turned Down

Reconsideration requests will not be considered if:

  • The taxpayer has already been granted an audit reconsideration and has not provided new information that could change the audit results.
  • The assessment resulted from a compromise under IRC Section 7122, which is final and conclusive.
  • The assessment was made following final TEFRA administrative proceedings.
  • The taxpayer entered into an agreement on Form 870-AD.
  • A decision has been made on the merits by the U.S. Tax Court, a District Court, or the U.S. Court of Federal Claims.

Important Considerations

  • Requests for reconsideration of cases settled by Tax Court, District Court, or Court of Federal Claims should be forwarded to the Office of the Associate Area Counsel.
  • Dismissals for lack of jurisdiction by Tax Court, District Court, or the U.S. Court of Federal Claims are not considered dismissals on the merits.

Why Choose Clarity Tax Resolutions?

  • Expertise: Our team includes former IRS agents, CPAs, and tax attorneys with over 206 years of combined professional experience.
  • Comprehensive Service: We manage your case from start to finish.
  • Client-Centered Solutions: We prioritize your financial stability, offering reasonable and practical tax relief options.

Speak with Us Today

If you’re facing an IRS tax audit and believe reconsideration is the right step, contact Clarity Tax Resolutions. Our knowledgeable team is here to help you navigate the complexities of tax law and safeguard your financial future.