Audit Reconsideration
You can lose the audit, or be faced with an IRS prepared tax return (called a substitute return), fail to timely appeal the result(s) and you still may be able to have the debt “reconsidered.”
The most common type of Audit reconsideration is the creation and filing of a correct tax return to “challenge” an IRS created or “substitute” return. The taxpayer may also simply request an audit result to be considered as well.
Whether the audit reconsideration request is made as a result of a failed audit or as a correct taxpayer return filing, it is NOT a matter of right i.e. you don’t have the right to file the tax return challenge or request that the audit finding be changed, if you missed your appeal deadline and are filing the reconsideration request.
IRS auditors are trying to increase your debt, but IRS audit reconsiderations go to the IRS appeals office whose job description is to try and deal with the case as cleanly and painlessly as is possible. These appeals officers have a broadened discretion and flexibility. Therefore if issues are unclear, the result may be in your favor.
A freedom of information act request can result in the IRS providing the auditor’s file. This can tip you off to what the auditor was thinking during the audit, and will make it easier to attack the items lost in the reconsideration process.
A tax attorney can help to organize and clearly argue the legal issues in the reconsideration setting especially with an appeals officer and can focus on the facts that would help you to win.
If you have a substitute return issue or have long since “lost” an audit, you may still have this option. You can call to discuss your situation with us or visit our blog to learn more.
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