When an IRS audit results in additional tax and you miss the 90-day deadline to petition the U.S. Tax Court, your options to dispute that tax debt narrow dramatically. In such cases, IRS audit reconsideration is often the last resort to challenge an audit result. Audit reconsideration is an informal, discretionary IRS process that allows taxpayers to request a re-evaluation of an audit assessment when more formal appeal rights have expired. At the tax law offices of David W. Klasing, every audit-reconsideration case is handled by a dual-licensed Tax Attorney & CPA who knows the procedural minefields and the evidentiary standards the IRS applies. We’ll confirm you meet the eligibility rules, assemble the facts and documents into a persuasive package, press for collection holds while the request is pending, and preserve any remaining appeal or refund rights—maximizing your last, best chance to correct an audit that went off the rails.
Missing the 90-Day Deadline: Audit Reconsideration as a Last Resort
Under federal tax law, when the IRS issues a Notice of Deficiency (the infamous “90-day letter”), a taxpayer has 90 days (150 days if abroad) to file a petition with the U.S. Tax Court and challenge the proposed deficiency before it is assessed. This deadline is strict – the Tax Court cannot consider a late petition, and the time to file cannot be extended or suspended by any IRS action. The notice itself warns that even if you submit additional information to the IRS, it will not extend the 90-day period for filing a Tax Court case.
If the 90-day petition window closes, the IRS will finalize the assessment and can proceed directly to liens, levies, and other collection measures, effectively closing the door on prepayment review in U.S. Tax Court. At that point, an IRS audit reconsideration request often becomes the lone practical path to challenge an overstated bill without first paying it in full.
Unlike the formal “deficiency” route, where a 30-day letter opens IRS Appeals, a 90-day Notice of Deficiency gives you an automatic right to petition the U.S. Tax Court, and collection is legally frozen until the case ends. Audit reconsideration is purely discretionary, offered by the IRS as a courtesy policy after the statutory deadlines have lapsed. There is no guarantee the IRS will even review your request, no neutral judge, and no built-in stay of liens or levies; collection continues unless the IRS chooses to hold off. Because the same agency that made the original adjustments is re-examining its own work, you forfeit the discovery rights, burden-of-proof rules, and independent adjudication that come with Tax Court litigation. In short, audit reconsideration is typically a “last-chance” remedy—pursued only after you missed the 90-day window or never engaged in the initial audit—not a substitute for the robust protections of the normal Appeals and Tax Court deficiency procedures.
Don’t face the IRS alone. Contact the tax law offices of David W. Klasing to halt enforced collection, marshal new evidence or correct proofs the IRS demands, and press for an abatement that brings the liability back in line with what the law actually requires.
Eligibility and Criteria for IRS Audit Reconsideration
Not every assessed tax is eligible for audit reconsideration. The IRS has specific criteria defining when it will accept an audit reconsideration request. Key eligibility requirements include:
Unpaid Tax Liability
Audit reconsideration is only available if the additional tax assessed as a result of the audit has not been paid in full. If you have already paid the amount due (or if you pay it while awaiting reconsideration), the IRS considers your challenge a refund claim – in that case, you must file an amended return or formal refund claim (e.g., Form 1040X) rather than seek audit reconsideration. Essentially, reconsideration is used to contest unpaid assessments, whereas paid assessments must be pursued through the refund process.
New Information or Documentation
You must have new evidence or information that was not considered in the original audit. Reasserting arguments or facts that the auditor already reviewed (and rejected) will not qualify. The IRS requires something materially new – for example, documents that were not submitted before, records that you recently obtained, or new legal arguments supported by evidence. If you cannot point to new information or a clear IRS error, the IRS can reject the reconsideration request for lacking new facts. (Note: Filing an original tax return to challenge a Substitute for Return (SFR) assessment is considered “new information” by itself, since the IRS prepared the SFR without your return.)
Original IRS Assessment from Audit or SFR
Audit reconsideration is meant to re-evaluate the results of an IRS audit or an SFR assessment. According to IRS guidance, it applies to “a prior audit where additional tax was assessed” or a 6020(b) Substitute for Return prepared by the IRS. If you are contesting a correspondence audit adjustment or an automated underreporter (AUR) assessment, those can also fall under audit reconsideration. The common thread is that there is an existing IRS assessment of tax that you believe is wrong. You generally cannot seek “reconsideration” of a tax you self-reported on an original return (instead, you’d amend the return). It’s a remedy for IRS-initiated assessments.
No Prior Formal Agreement or Final Court Decision
The IRS will not grant audit reconsideration if a formal agreement or final court ruling has established liability. For example, if you signed a closing agreement (Form 906 or Form 866) finalizing your tax liability or accepted an offer in compromise for the amount, those are binding, and audit reconsideration is not an option. Likewise, if the assessment resulted from a Tax Court decision or other court judgment that has become final, the IRS will not reconsider that liability. The same goes for final partnership adjustments under TEFRA (an older partnership audit regime) or an Appeals settlement agreement (Form 870-AD).
One Bite at the Apple (per Issue)
While there is no explicit time limit to request a reconsideration, you can submit a request “anytime after an examination assessment has been made” as long as it’s unpaid – the IRS generally won’t reconsider the same assessment multiple times without new information. If you have already gone through an audit reconsideration once and have attempted to do so again without presenting any new information, the IRS may reject the repeat request. Each issue typically gets one reconsideration opportunity unless you uncover additional evidence later.
Valid Grounds for Requesting an Audit Reconsideration
The IRS and courts recognize several common scenarios in which a taxpayer may seek reconsideration of an audit result:
- Never received the audit mailings – A move or wrong address kept you from seeing the audit letters or 90-day Notice of Deficiency, so you lost the chance to reply.
- Missed or ignored the audit – You knew about the exam but didn’t appear or respond; reconsideration lets you supply the records you withheld.
- New documentation is now available, including receipts, mileage logs, and corrected K-1s, which were identified during the audit and would alter the examiner’s adjustments.
- IRS math or clerical error – The report contains an apparent miscalculation, omitted credit, or payment-posting mistake.
- Substitute for Return (SFR) assessment – You failed to file, and the IRS prepared an SFR; filing the actual return and requesting reconsideration usually reduces the bill.
- The evidence you submitted was overlooked – the proof you previously sent was never included in the audit workpapers. Resubmitting through reconsideration will ensure it is considered.
In all these examples, the common theme is fairness: audit reconsideration is intended to prevent taxpayers from being stuck with an incorrect bill when, for reasons often beyond their control, the usual audit process does not yield the correct result. At the Tax Law Offices of David W. Klasing, our dual-licensed Tax Attorneys & CPAs turn those fairness principles into a well-documented, legally-grounded audit-reconsideration package the IRS is hard-pressed to ignore. We track down missing notices, retrieve or recreate books and records, secure third-party affidavits, and, for SFR cases, prepare the delinquent tax return. We wrap every exhibit in an attorney-privileged brief that cites the relevant IRS Policy Statements and IRM sections, which require the IRS to abate erroneous assessments. In short, we supply the “something new” the IRS demands, while shielding you from ongoing collection and preserving any remaining appeal or refund rights. Call the tax law offices of David W. Klasing at (800) 681-1295 or schedule a confidential, reduced-rate initial consultation today HERE.
How to Request an Audit Reconsideration: Procedure and Documentation
Initiating an audit reconsideration requires a formal request to the IRS; however, there is no standardized form that must be used. The process can be summarized in steps:
Review the Audit Report and Identify Disputed Issues
Start by carefully reading the IRS examination report (Form 4549) and any accompanying schedules that detail the adjustments. Determine which specific items you disagree with and why. It could be particular income amounts, disallowed expenses, filing status issues, etc. For each item, note what evidence or arguments could prove the original decision wrong. Being clear on exactly what you’re contesting will help organize your request.
Gather New Supporting Documentation
Collect all documentation that supports your position on the disputed items. This documentation must be new information not previously considered by the auditor. For example, if the IRS disallowed a charitable deduction because you lacked a receipt, obtain the proper receipt or acknowledgment letter from the charity now. If income was misattributed to you, gather evidence (like a corrected 1099 or proof it was someone else’s income). Ensure each document clearly ties to the tax year in question and to the item you are disputing. Tip: It may help to label the documents or include a list, so the IRS reviewer can easily see what each item is and which issue it relates to.
Write a Clear Request Letter (Cover Letter)
Draft a letter to the IRS explaining that you are requesting an audit reconsideration. In this letter, identify the tax year and assessment you are disputing, and explain in detail each issue you want reconsidered. For each disputed item, state what the original audit determined, and then state what you believe the correct outcome is and reference the new evidence you are providing. The IRS recommends being very clear about “which changes you want us to consider”. If available, you should attach a copy of the exam report (Form 4549) and mark the items you dispute. You may also use Form 12661, Disputed Issue Verification, as a supplemental sheet. This optional form is a convenient way to list each contested issue and the reason. While Form 12661 is not mandatory, it can make your submission more organized. Be sure to include your name, Tax ID number, tax year, and contact information in the letter, and sign it. The tone of the letter should be factual and concise, focusing on the evidence. This letter serves as the cover for your reconsideration package.
Attach Copies of Supporting Documents
Include photocopies of all the relevant documents you gathered (never send originals – the IRS will not return them). For instance, attach bank statements, receipts, invoices, cancelled checks, Forms W-2/1099, loan agreements, mileage logs – whatever evidence is necessary for your case. If you have correspondence or notices from the IRS related to the audit, include those too (especially the Notice of Deficiency or audit report). It helps the IRS reviewer to have the context. Ensure each copy is legible. If you are faxing the documents, include your identifying information (name, SSN/EIN, tax year) on each page in case the pages become separated.
Send the Request to the Appropriate IRS Office
Audit reconsideration requests are generally handled by IRS campus examination or accounts management units that correspond to where your original audit was processed. Publication 3598 provides a list of IRS campus addresses for submitting reconsideration requests. Typically, you should send your request to the address on the examination report or letter you received. If the office information is unclear, you can call the IRS’s general line or the specific campus numbers provided to obtain the correct mailing address. It’s wise to send the package by certified mail or another traceable delivery method, so you have proof that it was sent and received. Keep a complete copy of everything you send for your records.
Timing
There is no specific deadline to file an audit reconsideration – as the IRS notes, you can request it “anytime” after the assessment is made, as long as the tax remains unpaid. However, the sooner you file after learning of the issue, the better. Interest and penalties continue to accrue on the unpaid tax during the process. Also, if you delay too long, it’s possible that records get harder to find or the IRS may be further along in collection (which could necessitate other actions to stop enforcement). Ideally, submit your reconsideration request promptly after you realize you need to dispute the audit result (for example, right after a defaulted audit or after discovering new evidence).
Follow-up and IRS Contact
After sending the request, the IRS states that you should hear something (an acknowledgment or response) within about 30 days of submission. Often, the IRS will send a letter confirming they received your package and are assigning it for review. If the IRS requires more information or identifies a missing document, it will contact you (by letter or phone) to request additional documentation. It’s essential to respond promptly (usually within 30 days) to any IRS requests during the reconsideration process, as failure to do so may result in the case being closed and collection resumed. Ensure the IRS has your current address and phone number so they can contact you easily.
What to Expect from the Audit Reconsideration Process
Once your package arrives, the IRS screens it for basics (signature, unpaid balance, new evidence). If anything is off, they’ll kick it back; otherwise, the file moves to a campus examiner or sometimes the original field office. Expect an acknowledgment in approximately 30 days, but a complete review can take several months, with longer processing times for complex cases.
If the examiner needs more proof, you’ll get a letter (or occasional phone call) spelling out precisely what’s missing. Respond quickly and completely; silence or thin documentation almost guarantees that the original assessment will stand, and enforced collection can be restarted after 30 days.
During reconsideration, the IRS usually—though not by law—halts new levies on the disputed amount. Continue making payments under your existing installment plan to avoid default. The examiner re-evaluates each contested item separately and can grant full, partial, or no relief. When the review finishes, you’ll receive a determination letter.
If your reconsideration is dragging on—especially if collections are causing hardship—contact the tax law offices of David W. Klasing. We can prepare and submit a Form 911 request to the Taxpayer Advocate Service to seek expedited relief.
The Discretionary Nature of Audit Reconsideration (and Why That Matters)
Audit reconsideration exists only because the IRS chooses to offer it, not because Congress guaranteed it. The Internal Revenue Code gives the IRS broad power to “abate the unpaid portion of any tax … assessed erroneously or illegally” (IRC § 6404(a)); all program details flow from internal policy. That discretion lets IRS employees refuse or halt a request whenever statutory or procedural bars appear—no new evidence, a prior reconsideration already performed, a signed closing agreement, a final court decision, an obviously frivolous argument, an amended return filed after the refund-limitation period, or your failure to answer follow-up questions. Because refusal to reconsider is not a “determination” reviewable by any court, your only judicial path is to pay the tax and sue for a refund. Nor does an audit-reconsideration filing stop interest, penalties, or the 10-year collection statute: Collections may pause as a courtesy, but the IRS can resume enforcement if your submission stalls. The upside is that the agency’s goal is still to “get the tax right,” and solid, well-documented evidence often persuades them to abate erroneous assessments. Still, success hinges entirely on the strength and completeness of the package you present.
Transform Your “Last-Chance” Audit Reconsideration into a Winning Strategy with the Tax Law Offices of David W. Klasing
When the IRS finishes its review, it will send a letter showing one of three results. (1) Full abatement: Every contested item is removed, and the tax, penalties, and related interest disappear. (2) Partial relief: some issues are fixed, others aren’t, leaving a reduced balance. (3) No change: the IRS upholds the original audit. If you accept the outcome, you simply pay or arrange payment. If you disagree, you still have tools: you can request a conference with the IRS Independent Office of Appeals, pay the balance and file a refund claim (opening the door to sue in U.S. District Court or the Court of Federal Claims), or—where collections have begun but you never received the Statutory Notice—raise the liability in a Collections Due Process hearing. As-to liability, an Offer in Compromise is a rarer, last-ditch option once reconsideration and Appeals are exhausted. Ignore the letter, and the IRS will resume liens, levies, and other enforcement.
At the tax law offices of David W. Klasing, every reconsideration is engineered by a dual-licensed Tax Attorney & CPA who speaks the IRS’s two critical languages: the accounting detail that proves the dollars and the legal authority that compels abatement. Here is what our team brings to the table:
- Up-front triage and strategy. We confirm that audit reconsideration is your best (or only) remaining remedy. We will rule out faster relief, such as a Petition to Tax Court via CDP or refund litigation, and verify that you meet every IRS eligibility benchmark before a single page is drafted.
- Forensic reconstruction of the record. Our dual-licensed Attorney-CPAs rebuild the numbers the examiner got wrong—correcting SFR income overstatements, restoring disallowed deductions, and tracing payments the IRS overlooked—while our attorneys craft a plain-English narrative that walks the reviewer issue-by-issue through the new evidence.
- Bullet-proof submission. We draft a persuasive cover letter (or Form 12661) that cites controlling statutes, regulations, and IRM provisions; index and label every document; and file the package with the exact IRS campus or field office that owns your account, by certified mail, return receipt.
- Collection shields while the IRS deliberates. Where appropriate, we negotiate holds on levies and liens, or secure Taxpayer Advocate intervention, so enforced collection doesn’t steamroll you while the reconsideration is pending.
- Relentless follow-through. We track the case, respond to every IRS request within days—not weeks—and push for written confirmation of a full or partial abatement. If the IRS denies relief or grants only token concessions, we immediately pivot to the next level: an Appeals conference, a properly timed refund claim, or an Offer in Compromise based on doubt as to liability.
- Litigation-ready backup plan. Because we litigate in U.S. District Court, the Court of Federal Claims, and (when preserved) the Tax Court, the IRS knows our protest letters are not idle threats—often prompting a realistic settlement before court becomes necessary.
The bottom line: audit reconsideration is your last, best opportunity to erase an unjust assessment without paying first. Don’t risk that chance on an incomplete package or a “do-it-yourself” letter that lands in the IRS rejection pile.
Call the tax law offices of David W. Klasing at (800) 681-1295, or schedule a confidential, reduced-rate initial consultation HERE. Let our dual-credentialed team convert audit reconsideration from a long-shot lifeline into a strategic, evidence-driven victory—and put an end to the IRS nightmare before it costs you another dollar in tax, penalties, or interest.
