Audit reconsideration is an IRS process for people who disagree with the result of an audit that is already closed. It lets you send information the IRS never saw and ask it to reduce or remove the extra tax. It is not a formal appeal and it does not reset any court deadlines, but it can be the right tool when a bill came from an audit you missed or could not fully answer. If the tax is still unpaid and you have real proof, it is worth trying.
What audit reconsideration is
IRS Publication 3598 describes audit reconsideration as a process the IRS uses "to help you when you disagree with the results of an IRS audit." It also applies when the IRS prepared a return for you because you did not file. That kind of return is often called a substitute for return. The IRS reviews your new information, item by item, and decides whether to change the assessment.
When you can ask for it
According to Publication 3598, you may request audit reconsideration if:
- You did not go to the audit or did not answer the audit letters.
- You moved and did not get the IRS's mail.
- You have information you did not give during the audit.
- You disagree with the assessment from the audit.
The IRS says it will generally consider a request when you send information it has not seen before, when you file your own original return after it made one for you, or when you believe it made a computation or processing error. The publication's FAQ says a request can be made any time after the audit assessment, as long as the tax remains unpaid.
When you can't use it
Publication 3598 lists situations where audit reconsideration is not available:
- You signed an agreement settling the tax, such as Form 906 (closing agreement), a compromise agreement, or Form 870-AD with IRS Appeals.
- A court has made a final decision about the tax, including the U.S. Tax Court.
- The tax comes from final partnership adjustments under the old TEFRA partnership rules.
- You already paid the tax in full. In that case, the IRS says you must file a formal claim for refund. For individuals, that means Form 1040-X, within the refund time limits.
Audit reconsideration does not stop the clock on a Tax Court petition. If you have a Statutory Notice of Deficiency, such as a CP3219A, and the 90-day window is still open, a Tax Court petition is usually the stronger option. Talk to a tax professional before the deadline passes.
Audit reconsideration vs. other options
| Situation | Usual tool |
|---|---|
| Audit is open and you disagree with the auditor | Talk to the manager, ask for mediation, or appeal (see IRS audits) |
| You got a 90-day Statutory Notice of Deficiency and the window is open | Petition the U.S. Tax Court |
| Audit is closed, tax is unpaid, you have new information | Audit reconsideration |
| IRS made a return for you after you did not file | File your own return; audit reconsideration covers this |
| You already paid the tax in full | File a refund claim on Form 1040-X |
| You agree you owe but cannot pay | Payment plan or offer in compromise |
What to send
Publication 3598 asks for a complete package. A clear, organized request is easier to approve.
- Get a copy of your exam report. This is usually Form 4549 or the report that came with your audit letters. If you lost it, call the number on your most recent notice. Your account transcript also shows the assessment.
- List each item you disagree with. For example, "Schedule C car expenses, $6,200, disallowed." Treat each one separately. The IRS reviews each issue on its own.
- Gather proof for each item. Receipts, invoices, bank and card statements, mileage logs, school records, custody papers for dependents, and similar documents. Send photocopies. The IRS asks you not to send originals.
- Fill out Form 12661, Disputed Issue Verification. The IRS calls it "recommended" but not required. It helps you lay out each disputed item.
- Write a short cover letter. Say you are requesting audit reconsideration, name the tax year, and explain why the IRS did not have this information before (for example, you moved and never got the letters). List the documents you are enclosing.
- Add your contact details. Include a daytime and evening phone number and the best time to reach you. If you fax, put your Social Security number (or other taxpayer ID) and the tax year on every page.
- Send it to the right place and keep copies. Use the address of the IRS campus on your exam report, and send by a trackable method.
Publication 3598 lists IRS campuses in Andover, Atlanta, Austin, Brookhaven, Cincinnati, Fresno, Kansas City, Memphis, Ogden and Philadelphia. If your report shows a different office, the publication gives two toll-free numbers to get the right address: 1-866-897-0177 and 1-866-897-0161.
If the IRS made a return for you after you did not file, your strongest move is usually to file your own complete, signed original return for that year, with proof of the deductions and credits you are claiming. Our guide to unfiled tax returns explains how to rebuild missing years.
What happens after you send it
- The IRS may pause collection on the disputed amount while it reviews your documents, according to Publication 3598. This is not guaranteed.
- It may ask for more information. If you do not answer a request within 30 calendar days, the publication says collection may resume.
- You should expect to hear from the IRS about your request within 30 days after you submit it, per the publication. A final answer can take longer if the IRS needs more from you.
- If you have a payment plan, keep paying. The publication says you must keep making installment payments during the review.
The IRS may fully remove the extra tax, partly reduce it, or leave it as is if your documents do not support your position.
If the IRS says no
Publication 3598 describes three choices if you disagree with the reconsideration result:
- Ask for an Appeals conference. The IRS Independent Office of Appeals is separate from the office that reviewed your request.
- Pay in full and file a refund claim on Form 1040-X. If that claim is denied, you may be able to take the case to court.
- Do nothing. The IRS will keep billing you, and normal collection continues.
If you agree with the final amount but cannot pay it, look at a payment plan, an offer in compromise, or currently not collectible status. Collection steps like a federal tax lien or a levy can continue while you sort this out, so keep an eye on your mail.
Getting help
The Taxpayer Advocate Service, an independent office within the IRS, may help if the IRS is not responding or if collection is causing financial hardship. Its toll-free number is 1-877-777-4778. A Low Income Taxpayer Clinic, a CPA, an enrolled agent or a tax attorney can help you build the request. An optional audit reconsideration kit is available on this site, but the steps above are enough to file a complete request on your own.
Frequently asked questions
Is there a deadline for audit reconsideration?
Publication 3598 does not set a fixed deadline. Its FAQ says you can ask any time after the audit assessment while the tax is unpaid. In practice, sooner is better. Records get harder to find, and collection continues in the meantime.
Do I have to pay the tax before asking?
No. In fact, the tax generally must be unpaid. If you already paid in full, the IRS says you need to file a formal refund claim on Form 1040-X instead, within the refund time limits.
Can I use audit reconsideration if I agreed to the audit changes?
Possibly. The agreements Publication 3598 lists as barring a request are a closing agreement (Form 906), a compromise agreement, and Form 870-AD with Appeals. It does not list the ordinary exam report you may have signed at the end of an audit. If you are unsure which form you signed, check your papers or ask a professional.
Will the IRS stop collecting while it reviews my request?
It may. Publication 3598 says collection may be suspended while the IRS reviews your documents. It can restart if you miss a request for more information. If a levy is causing hardship, contact the Taxpayer Advocate Service.
Is Form 12661 required?
No. The IRS recommends it because it helps you list each issue clearly. A well-organized letter that covers the same points can also work.
What if I never filed and the IRS made a return for me?
You can file your own original return for that year. The IRS treats this as a valid reason for audit reconsideration. Include proof of the deductions, credits and filing status you claim, and send it to the address on your latest notice.
Sources
- Internal Revenue Service (IRS), Publication 3598, "The Audit Reconsideration Process". irs.gov
- IRS, "IRS audits". irs.gov
- IRS, "Filing past due tax returns". irs.gov
- IRS, "File an amended return". irs.gov
- Taxpayer Advocate Service, "Contact us". taxpayeradvocate.irs.gov
IRSV.com is an independent guide and is not affiliated with the IRS. This page is general information, not tax or legal advice. Rules change; confirm details on IRS.gov or with a tax professional. Found an error? Tell us.
