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IRS Tax Audit Reconsideration

IRS Tax Audit Reconsideration: Expert Help When You Need It

Disagree with an IRS Tax Audit – Ask for Tax Audit Reconsideration – We Can Help.

IRS Tax Audit Reconsideration

As a tax professional, I can help minimize your tax debt and facilitate a settlement arrangement through my knowledge and experience.

If your taxes were reassessed following an IRS letter reconsideration, we have the expertise to resolve your tax debt simultaneously. Dreis Tax Services, a tax professional, can reopen your IRS Tax Audit and likely reduce your tax liability significantly.


In some cases, the IRS audits your tax return without your knowledge. In other situations, you may disagree with the tax audit outcome and require the IRS to reconsider the case.

By requesting an IRS Tax Audit Reconsideration, we can reopen your case and work towards a resolution for your tax audit concerns.

The Internal Revenue Service will re-open tax audits to:

  • Ensuring the amount of assessed tax is correct.
  • Ensuring the collection process is suspended while the reconsideration request is being considered.
  • Ensuring that the procedures support the abatement of assessments inappropriate situations.

What is the Definition of an Audit Reconsideration

An IRS Tax Audit Reconsideration is a formal procedure employed by the IRS to reassess the outcomes of a previous audit where there are outstanding taxes owed due to additional tax assessment or the reversal of a tax credit.

When a taxpayer disagrees with the initial findings, they have the opportunity to present new information that was not previously examined during the original audit.

Additionally, the IRS uses the Tax Audit Reconsideration process when a taxpayer challenges a Substitute for Return (SFR) determination by filing a delinquent return to address the discrepancies.

If the IRS prepared your Tax Return under 6020B:

If the taxpayer disagrees with a tax assessment resulting from IRC Section 6020(b) – Substitute for Return (SFR), they have the option to request an IRS Tax Audit Reconsideration.

Furthermore, taxpayers may also be eligible for a Tax Audit Reconsideration if they have been denied tax credits, such as the Earned Income Tax Credit (EITC), during a previous examination.

Criteria for Reconsideration

To initiate an IRS Tax Audit Reconsideration, the taxpayer is required to follow these steps:
1. Ensure that a tax return has been filed.
2. Verify that the assessment remains unpaid or the IRS has reversed tax credits in dispute.
3. Clearly identify the specific adjustments being contested.
4. Provide additional information that was not considered during the initial examination.

Information the Taxpayer should provide

  • All information received from the Taxpayer pertinent to the issue
  • Information not considered during the original audit.
  • Copies of letters and reports received by the taxpayer, if the case is NOT on RGS.
  • Copies of documents already submitted by the taxpayer.
  • Amended return, if applicable.

Tax Authority for the IRS to accept a Reconsideration

  • As per IRC Section 6404(a) (301.6404-1), the Internal Revenue Service has the power to cancel out any tax assessment that goes beyond the liability of the taxpayer. This is within the agency’s discretion.

Acceptance of Request

The IRS will review a request for reconsideration under the following circumstances:
1. The taxpayer seeks an abatement of an assessment by presenting information that was not previously considered, and this new information could have resulted in a different assessment.
2. The taxpayer files an original delinquent return after the IRS made an assessment based on a return prepared under IRC Section 6020(b) or other substitute for return procedures.
3. An IRS computational or processing error led to the incorrect tax assessment.

Non-Acceptance of Request

A request for reconsideration will not be considered if:
1. The taxpayer has previously been given the opportunity for an audit reconsideration and the current request does not include any new or additional information that could alter the audit results.

Other pertinent information

A request for reconsideration will not be considered if:
1. The assessment was the outcome of a compromise under IRC Section 7122, which is considered final and conclusive.
2. The assessment resulted from final TEFRA administrative proceedings.
3. The assessment was based on an agreement made through Form 870-AD, “Offer of Waiver of Restrictions on Assessment and Collection of Deficiency in Tax.”
4. The United States Tax Court has issued a final decision, or a District Court or the United States Court of Federal Claims has rendered a judgment on the merits that has become final.

Noteworthy Facts:

Requests for reconsideration for cases that were settled by Tax Court, District Court, or Court of Federal Claims must be directed to the Office of the Associate Area Counsel, who will forward it to the docket attorney.

If the Tax Court dismisses a case for lack of jurisdiction, it does not issue a decision, and the dismissal is not based on the merits of the case (See IRC Section 7459(d)).

Similarly, when a District Court or the United States Court of Federal Claims dismisses a case for lack of jurisdiction, the dismissal is not a decision on the merits of the case.

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