This is the third post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations.
Audit Reconsideration. Through audit reconsideration, a taxpayer may get a second chance at an audit. He may have been previously notified of an audit but been unable to deal with the situation. You may see in the taxpayer’s records that the IRS assessment is clearly or at least potentially wrong. To correct this, you can ask the IRS for an audit reconsideration. Even though an assessment has already been made, the IRS has the discretionary authority to abate an assessment of any tax if it is in excess of the taxpayer’s liability.
Reasons for an audit reconsideration
The taxpayer did not appear for the audit;
The taxpayer moved and did not receive the correspondence from the IRS;
The taxpayer has new documentation to present.
Requirements For an Audit Reconsideration
The taxpayer must have filed a tax return;
The assessment remains unpaid or the Service has reversed tax credits that the taxpayer is disputing;
The taxpayer must know which adjustments they are disputing;
The taxpayer must provide additional information not considered during the original examination.