AUDIT RECONSIDERATION REQUEST LETTER

Taxpayer Information

[__/__/____]

Internal Revenue Service
[________________________________]
[________________________________]
[________________________________]

Via Certified Mail, Return Receipt Requested

Re: Request for Audit Reconsideration
Taxpayer: [________________________________]
SSN/EIN: [________________________________]
Tax Period(s): [________________________________]
Examination Report: Form 4549 / Form 4549-A / Letter [________________________________] dated [__/__/____]

To Whom It May Concern:

I respectfully request an audit reconsideration of the examination results for the tax period(s) identified above pursuant to IRM 4.13.1 (Examination Audit Reconsideration Process). I disagree with the audit determination and have new information and documentation not previously considered during the original examination that supports a reduction or elimination of the additional tax assessed.

The total additional tax assessed as a result of the original examination was $[________________] [plus penalties of $[________________] and interest]. I respectfully submit that the correct additional tax, if any, should be $[________________], resulting in a requested reduction of $[________________].

I. WHAT IS AUDIT RECONSIDERATION?

Audit reconsideration is the process the IRS uses to reevaluate the results of a prior examination (audit) where additional tax was assessed and remains unpaid, or a tax credit was reversed. Under IRM 4.13.1.2, the IRS will reconsider an examination determination when the taxpayer:

1. Disagrees with the original determination, AND
2. Provides new information for the audited issue(s) that was not previously considered during the original examination.

Audit reconsideration is an administrative process — it is not an appeal, and it does not involve the IRS Independent Office of Appeals (though appeal rights may exist after the reconsideration). The IRS Campus Examination function typically processes reconsideration requests.

When Is Audit Reconsideration Appropriate?

Audit reconsideration may be appropriate when:

☐ The taxpayer did not appear for the original audit (e.g., did not receive correspondence, was ill, was incapacitated)
☐ The taxpayer moved and did not receive IRS correspondence
☐ The taxpayer has new documentation that was not available or not submitted during the original audit
☐ The IRS made a computational or processing error in the examination report
☐ The IRS assessed tax based on a Substitute for Return (SFR) and the taxpayer now has the original or corrected return
☐ The taxpayer did not understand the examination process and failed to respond
☐ The taxpayer's representative failed to respond or participate in the audit
☐ The taxpayer disagrees with the legal conclusions reached by the examiner and has authority supporting a different position

When Is Audit Reconsideration NOT Appropriate?

Audit reconsideration is generally not available when:

• The taxpayer previously participated in the audit and agreed to the adjustments (signed Form 870 or Form 4549)
• The matter was resolved by the IRS Independent Office of Appeals
• The matter was decided by the Tax Court or other federal court
• The taxpayer seeks reconsideration based on the same information previously considered
• The assessment period has been extended by agreement and the statute of limitations has not expired (the case should be reopened through normal examination procedures)

II. REASON FOR REQUESTING AUDIT RECONSIDERATION

A. Basis for Reconsideration (Check All That Apply)

☐ Did not appear for audit / Did not receive IRS correspondence

I did not participate in the original examination because:
☐ I did not receive the examination notice (IRS sent to wrong address)
☐ I was hospitalized or incapacitated during the audit period
☐ I was deployed by the military
☐ I was incarcerated
☐ My representative failed to respond on my behalf
☐ Other: [________________________________]

Explanation: [________________________________]
[________________________________]
[________________________________]

☐ New documentation available

I have obtained documentation that was not previously submitted to the IRS and that supports a reduction in the assessed tax. The new documentation includes:

[List each document and explain why it was not available during the original audit]

1. [________________________________] — Reason not previously available: [________________________________]
2. [________________________________] — Reason not previously available: [________________________________]
3. [________________________________] — Reason not previously available: [________________________________]
4. [________________________________] — Reason not previously available: [________________________________]
5. [________________________________] — Reason not previously available: [________________________________]

☐ Computational or processing error by the IRS

The IRS examination report contains the following error(s):

• Error description: [________________________________]
• Correct amount: $[________________]
• Incorrect amount on report: $[________________]
• Difference: $[________________]

☐ Substitute for Return (SFR) assessment

The IRS assessed tax based on a Substitute for Return (SFR) prepared by the IRS under IRC § 6020(b) because I did not file a return for the period(s) at issue. I have now filed (or am filing with this request) the original return for the period(s), which shows:

• Tax per SFR assessment: $[________________]
• Tax per filed return: $[________________]
• Difference (reduction requested): $[________________]

☐ I am filing the original return with this request: ☐ Yes ☐ No
☐ I previously filed the return on [__/__/____] but the IRS did not process it

☐ Disagreement with legal conclusions

I disagree with the examiner's interpretation of the law regarding the following issue(s):

[________________________________]
[________________________________]

III. ISSUES IN DISPUTE — ITEM-BY-ITEM ANALYSIS

For each adjustment on the examination report (Form 4549 or Form 4549-A) that I dispute, I provide the following information:

Issue 1: [________________________________]

Explanation and Legal Authority:

[Provide a detailed explanation of why the IRS determination is incorrect. Cite applicable IRC sections, Treasury Regulations, case law, IRS publications, or other authority.]

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Supporting Documentation:

☐ [Document 1: ________________________________]
☐ [Document 2: ________________________________]
☐ [Document 3: ________________________________]

Issue 2: [________________________________]

Explanation and Legal Authority:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Supporting Documentation:

☐ [Document 1: ________________________________]
☐ [Document 2: ________________________________]
☐ [Document 3: ________________________________]

Issue 3: [________________________________]

Explanation and Legal Authority:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Supporting Documentation:

☐ [Document 1: ________________________________]
☐ [Document 2: ________________________________]
☐ [Document 3: ________________________________]

Issue 4: [________________________________]

(Copy and adapt this format for each additional disputed issue)

Explanation and Legal Authority:

[________________________________]
[________________________________]

Supporting Documentation:

☐ [Document 1: ________________________________]
☐ [Document 2: ________________________________]

Summary of Adjustments Requested

IV. LEGAL AUTHORITIES

A. IRM 4.13.1 — Audit Reconsideration Process

The IRS Internal Revenue Manual at IRM 4.13.1 establishes the procedures for processing audit reconsideration requests. Under this section:

• IRM 4.13.1.2: Defines audit reconsideration as the process used to reevaluate a prior audit where additional tax was assessed and remains unpaid, or a credit was reversed.
• IRM 4.13.1.4: Establishes criteria for accepting a reconsideration request, including the requirement for new information.
• IRM 4.13.1.7: Sets forth procedures for the assigned examiner to review the new information and make a determination.
• IRM 4.13.1.10: Provides for the taxpayer's right to request a conference with the examiner's manager if the reconsideration results are unfavorable.

B. Substantive Legal Authorities for Disputed Issues

[List the specific IRC sections, Treasury Regulations, Revenue Rulings, Revenue Procedures, Tax Court cases, and other authorities that support the taxpayer's position on each disputed issue.]

1. IRC § [____]: [Description and application to the taxpayer's situation]
2. Treas. Reg. § [____]: [Description and application]
3. Rev. Rul. [____]: [Description and application]
4. [Case Name], [Citation]: [Description and application]
5. IRS Publication [____]: [Description and application]
6. IRC § [____]: [Description and application]

C. Taxpayer Bill of Rights — IRC § 7803(a)(3)

The Taxpayer Bill of Rights guarantees all taxpayers fundamental rights, including:

• The right to be informed: The taxpayer has the right to know what they need to do to comply with tax laws and to receive clear explanations of IRS determinations.
• The right to challenge the IRS's position and be heard: The taxpayer has the right to raise objections and provide additional documentation, and to expect that the IRS will consider these objections timely and fairly.
• The right to pay no more than the correct amount of tax: The taxpayer has the right to pay only the amount of tax legally owed, including interest and penalties, and to have the IRS apply all tax payments properly.
• The right to a fair and just tax system: The taxpayer has the right to expect the tax system to consider facts and circumstances that might affect underlying liabilities, ability to pay, or ability to provide information timely.

D. Burden of Proof

Under IRC § 7491(a), the burden of proof shifts to the IRS in any court proceeding with respect to a factual issue if the taxpayer:
1. Introduces credible evidence with respect to the factual issue
2. Has complied with all substantiation and record-keeping requirements
3. Has cooperated with reasonable IRS requests for information
4. Has maintained all required records

While audit reconsideration is an administrative (not judicial) proceeding, the taxpayer should present evidence sufficient to shift the burden under the IRC § 7491(a) standard.

V. PROCEDURAL HISTORY

A. Original Examination

• Original examination notice received: [__/__/____]
• Type of examination: ☐ Correspondence (mail) ☐ Office ☐ Field
• Examination period: From [__/__/____] to [__/__/____]
• Taxpayer participated: ☐ Yes (partially) ☐ No
• Representative participated: ☐ Yes ☐ No ☐ N/A (no representative)
• Examination report (Form 4549 / 4549-A) issued: [__/__/____]
• Taxpayer agreed (signed Form 870): ☐ Yes ☐ No
• Notice of Deficiency (90-day letter) issued: ☐ Yes (date: [__/__/____]) ☐ No
• Tax Court petition filed: ☐ Yes ☐ No
• Assessment date: [__/__/____]
• Amount assessed: $[________________]
• Amount paid to date: $[________________]
• Amount remaining: $[________________]

B. Prior Reconsideration Requests

☐ No prior reconsideration requests have been submitted
☐ A prior reconsideration request was submitted on [__/__/____] with the following result:
- [________________________________]
- Reason current request is different: [________________________________]

C. Appeals History

☐ No appeal was taken from the original examination
☐ The matter was appealed to the IRS Independent Office of Appeals on [__/__/____]
- Result: [________________________________]
☐ The matter was not heard by the Tax Court or any other court

VI. REQUEST FOR RELIEF

Based on the information and documentation presented in this letter, I respectfully request the following:

☐ Full abatement: Abatement of the entire additional tax assessment of $[________________], plus all associated penalties and interest
☐ Partial abatement: Reduction of the additional tax assessment from $[________________] to $[________________], resulting in an abatement of $[________________], plus proportionate reduction of penalties and interest
☐ Penalty abatement: In addition to the tax adjustment, I request abatement of the following penalties for reasonable cause:
- ☐ Failure to file penalty (IRC § 6651(a)(1)): $[________________]
- ☐ Failure to pay penalty (IRC § 6651(a)(2)): $[________________]
- ☐ Accuracy-related penalty (IRC § 6662): $[________________]
- ☐ Other: [________________________________]
☐ Refund: If the taxpayer has overpaid as a result of the erroneous assessment, I request a refund of $[________________] plus applicable interest

VII. SUPPORTING DOCUMENTATION CHECKLIST

The following documents are enclosed with this request. The IRS will not reconsider the audit without new documentation. All documents not previously submitted to the IRS are marked with an asterisk (*).

Examination Records

☐ Copy of IRS examination report (Form 4549 or Form 4549-A)
☐ Copy of the Notice of Deficiency (if issued)
☐ Copy of IRS examination notice/letter
☐ Copy of the original tax return for the period(s) at issue
☐ Copy of amended return (if filed)
☐ IRS account transcript for the period(s) at issue

New Documentation — Income Items

☐ * W-2 forms (corrected or previously unavailable)
☐ * 1099 forms (corrected, explaining discrepancies, or showing reported amounts are incorrect)
☐ * Bank statements showing deposits are not income (e.g., transfers, loans, gifts)
☐ * Letter from employer or payer explaining corrected amounts
☐ * Evidence of nontaxable income (e.g., gifts, inheritances, loans, reimbursements)
☐ * Corrected information return from the issuer
☐ * Other: [________________________________]

New Documentation — Deduction and Credit Items

☐ * Receipts, invoices, or canceled checks substantiating deductions
☐ * Mileage logs or vehicle expense records
☐ * Home office measurement and documentation
☐ * Charitable contribution receipts (contemporaneous written acknowledgments for gifts ≥ $250)
☐ * Medical expense documentation (Explanation of Benefits, receipts, insurance statements)
☐ * Business expense records (travel, meals, supplies, professional services)
☐ * Mortgage interest statement (Form 1098)
☐ * Property tax payment records
☐ * Student loan interest statement (Form 1098-E)
☐ * Education credit documentation (Form 1098-T, payment receipts)
☐ * Child care expense documentation (provider statements, Form 2441 support)
☐ * Earned Income Tax Credit documentation (children's birth certificates, school records, residency proof)
☐ * Other: [________________________________]

New Documentation — Filing Status and Dependents

☐ * Marriage certificate or divorce decree (supporting filing status)
☐ * Birth certificates for dependents
☐ * School records showing dependent residency
☐ * Medical records showing dependent residency
☐ * Custody agreement or court order
☐ * Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent)
☐ * Other: [________________________________]

Form 12661 — Disputed Issue Verification

☐ IRS Form 12661 (Disputed Issue Verification) completed and enclosed — this form helps clarify the specific issues in dispute

Representation

☐ Form 2848 (Power of Attorney and Declaration of Representative) — if represented
☐ Form 8821 (Tax Information Authorization) — if applicable

Other

☐ [________________________________]
☐ [________________________________]
☐ [________________________________]

VIII. HOW TO SUBMIT THIS REQUEST

A. Submission Methods

Option 1 — IRS Document Upload Tool (DUT) (Recommended)
☐ Upload the letter and all supporting documents at: https://www.irs.gov/examreply
☐ Use the "Audit Reconsideration" option
☐ Save the confirmation number

Option 2 — Mail (Certified Mail, Return Receipt Requested)
☐ Mail to the IRS office that handled the original audit (address from the examination report)
☐ If the address is unknown, mail to:

Internal Revenue Service
[________________________________]
[________________________________]
[________________________________]

Option 3 — Fax
☐ Fax to the number on the IRS notice: [________________________________]
☐ Include a cover sheet identifying the taxpayer, SSN/EIN, and "Audit Reconsideration Request"

B. After Submission

☐ Allow 30 days for the IRS to acknowledge receipt
☐ The reconsideration process typically takes 90–180 days (but may take longer)
☐ The IRS may request additional information — respond promptly
☐ If collection activity is ongoing, call the IRS to request a temporary hold pending reconsideration

IX. APPEAL RIGHTS AFTER RECONSIDERATION

A. If Reconsideration Is Fully or Partially Denied

☐ Manager Conference: Request a conference with the examiner's manager under IRM 4.13.1.10
☐ IRS Independent Office of Appeals: If the reconsideration results in continued disagreement, request referral to the Appeals Office
- File a written protest or small case request (Form 13711)
- For amounts ≤ $25,000: use the small case request procedure
- For amounts > $25,000: file a formal written protest
☐ Tax Court Petition: If the IRS issues a new Notice of Deficiency as a result of the reconsideration (unlikely but possible in certain circumstances), petition the Tax Court within 90 days
☐ Refund Claim: If the tax has been paid, file a formal claim for refund (Form 1040-X or Form 843) and, if denied, file suit in U.S. District Court or the Court of Federal Claims within 2 years of disallowance

B. Collection During Reconsideration

Important: Audit reconsideration does not automatically suspend IRS collection activity. If collection action is pending:
- Call the IRS to request a temporary hold on collection while the reconsideration is processed
- If a levy or lien is threatened, request a Collection Due Process hearing (Form 12153) within 30 days of the levy/lien notice
- Consider making partial payments to demonstrate good faith and reduce interest accrual
- If the liability cannot be paid, request an installment agreement (Form 9465) or Currently Not Collectible status

X. PRACTICE TIPS FOR PRACTITIONERS

A. Preparing an Effective Reconsideration Request

1. Obtain the examination file: Order the IRS examination report (Form 4549), the examination workpapers (if available via FOIA), and the account transcript to understand exactly what was adjusted and why.
2. Identify what's new: The IRS requires new information not previously considered. If the same documents were already reviewed, the reconsideration will be denied. Clearly identify what is new and why it was not previously submitted.
3. Organize by issue: Address each adjustment on the Form 4549 separately. Provide a clear explanation and supporting documentation for each item.
4. Use Form 12661: The IRS Form 12661 (Disputed Issue Verification) is a useful tool for organizing the disputed items. It helps the IRS quickly identify the issues.
5. Address all adjustments: Even if you only dispute some items, acknowledge the undisputed items to demonstrate good faith.
6. File the return if one was not filed: If the assessment was based on an SFR, file the original return with the reconsideration request. The IRS will process the return as part of the reconsideration.

B. Common Reconsideration Scenarios

1. SFR Assessments: The IRS assessed tax based on information returns (W-2, 1099) without the benefit of deductions, credits, or filing status. The taxpayer files the original return showing a lower liability.
2. Unreported Income: The IRS identified unreported income that was actually nontaxable (transfers, loans, gifts) or was offset by unreported deductions.
3. Disallowed Deductions/Credits: The IRS disallowed deductions or credits due to lack of substantiation. The taxpayer now has the supporting documentation.
4. No-Show Audits: The taxpayer did not participate in the examination (did not receive mail, was incapacitated, etc.) and now has the documentation to substantiate the return.
5. Filing Status / Dependency: The IRS changed the filing status or disallowed dependents. The taxpayer has documentation supporting the original filing status or dependency claim.

C. Key IRS Forms and References

XI. DECLARATION

I declare under penalties of perjury that the statements made in this letter are true, correct, and complete to the best of my knowledge and belief. I understand that any false or misleading statement may result in additional penalties.

XII. CONCLUSION

For the reasons stated above, I respectfully request that the Internal Revenue Service reconsider the examination results for the tax period(s) identified above. New information and documentation not previously considered during the original examination have been provided, which support a [full / partial] reduction of the additional tax assessed.

I respectfully request that the IRS:
1. Review the enclosed documentation
2. Adjust the assessment from $[________________] to $[________________]
3. Abate any penalties and interest attributable to the reduced assessment
4. [Issue a refund of $[________________] if overpayment has occurred]
5. Confirm the results in writing

Please acknowledge receipt of this request within 30 days. If additional information is needed, please contact me at the address and phone number listed above, or through my authorized representative.

Thank you for your consideration.

Respectfully submitted,

________________________________________
[TAXPAYER NAME]
[________________________________]
[________________________________]
[________________________________]
Telephone: [________________________________]
E-mail: [________________________________]

Authorized Representative (if applicable):

________________________________________
[REPRESENTATIVE NAME]
[TITLE / DESIGNATION (Attorney, CPA, Enrolled Agent)]
[FIRM NAME]
[________________________________]
[________________________________]
Telephone: [________________________________]
E-mail: [________________________________]
CAF Number: [________________________________]

Enclosures

[List all enclosed documents]

1. [________________________________]
2. [________________________________]
3. [________________________________]
4. [________________________________]
5. [________________________________]
6. [________________________________]
7. [________________________________]

Sources and References

• IRM 4.13.1 — Audit Reconsideration Process: https://www.irs.gov/irm/part4/irm_04-013-001r
• IRM 4.10.11 — Claims for Refund, Requests for Abatement, and Audit Reconsiderations: https://www.irs.gov/irm/part4/irm_04-010-011
• IRS Audit Reconsideration Process for Correspondence Examination: https://www.irs.gov/credits-deductions/audit-reconsideration-process-for-correspondence-examination-audits-by-mail
• Publication 3598 — What You Should Know About the Audit Reconsideration Process: https://www.irs.gov/pub/irs-pdf/p3598.pdf
• Publication 556 — Examination of Returns, Appeal Rights, and Claims for Refund: https://www.irs.gov/pub/irs-pdf/p556.pdf
• Form 4549 Information: https://www.irs.gov/pub/irs-pdf/f4549.pdf
• IRS Document Upload Tool: https://www.irs.gov/examreply
• Taxpayer Bill of Rights: https://www.irs.gov/taxpayer-bill-of-rights