Audit Reconsideration

Audit reconsideration is a procedure that allows a taxpayer to dispute the results of an assessment made because of an audit of taxpayer's return or a substitute return filed by the IRS on behalf of the nonfiling taxpayer in order to lower the tax assessment.

A state or federal tax audit may result in an additional tax assessment. During the audit, there could have been certain documents or other evidence missing that would have worked in the taxpayer's favor and proved his case. Besides, an erroneous assessment might be issued against those taxpayers who might have missed their audit. As soon as the audit assessment becomes final, the government proceeds to collect on the debt. However, the taxpayer may discover new favorable evidence that would have resulted in a smaller assessment or no assessment at all. The IRS has the authority to lessen any assessment or unpaid portion of taxes if:

1. The assessment is in excess of the correct tax liability
2. The assessment is made subsequent to the expiration of the applicable period of limitations or
3. The assessment was erroneously or illegally made.

Remember, an audit reconsideration is not a matter of right but rather entirely at the IRS's discretion. The request for audit reconsideration should include the taxpayer's position and arguments based on the law and should include a good amount of supporting evidence. The IRS will usually suspend collection activity when an audit reconsideration has been submitted. We recommend resorting to the audit reconsideration only if other options, such as filing a petition, have expired and are unavailable.

San Francisco Tax Attorneys have achieved significant success in reopening and overturning inaccurate audit assessments.

Contact us in San Francisco, Oakland or San Jose