College of Law :: Georgia State University

Audit Reconsideration

Audit reconsideration is an IRS administrative 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.

The IRS has the authority to abate any assessment or unpaid portion thereof 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

The IRS will not accept an audit reconsideration if:

1. The taxpayer has already signed an agreement agreeing to pay the amount owing.  Examples:
   
   
   
   1. Closing agreement
   2. Offer in Compromise
   3. Form 870AD with the Appeals Office
      
      
2. The U.S. Tax Court or another court has issued a final determination on the tax liability.

Requirements for Submitting an Audit Reconsideration

1. The return for the tax year in question must be filed
2. A copy of the audit report (Form 4549, Income Tax Examination Changes) must be submitted, if available.
3. The changes to be reconsidered must be set forth
4. A detailed memorandum setting forth the relevant facts and applicable law must be included.

An audit reconsideration is not a matter of right but rather completely at the IRS's discretion.  The request should include the taxpayer's position and arguments based on the law and should include a good amount of supporting evidence.  The student attorney should not consider submitting an audit reconsideration if there is not sufficient evidence to support the taxpayer's position.  The IRS will typically delay collection activity when an audit reconsideration has been submitted, although it is not required by law to do so.

The audit reconsideration should only be submitted if other options, such as filing a petition, have expired and are unavailable.  The audit reconsideration should be prepared and presented in the same manner as an Appeals notebook.  The only difference is that a cover letter is included with the audit reconsideration.

Audit reconsiderations should be sent vie UPS to the following address:

Internal Revenue Service
Atlanta Service Center
Audit Reconsideration Unit
2385 Chamblee-Tucker Road Stop 54A
Atlanta, GA 30362

By Certified Mail, Return Receipt Requested through United States Postal Service:

Internal Revenue Service
Atlanta Service Center
Audit Reconsideration Unit
P.O. Box 48-389 Stop 54A
Doraville, GA 30362

NOTE:  Before sending in a request, confirm through the Practitioner Priority Hotline that this is the correct address for your client. 

You can also verify the correct mailing address by contacting the Georgia IRS Audit Reconsideration Unit.  Refer to the IRS Contact folder in Amicus.

Resources

Sample Audit Reconsideration

Audit Reconsideration Cover Letter

IRS Forms and Publications