What is Audit Reconsideration? A Guide for Apple Valley & Victorville Taxpayers | Tax Help Guy

If you've received an audit notice from the IRS and disagree with the results, you may have options beyond filing an appeal. Audit reconsideration is a process that allows taxpayers inApple Valley,Victorville,Hesperia, and theHigh Desertto request the IRS to reconsider an audit decision when new information becomes available or when the IRS made an error. Understanding this process can help you resolve your tax issues more effectively.

What is Audit Reconsideration?

Audit reconsideration is an IRS procedure that allows you to request a review of an audit decision when:

• You have new information that wasn't available during the audit
• The IRS made an error in the audit
• You didn't respond to the audit notice (and now want to)
• You believe the audit assessment is incorrect

Unlike an appeal, which goes to the IRS Appeals Office, audit reconsideration is handled by the same IRS office that conducted the original audit. This can sometimes be faster and less formal than the appeals process.

When Can You Request Audit Reconsideration?

1. New Information Available

If you have documents or information that wasn't available during the original audit:

• Receipts or invoices you couldn't find before
• Bank statements that support your position
• Witness statements or affidavits
• Expert opinions or appraisals
• Other documentation that changes the audit outcome

2. IRS Error

If the IRS made a mistake during the audit:

• Mathematical errors
• Misapplication of tax law
• Failure to consider all evidence
• Procedural errors

3. You Didn't Respond to the Audit

If you received an audit notice but didn't respond (resulting in a default assessment):

• You can request reconsideration if you have a valid reason
• You must provide the requested information
• You must show you had a reasonable cause for not responding

4. Assessment is Incorrect

If you believe the audit assessment is wrong:

• You can provide additional documentation
• You can explain why the assessment is incorrect
• You can request a review of specific items

When Can't You Request Audit Reconsideration?

Audit reconsideration is NOT available if:

• You've already filed a petition with the Tax Court
• The case is already in Appeals
• You've already paid the tax and are seeking a refund (use Form 1040-X instead)
• The assessment is based on a final court decision
• You're simply disagreeing without new information

How to Request Audit Reconsideration

Step 1: Gather Your Documentation

Before requesting reconsideration, gather:

• All documents that support your position
• The original audit report or notice
• Any correspondence with the IRS
• New evidence that wasn't available during the audit
• A clear explanation of why reconsideration is warranted

Step 2: Write a Reconsideration Request

Your request should include:

• Tax Year:Clearly identify the tax year in question
• Reason:Explain why you're requesting reconsideration
• New Information:Describe any new information you're providing
• Supporting Documents:Attach all relevant documentation
• Contact Information:Your name, address, phone, and SSN

Step 3: Submit to the Correct IRS Office

Send your request to:

• The IRS office that conducted the original audit, OR
• The IRS office shown on your audit notice
• For High Desert taxpayers, this is typically the San Bernardino IRS office

What Happens After You Request Reconsideration?

1. IRS Review

The IRS will review your request and documentation:

• They may request additional information
• They may contact you for clarification
• They may schedule a meeting or phone call
• The review process can take several months

2. Possible Outcomes

• Full Reconsideration:IRS agrees with you and removes/adjusts the assessment
• Partial Reconsideration:IRS adjusts some items but not others
• No Change:IRS maintains the original assessment
• Additional Assessment:Rarely, the IRS may find additional issues

3. Notification

The IRS will notify you of their decision:

• You'll receive a written notice
• The notice will explain the decision
• If you disagree, you can appeal

Common Scenarios for High Desert Taxpayers

Scenario 1: Missing Receipts

You were audited and couldn't find receipts for business expenses. Later, you find them:

• You can request reconsideration with the new receipts
• Provide a clear explanation of why they weren't available before
• Organize receipts by category and date

Scenario 2: IRS Misunderstood Your Business

The IRS auditor didn't understand your High Desert business operations:

• You can provide additional explanation
• Include business records that clarify operations
• Provide industry-specific information if relevant

Scenario 3: You Didn't Respond

You received an audit notice but didn't respond, resulting in a default assessment:

• You can request reconsideration if you have a valid reason
• Explain why you didn't respond (illness, didn't receive notice, etc.)
• Provide all requested documentation

Tips for a Successful Reconsideration Request

• Be Thorough:Include all relevant documentation
• Be Clear:Explain your position clearly and concisely
• Be Organized:Organize documents logically
• Be Timely:Respond to IRS requests promptly
• Be Professional:Maintain a professional tone
• Get Help:Consider professional representation

Alternatives to Audit Reconsideration

If audit reconsideration isn't appropriate, consider:

• IRS Appeals:Formal appeal to the IRS Appeals Office
• Tax Court:File a petition with the U.S. Tax Court
• Amended Return:If you've paid, file Form 1040-X for a refund
• Collection Due Process:If collection has started

Local Resources for High Desert Taxpayers

• San Bernardino IRS Office:290 North D Street, San Bernardino, CA 92401
• IRS Phone:1-800-829-1040
• Taxpayer Advocate Service:For help resolving tax problems
• Local Tax Professionals:In Apple Valley, Victorville, and Hesperia

Conclusion

Audit reconsideration is a valuable option for High Desert taxpayers in Apple Valley, Victorville, and Hesperia who disagree with an IRS audit result. Whether you have new information, believe the IRS made an error, or didn't respond to the original audit, reconsideration may be an option.

However, the process requires specific documentation and procedures. Working with a tax professional in Apple Valley or Victorville can significantly improve your chances of success. Our tax experts understand the audit reconsideration process and can help you prepare a compelling request that gives you the best chance of a favorable outcome.