So, you've received some news from the IRS about an audit, and maybe it wasn't quite what you expected. It's understandable to feel a bit worried. But what if you disagree with their findings? That's where an IRS Audit Reconsideration Letter Sample comes into play, offering a way to ask the IRS to take another look. This article will break down what that means and how you might go about it, so you can feel more in control.
When the IRS Says You Owe More, and You Don't Agree
When the IRS conducts an audit, their goal is to make sure you've paid the correct amount of taxes. Sometimes, they might find things that lead them to believe you owe additional tax, penalties, or interest. If you've reviewed their findings and genuinely believe they made a mistake, or that you have new information that wasn't considered, you have the right to ask for reconsideration. This is a crucial step to ensure fairness and accuracy in your tax obligations. It’s not an appeal, but rather a request for the IRS to re-examine their initial decision based on your specific situation and evidence.
- Mistakes in calculations
- New or overlooked documentation
- Misinterpretation of tax laws
The process usually starts with receiving a notice from the IRS detailing their findings. After you receive this notice, and you've decided to seek reconsideration, you'll need to prepare your case. This involves gathering all relevant documents and explaining clearly why you believe the IRS's decision was incorrect. The IRS has specific procedures for this, and understanding them is key to a successful reconsideration.
Here’s a simplified look at what might happen:
| IRS Action | Your Action |
|---|---|
| IRS sends audit findings notice | Review the notice carefully |
| You disagree with findings | Gather evidence and prepare your case |
| You submit a reconsideration request | Wait for IRS response |
Think of it like this: if your teacher graded your paper and you thought they missed a correct answer, you wouldn't just accept the grade. You'd point out the correct answer. An IRS audit reconsideration is similar, but with more formal steps and documentation required.
IRS Audit Reconsideration Letter Sample: Disputing a Specific Income Item
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Department Address - As stated on your notice]
[IRS City, State, Zip Code]
Subject: Request for Reconsideration - Audit Changes for Tax Year [Year] - Notice #[Notice Number]
Dear Sir or Madam,
I am writing to formally request a reconsideration of the audit changes made to my federal income tax return for the tax year [Year], as detailed in your Notice #[Notice Number], dated [Date of Notice].
I understand that the IRS has adjusted my tax liability due to [briefly state the IRS's reason, e.g., "additional taxable income identified from freelance work"]. However, I believe there has been a misunderstanding or an oversight regarding this specific item. The income in question was reported as [explain how you reported it, e.g., "correctly reported on Schedule C as business income"].
Attached, please find supporting documentation that was either not presented during the initial audit or was perhaps overlooked. This includes:
- [List specific documents, e.g., "Copies of invoices for services rendered during the tax year."]
- [List specific documents, e.g., "Bank statements showing deposits that correspond with these invoices."]
- [List specific documents, e.g., "A corrected profit and loss statement reflecting all business expenses."]
My intention was to accurately report all my income and deductions. I kindly request that you re-evaluate the adjustment related to [specific income item] with this additional information. If you require any further clarification or documentation, please do not hesitate to contact me at [Your Phone Number] or [Your Email Address].
Thank you for your time and consideration of this request.
Sincerely,
[Your Signature (if mailing a physical letter)]
[Your Typed Name]
IRS Audit Reconsideration Letter Sample: Disputing Denied Deductions
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Department Address - As stated on your notice]
[IRS City, State, Zip Code]
Subject: Request for Reconsideration - Denied Deductions for Tax Year [Year] - Notice #[Notice Number]
Dear Sir or Madam,
I am writing to request a reconsideration of the disallowance of certain deductions claimed on my federal income tax return for the tax year [Year]. The IRS Notice #[Notice Number], dated [Date of Notice], indicates these deductions were not permitted.
I understand the IRS has disallowed [mention the specific deductions, e.g., "my business expense deductions for travel and meals"]. I believe these expenses were legitimate and directly related to my business operations. I have reviewed the requirements for these deductions and am confident that my claims meet the necessary criteria.
To support my request, I have attached the following documents:
- [List specific documents, e.g., "Receipts and travel itineraries for business trips."]
- [List specific documents, e.g., "Itemized statements of business meal expenses, including the names of individuals and the business purpose."]
- [List specific documents, e.g., "A logbook detailing business mileage and associated costs."]
I respectfully ask that you review these records and reconsider the disallowance of my business expense deductions. I believe that with this additional information, the original determination will be found to be incorrect. Please feel free to contact me at [Your Phone Number] or [Your Email Address] if you require further details.
Thank you for your attention to this matter.
Sincerely,
[Your Signature (if mailing a physical letter)]
[Your Typed Name]
IRS Audit Reconsideration Letter Sample: Overlooked Information
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Department Address - As stated on your notice]
[IRS City, State, Zip Code]
Subject: Request for Reconsideration - Audit Changes Due to Overlooked Information for Tax Year [Year] - Notice #[Notice Number]
Dear Sir or Madam,
I am writing to request a reconsideration of the audit changes assessed on my tax return for the year [Year], as outlined in your Notice #[Notice Number] dated [Date of Notice]. I believe that certain crucial information was not fully presented or considered during the initial audit process, which may have led to the current adjustments.
Specifically, during the audit, I provided documentation regarding [mention the overlooked information, e.g., "a charitable donation made to the XYZ Foundation"]. However, it appears the extent of this contribution, or its implications for my tax liability, may not have been fully appreciated.
To help facilitate your reconsideration, I am resubmitting the following documents:
- [List specific documents, e.g., "A detailed receipt from the XYZ Foundation, confirming the date and amount of the donation."]
- [List specific documents, e.g., "My original tax return highlighting where this deduction was claimed."]
- [List specific documents, e.g., "A letter from XYZ Foundation clarifying the nature of the contribution, if applicable."]
My sincere intention is to ensure my tax return accurately reflects my financial situation and all eligible tax benefits. I am hopeful that a review of this overlooked information will lead to a revised assessment. Please contact me at [Your Phone Number] or [Your Email Address] if you have any questions.
Thank you for reviewing my request.
Sincerely,
[Your Signature (if mailing a physical letter)]
[Your Typed Name]
IRS Audit Reconsideration Letter Sample: Requesting a Math Error Correction
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Department Address - As stated on your notice]
[IRS City, State, Zip Code]
Subject: Request for Reconsideration - Mathematical Error on Tax Year [Year] Return - Notice #[Notice Number]
Dear Sir or Madam,
I am writing to request a reconsideration of the IRS Notice #[Notice Number], dated [Date of Notice], concerning my federal income tax return for the tax year [Year]. I believe there may be a mathematical error in the assessment of my tax liability as presented in this notice.
Upon reviewing the notice and my original return, I have identified a potential discrepancy in the calculation of [specify the area of potential error, e.g., "the total tax due," or "the amount of refund calculated"]. It appears that [explain the suspected error, e.g., "a figure was carried over incorrectly from line X to line Y," or "the tax bracket calculation was misapplied"].
To clarify, I have attached the following:
- [List specific documents, e.g., "A copy of my original tax return for the tax year [Year]."]
- [List specific documents, e.g., "A highlighted copy of the IRS Notice #[Notice Number] indicating the specific calculation I believe is in error."]
- [List specific documents, e.g., "My own recalculation of the affected portion of the tax return, showing the corrected figure."]
I kindly request that you re-examine the calculations related to [specific area of error] to verify the potential mathematical error. My aim is to ensure the correct tax amount is assessed. Please contact me at [Your Phone Number] or [Your Email Address] if you require any further information.
Thank you for your attention to this urgent matter.
Sincerely,
[Your Signature (if mailing a physical letter)]
[Your Typed Name]
IRS Audit Reconsideration Letter Sample: Incorrectly Applied Penalty
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Department Address - As stated on your notice]
[IRS City, State, Zip Code]
Subject: Request for Reconsideration - Penalty Assessment for Tax Year [Year] - Notice #[Notice Number]
Dear Sir or Madam,
I am writing to request a reconsideration of the penalty assessed on my federal income tax return for the tax year [Year], as stated in IRS Notice #[Notice Number], dated [Date of Notice]. I believe this penalty may have been applied incorrectly under the circumstances.
The notice indicates a penalty for [mention the type of penalty, e.g., "failure to pay on time" or "underpayment of estimated tax"]. While I acknowledge the [briefly explain the situation, e.g., "delay in payment" or "initial underestimation"], I believe there are mitigating circumstances that warrant a waiver or reduction of this penalty.
Specifically, [explain your reason for requesting reconsideration, e.g., "I experienced a significant unexpected medical emergency that made it impossible for me to file and pay on time," or "I made a good-faith effort to accurately estimate my tax liability, and unforeseen changes in my income occurred."] I have attached documentation to support these claims:
- [List specific documents, e.g., "Medical bills and a doctor's note explaining the period of incapacity."]
- [List specific documents, e.g., "Correspondence with my employer detailing unexpected changes in commission structure."]
- [List specific documents, e.g., "Proof of timely payments for other tax obligations, demonstrating a history of compliance."]
I kindly request that the IRS consider these extenuating circumstances and reconsider the assessment of the penalty. My goal is to resolve this matter fairly. Please feel free to contact me at [Your Phone Number] or [Your Email Address] for any additional information.
Thank you for your understanding and review.
Sincerely,
[Your Signature (if mailing a physical letter)]
[Your Typed Name]
IRS Audit Reconsideration Letter Sample: New Information After the Audit
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Department Address - As stated on your notice]
[IRS City, State, Zip Code]
Subject: Request for Reconsideration - New Information for Tax Year [Year] - Notice #[Notice Number]
Dear Sir or Madam,
I am writing to respectfully request a reconsideration of the audit findings for my federal income tax return for the tax year [Year], as per Notice #[Notice Number] dated [Date of Notice]. Since the conclusion of the audit, I have obtained new information that was not available or presented at that time, and which I believe significantly impacts the original determination.
The new information pertains to [clearly state what the new information is, e.g., "an amended tax return filed by a former business partner that affects shared income," or "a corrected Form 1099 from a financial institution that was issued after the audit concluded"].
I have attached the following supporting documentation related to this new information:
- [List specific documents, e.g., "A copy of the amended tax return from my former business partner."]
- [List specific documents, e.g., "The corrected Form 1099 from [Financial Institution Name]."]
- [List specific documents, e.g., "A sworn affidavit explaining the circumstances under which this new information was discovered."]
I believe that a review of this newly acquired evidence will demonstrate that the original audit adjustments were based on incomplete information. I am committed to ensuring my tax obligations are accurately met. Please contact me at [Your Phone Number] or [Your Email Address] should you require further details or assistance.
Thank you for your prompt attention to this important matter.
Sincerely,
[Your Signature (if mailing a physical letter)]
[Your Typed Name]
IRS Audit Reconsideration Letter Sample: Regarding an Unresolved Issue from the Audit
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Department Address - As stated on your notice]
[IRS City, State, Zip Code]
Subject: Request for Reconsideration - Unresolved Issue from Audit for Tax Year [Year] - Notice #[Notice Number]
Dear Sir or Madam,
I am writing to formally request a reconsideration of the IRS audit findings for my federal income tax return for the tax year [Year], as per Notice #[Notice Number] dated [Date of Notice]. I wish to draw your attention to a specific issue that I believe was not fully resolved or accurately addressed during the course of the audit.
The issue in question pertains to [clearly describe the unresolved issue, e.g., "the classification of certain income as business income versus investment income," or "the allowability of depreciation on a specific asset"]. During the audit, we discussed this matter, and I provided supporting documentation. However, the final assessment in the notice appears to have overlooked or not fully incorporated my arguments and evidence regarding this point.
To assist in your reconsideration, I am resubmitting the following relevant documents and information:
- [List specific documents, e.g., "My detailed explanation of why the income should be classified as business income, referencing relevant tax codes."]
- [List specific documents, e.g., "Documentation proving the business use of the asset for depreciation purposes."]
- [List specific documents, e.g., "Correspondence exchanged with the auditor regarding this specific issue."]
I respectfully request that you re-examine this particular unresolved issue, taking into full consideration the provided information and my explanations. My objective is to ensure that all aspects of my tax return are correctly assessed. Please contact me at [Your Phone Number] or [Your Email Address] if you require any further clarification.
Thank you for your dedicated review and consideration.
Sincerely,
[Your Signature (if mailing a physical letter)]
[Your Typed Name]
Receiving an IRS audit notice can be stressful, but remember that you have options. Utilizing an IRS Audit Reconsideration Letter Sample is your tool to ask for a second look when you believe something needs correction. By clearly stating your case, providing thorough documentation, and communicating politely and professionally, you increase your chances of a fair resolution. Always remember to keep copies of everything you send to the IRS for your own records.