What audit reconsideration means
Audit reconsideration is an administrative IRS process that can reopen review of a closed examination assessment. It is commonly used when the taxpayer did not participate, did not receive correspondence after moving, has new evidence, disputes an unpaid assessment, had a credit disallowed, or identifies a computational or processing error.
It is not the same as an audit appeal
An examination appeal generally challenges proposed changes while the notice still offers a protest or court route. Audit reconsideration addresses certain assessments after the examination has closed. Using reconsideration should not cause a taxpayer to miss a current Appeals or Tax Court deadline.
It is not an amended return
If the audit assessment was paid in full, IRS Publication 3598 directs an individual toward a formal refund claim, commonly Form 1040-X when appropriate. Audit reconsideration is generally for an unpaid assessment or denied credit. Refund claims have separate limitation rules.
New information is central
The request should identify each disputed adjustment and include evidence the IRS did not previously consider. Form 12661 is recommended, not mandatory, for organizing the disputed issues. Form 4549 and the examination report help connect the request to the original audit.
Collection is a separate issue
The IRS may delay collection after receiving reconsideration documentation, but the process does not automatically suspend collection. Existing installment-agreement payments should continue, and collection notices may require separate action.
Practical example
A taxpayer moved, did not receive the correspondence-audit requests, and later receives a bill after deductions were disallowed. The taxpayer obtains the examination report, organizes new records by adjustment, and sends an audit reconsideration request to the correct IRS channel. The IRS—not WhatDoIFile—decides whether to reopen and change the assessment.