When taxpayers are audited, their tax returns and other financial filings are carefully examined to ensure that the correct amount of taxes are being paid to the state and/or federal government. At best, being audited is inconvenient, but it becomes much more serious if errors or oversights were made during the process. Taxpayers who suspect errors were made or who are unsatisfied with the results of their audits can get a second chance through a process known as audit reconsideration.
Audit reconsideration process
If you are a taxpayer who has not had a NOD (Notice of Deficiency) issued, you can request an audit reconsideration. An audit reconsideration allows your case to be examined by a new reviewer who will consider the circumstances of your case and any supporting documentation regarding the items in question before making a final determination.
During your audit reconsideration, the IRS will do the following:
- A forensic analysis of the return(s) in question to include substantiation of the expenses claimed
- A thorough review of the audit notification and assessment response from the taxing authority once the audit was reviewed and denied
- Review supporting case law to argue the denial of the items in the audit and submit along with substantiation for the audit reconsideration
Once the audit reconsideration process is complete and a final determination is made, the taxpayer still has three additional options if they are unsatisfied with the outcome:
- Tax Court: Taking your case to Tax Court is time-consuming, expensive, and can leave you with additional penalties if the decision is upheld by the Court.
- 656L: For IRS issues, you can file a 656L questioning the liability of the debt with another final submission of documents. For state issues, however, the liability option is not available as the state has already made their final determination. These filings are difficult to win.
- Resolution: Your attorney can negotiate a resolution on the assessed amount to prevent any further collection activity.
Professional tax audit help during an audit from a tax law attorney
Most taxpayers lack the highly specialized knowledge and skills required to properly respond to an audit. Worse, by attempting an audit alone, taxpayers can accidentally expose additional years to subsequent audits.
When you face an audit, you should never try to handle it yourself; instead, a seasoned tax law attorney can help you navigate the initial audit process as well as file a reconsideration if the audit contains errors.
Contact Key Tax Group for tax audit representation
An inaccurate audit could potentially cost you thousands of dollars. By filing for an audit reconsideration, you can ensure that your tax returns and supporting documentation were reviewed correctly before paying. At Key Tax Group, we specialize in audit reconsideration and have the expertise, applied experience, and know-how to ensure that you aren’t unfairly saddled with tax debt. To learn more about how our experienced tax professionals can protect you during an audit, contact our office today for a free initial consultation.