Audit reconsideration: how to reopen a closed IRS audit

What is audit reconsideration?

Audit reconsideration is an IRS procedure that reopens a closed examination, or a substitute return the IRS prepared under Internal Revenue Code section 6020(b), so the IRS can look at evidence it did not consider before. It is described in Publication 3598, What You Should Know About the Audit Reconsideration Process.

It is not an appeal and it is not a court case. There is no filing fee, no special form is required, and it does not depend on meeting the 30-day or 90-day deadlines from the original audit. That is its main value: people who missed every letter can still get the numbers corrected.

The trade-off is that it is discretionary and paper-driven. The IRS reconsiders only what you prove with documents, one issue at a time. For where reconsideration fits among other audit remedies, see the IRS audit guide. If your balance came from an IRS substitute for return rather than an audit, the same process applies, and our guide on how to respond to an IRS notice covers the letters that usually come first.

When can I request audit reconsideration?

You can request audit reconsideration any time after the IRS has made an examination assessment and while the tax remains unpaid, according to Publication 3598. There is no fixed deadline, though the IRS still collects in the meantime unless it agrees to hold off.

Situations where the IRS accepts a request

• You did not attend the audit or did not answer the audit letters.
• You moved and never received the audit correspondence or the report.
• You have information the IRS has not considered before.
• You filed your own return after the IRS prepared a substitute return for you.
• You believe the IRS made a computation or processing error in the assessment.
• The liability is unpaid, or credits were denied.

Situations where the IRS will not reconsider

• You already agreed to the tax in a Form 906 closing agreement, an accepted compromise, or a Form 870-AD agreement with Appeals.
• The US Tax Court or another court has issued a final decision on the liability.
• The tax comes from final partnership item adjustments under the TEFRA partnership rules.

What counts as new information?

New information means documents for the tax year in question that the examiner never saw, not the same papers sent again or a stronger argument about the same evidence. Publication 3598 tells you to confirm your documentation is new and for the right year before you send it.

If the examiner already reviewed a document and rejected it, sending it again rarely changes the result. Publication 3598 notes that the IRS's explanation lists what you submitted and whether each item was accepted, so check that list first.

How to file an audit reconsideration request

An audit reconsideration request is a written letter, with copies of new documents and the examination report, sent to the IRS campus that did the audit or uploaded as your IRS notice directs. The steps below follow Publication 3598 and the IRS page on reconsideration of mail audits.

1. Get the examination report. Find the Form 4549 and explanation from the audit. If you never received it, request your account transcript for the year or ask the IRS for a copy.
2. Pick the issues. Mark each adjustment you dispute. Leave alone the ones you cannot support.
3. Gather new documents for each disputed issue and make photocopies. The IRS does not return originals.
4. Write the request letter, or use Form 12661, Disputed Issue Verification, to list each issue and why the adjustment is wrong.
5. Attach a copy of Form 4549 if you have it, and add daytime and evening phone numbers with the best time to call.
6. Send it to the campus address on your examination report, or use the Documents Upload Tool if your notice offers it. If you fax, put your taxpayer ID and tax year on every page.
7. Keep a complete copy and proof of sending, such as a certified mail receipt.

Audit reconsideration letter sample outline

There is no required wording. A clear request letter follows this structure, with one short paragraph per section:

• Heading: your name, address, taxpayer ID, tax year and the phrase Request for Audit Reconsideration.
• Reason: one sentence on why you qualify, for example that you moved and never received the audit letters.
• Issue list: each disputed adjustment, the amount the IRS changed and the amount you believe is correct.
• Evidence: which attached exhibit supports each issue, labeled Exhibit A, B, C.
• Request: ask the IRS to abate the tax, penalties and interest tied to the corrected items.
• Contact and signature: phone numbers, the best time to call and your signature and date.

Worked example: an audit disallowed $9,000 of dependent-related credits for 2023 because the taxpayer never answered. The request lists that one issue, attaches the child's school enrollment letter and pediatric records showing the taxpayer's address, and asks for abatement of the $9,000 and the related penalty and interest.

What happens after you submit it

Publication 3598 says to expect to hear from the IRS within 30 days of submitting the request, though the IRS page cautions it can take several months. You can check progress in your IRS online account or by calling the number on your letters.

• Collection may pause while the IRS reviews your documents, but it can restart if your records fall short and you miss a follow-up request by 30 calendar days.
• If you have an installment agreement, keep making the payments during review.
• The result is one of three letters: the tax is abated in full, reduced in part, or left unchanged.

If the tax is reduced, penalties and interest tied to that tax come down with it. If the answer leaves a balance you cannot pay, see the options to set up an IRS payment plan.

What if the IRS denies audit reconsideration?

If the IRS rejects the request or you disagree with the result, you can request a conference with the IRS Independent Office of Appeals, pay in full and file a formal refund claim, or do nothing and receive a bill. Reconsideration does not give you a new notice of deficiency, so it does not reopen the door to a Tax Court petition.

If reconsideration is closed to you and the balance is genuinely wrong, an Offer in Compromise based on doubt as to liability (Form 656-L) is another route Publication 3498 mentions.

What if I already paid the tax?

If you already paid the assessed tax in full, audit reconsideration is not available and you must file a formal refund claim on Form 1040-X, Amended U.S. Individual Income Tax Return. Publication 3498 says the same applies when reconsideration would produce a refund of payments you made.

Watch the refund deadline. The IRS says a claim is generally due by the later of three years from when you filed the return or two years from when you paid the tax, and the refund is limited to amounts paid within the matching look-back period. Someone who paid an audit bill in March 2025 generally has until March 2027 to claim that payment back.

If the IRS denies the refund claim, the next steps are an Appeals conference or a refund suit in a US District Court or the Court of Federal Claims, which both require payment first.