IRS Publication 3598 – IRS Forms, Instructions, Pubs 2026 – In the complex world of tax audits, disagreeing with the IRS’s findings can feel overwhelming. Fortunately, IRS Publication 3598, titled “What You Should Know About The Audit Reconsideration Process,” provides a clear pathway for taxpayers to challenge audit results. This guide breaks down the essentials of audit reconsideration, including eligibility, steps to request it, and what to expect. Whether you’re dealing with an unpaid tax assessment or new information that could change your case, understanding this process can help you navigate IRS disputes effectively. Updated as of its latest revision in November 2023, this publication remains a key resource for taxpayers in 2026.
What Is IRS Audit Reconsideration?
Audit reconsideration is an Internal Revenue Service (IRS) process designed to assist taxpayers who disagree with the outcome of an IRS audit on their tax return or a substitute return created by the IRS under Internal Revenue Code Section 6020(b). It’s essentially a second look at your audit results, allowing you to present new evidence or correct errors without immediately going to court.
This process is particularly useful if you’ve received an examination report (Form 4549) and believe the assessment is incorrect. Unlike a formal appeal, reconsideration is handled by the IRS’s examination division and can lead to adjustments in your tax liability if supported by new information. It’s a cost-effective option before escalating to the IRS Office of Appeals or Tax Court.
Reasons to Request Audit Reconsideration
You might qualify for audit reconsideration for several common reasons:
- You missed your original audit appointment: If you didn’t appear for the audit, this process gives you a chance to submit information retroactively.
- Undelivered IRS correspondence: If you moved and didn’t receive audit notices, reconsideration can reopen the case.
- New supporting documentation: Perhaps you have additional records, receipts, or evidence that wasn’t provided during the initial audit.
- Disagreement with the assessment: If you believe the IRS’s conclusions are wrong based on tax law or facts.
Reconsideration is only available if the tax liability remains unpaid or if credits were denied. If you’ve already paid the full amount, you’ll need to file a formal claim using Form 1040X (Amended U.S. Individual Income Tax Return) instead.
Eligibility Criteria for Audit Reconsideration
Not every case qualifies. The IRS will accept your request if:
- You’re providing new information not previously considered.
- You filed a return after the IRS prepared one for you.
- There’s a suspected computational or processing error by the IRS.
- The assessed tax is still unpaid.
However, requests are denied in these scenarios:
- You signed a closing agreement (Form 906), compromise, or Form 870-AD with Appeals.
- The liability stems from final partnership adjustments under the Tax Equity and Fiscal Responsibility Act (TEFRA).
- A court, such as the U.S. Tax Court, has already made a final determination on your tax liability.
Always check your specific situation against these criteria to avoid delays.
Step-by-Step Guide: How to Request IRS Audit Reconsideration?
Requesting reconsideration involves careful preparation. Follow these steps outlined in Publication 3598:
- Review Your Examination Report: Examine Form 4549 and related attachments to identify disputed items. Gather new, relevant documentation for the specific tax year.
- Prepare Your Submission: Write a clear letter explaining the changes you want considered. Use Form 12661 (Disputed Issue Verification) to detail disagreements. Attach copies (not originals) of your examination report and supporting documents. Include your contact information, including daytime and evening phone numbers.
- Submit Your Request: Mail or fax your package to the appropriate IRS campus address listed in your examination report or Publication 3598. Common campuses include Fresno, Memphis, Ogden, and Philadelphia, with toll-free numbers like 1-866-897-0177 for assistance. If faxing, include your Taxpayer Identification Number (TIN) and tax year on every page.
There’s no strict deadline for requesting reconsideration as long as the assessment is unpaid, but acting promptly is advisable to minimize interest and penalties.
What Happens After You Submit Your Request?
Once received, the IRS may request more information via letter. Provide complete details on each issue to strengthen your case. Collection activities might be paused, but they’ll resume if your documentation is insufficient and you don’t respond within 30 days.
After review, you’ll receive notification that:
- Your information was fully accepted, leading to an abatement (removal) of the tax.
- It was partially accepted, reducing the assessment.
- It was rejected, with no changes.
If you agree, proceed with payment options. If not, you can appeal to the IRS Office of Appeals, file a formal claim after full payment, or await a bill. The IRS aims to respond within 30 days, though processing times can vary.
Your Rights as a Taxpayer During Reconsideration
Publication 3598 emphasizes the Taxpayer Bill of Rights, ensuring fair treatment:
- Right to be informed, quality service, and pay only what’s due.
- Right to challenge IRS positions, appeal decisions, and retain representation.
- Rights to privacy, confidentiality, and a fair tax system.
If facing hardship, contact the Taxpayer Advocate Service (TAS) at 1-877-777-4778.
Payment Options If Reconsideration Doesn’t Fully Resolve Your Case
If taxes are still owed post-reconsideration, explore these options:
- Full Payment: Pay by check, money order, credit/debit card, or EFTPS.
- Installment Agreement: Make monthly payments based on your ability to pay, though interest and penalties accrue.
- Offer in Compromise (OIC): Settle for less if full collection is doubtful; use Form 656.
- Temporary Delay: If unable to pay, the IRS may pause collection while interest continues.
For more on collections, refer to Publication 594.
Resources for Help with IRS Audit Issues
- Taxpayer Advocate Service: For unresolved problems or hardships.
- Low Income Taxpayer Clinics: Free help if you qualify.
- IRS Website: Search for “audit reconsideration” on IRS.gov for forms and updates.
Frequently Asked Questions About IRS Audit Reconsideration
1. How long do I have to request audit reconsideration?
You can request it anytime after an assessment, as long as the tax is unpaid.
2. Do I need a specific form?
No, but Form 12661 is recommended to explain disputes.
3. What if my request is denied?
You can appeal or pay and file an amended return.
4. How long does the process take?
Expect a response within 30 days, but it may take longer.
5. Can I resubmit previously sent documents?
Only if it appears the IRS didn’t receive them initially.
Conclusion
IRS Publication 3598 empowers taxpayers to seek fairness in audit outcomes through the reconsideration process. By gathering solid evidence and following the steps, you can potentially reduce or eliminate disputed taxes. Always consult a tax professional for personalized advice, and stay updated via IRS.gov for any changes in 2026 and beyond. If you’re facing an audit dispute, starting with this publication could save you time and money.