Audit Process

[Jesse]

Client received a letter last December disallowing deduction for HofH and a dependent. We gathered info and submitted proof that was requested - a plethera of info at that - and returned notice w/ disagree box checked.

First week in Feb received notice of deficiency dated 2/5/08, if want to contest determination we need to Petition Tax Court. A letter dated 2/8/08 came a couple days later "please accept our apology for not being able to review your response. We are still reviewing your response and will reply by 2/18/08. We haven't heard anything more.

Do you think the notices crossed in the computer? Is that it - no questions asked, denial of everything, take it to court.

[bertrans]

The notices may very well have crossed in the mail.

Some data:

First, the notice of deficiency gives, as required by law, the taxpayer 90 days to petition tax court.

Secondly, the TP can also respond to the audit directly, without tax court.

Thirdly, call the contact number, ask the examiner if your corresdpondence has been received. If the answer is yes, it will be reviewed and either accepted or denied; if it is denied, your client still may go to tax court by the prescribed date.

If the examiner says 'no record that we received anything from you' - take a deep breath and resubmit ASAP, by fax if possible.

You are not out of options by a long shot. Hope this helps.

[DaveO]

I have just such a situation going

Six months after the request for Audit reconsideration I'm finally getting an appeals conference Monday. I have been through 3 different service centers and finally got it in my District.

An IRS appeals officer once told me, "When in doubt request a Collection Due Process Hearing". This will get you to someone who halfway knows what they are doing.

What Betrans said is correct. My experience has been that they will reject the information and you will need to go to appeals. The procedure is outlined in the information they send, it's no big deal to apply. Once you go to appeals you will have a telephone conference with the appeals officer. This is the time to be prepared maybe have the client in the room and go to speaker phone.

[Jesse]

Six months after the request for Audit reconsideration I'm finally getting an appeals conference Monday. I have been through 3 different service centers and dinally got it in my District.

What is the process for an audit reconsideration?

[bertrans]

What is the process for an audit reconsideration?

Here's the basics:
- the return was audited; assessment was made; it doesn't matter if the assessment has been paid or not for purposes of a reconsideration. If Collections starts dunning you, call them , state that you are requesting a reconsideration, and request a stay to their actions;

- review the audit report: decide what you're going to refute and how; attach the relevant documentatuion; attach, on top, a cover letter requesting a reconsideration.

- mail that to the Examination Branch where the audit was done.

- and then we see what happens.

Note: if you pay the amount of the deficiency, you are legally able to file a claim for the amount paid (provided the reconsideration is approved) up to 2 (two) years after the date of the payment.


At present, there is no legal limit to the number of times you can request a reconsideration,.