There are two types of audit reconsideration. The type addressed in this article is for taxpayers who have been audited and dispute the accuracy of the audit findings. You thought your IRS Problems were over after your recent audit was concluded, right? Now you have received the results of the audit and you are in disagreement with the tax assessment the IRS has issued regarding your tax return. What do you do now?
In the year 2007 the IRS granted FULL relief to 71.07% of the underlying tax assessment in cases where a taxpayer requested audit reconsideration, according to the annual congressional report of the Taxpayer Advocate Service. Most taxpayers are aware that the IRS audits tax returns. These audits sometimes occur “in the field” requiring the taxpayer (and his or her representative) to meet with a revenue agent. The largest number of audits conducted by the IRS however are automated (by computer) or correspondence (by mail). Because there is little to no human interaction these automated and correspondence audits are plagued with inaccuracies.
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Has the IRS sent you a notice lately? A notice with a large liability due for a tax year that you know you didn't file a tax return for? They can do that. It's called a "Substitute for Return" or SFR. Internal Revenue Code Section 6020(b) says that when a taxpayer doesn't file a return, the IRS can prepare a return using what information that they have available to them. Usually this is just what forms 1099 and W-2 that were sent to the IRS. This doesn't really turn out well for most taxpayers. Tune in to the video post below to hear how I successfully took a taxpayers IRS Problem from a $200,000.00 liability to less than $600 using the audit reconsideration process. Now that's IRS help isn't it?