There are circumstances where the IRS records a in excess of the amount of tax that is actually owed. This may happen when an IRS audit is closed prematurely or the IRS makes adjustments to tax accounts without the taxpayers participation.
The IRS has the ability to reduce taxes that are assessed in excess of the amount of tax that is actually owed in these cases. The IRS usually makes these corrections when the taxpayer files an amended tax return. Unfortunately, there is a limited time period for filing an amended tax return.
The audit reconsideration request is a process for making these corrections after the time period for filing an amended tax return has expired (technically, it can be used prior to this time too but taxpayers often prefer to file amended tax returns in those situations).
The IRS has a special unit for handling these requests. These requests are not easy to get approved, but if they are, the tax liability and any penalties and interest computed based on the tax liability will also be recomputed retroactively.
We can help you with this. We advise clients on amended tax return and audit reconsideration issues daily.
Please contact us immediately if the IRS has made changes to your tax account and the tax liability is in excess of the correct amount owed.