IRS Form 12661 & The IRS Audit Reconsideration Process

What is IRS Form 12661?

Form 12661 is a form that taxpayers can use to request an audit reconsideration for a return or claim that has already been audited.

The IRS will review the taxpayer’s claim and the evidence provided by the taxpayer, and if it agrees, it will issue a letter of determination. The letter will either allow the taxpayer to keep their original tax return or claim, or it will allow them to change their tax return or claim.

What is the IRS Audit Reconsideration Process?

The IRS Audit Reconsideration Process is a process that is used to request an IRS audit reconsideration.

The Internal Revenue Services summarizes the Audit reconsideration process as:

• “Audit reconsiderations are requests to reevaluate the results of an audit assessment when a taxpayer disagrees with the original audit determination and the additional tax has not been fully paid. If the tax has been full paid, then it is a claim.”

This process is used by taxpayers who disagree with the results of their audit. They can submit a request for an audit reconsideration to the Internal Revenue Service Office of Appeals.

The taxpayer must file Form 12661, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order). This form must be filed within 30 days of the date on the notice of determination letter from IRS Appeals.

What are the Reasons that Might Require You to File the IRS Form 12661?

As the IRS states, “You may request audit reconsideration if you:

• Did not appear for your audit

• Moved and did not receive correspondence from the IRS

• Have additional information to present that you did not provide during your original audit

• Disagree with the assessment from the audit”

Steps for Requesting an IRS Audit Reconsideration

The IRS recommends that you take the following steps.

Step 1:

Review the examination report and attachments to determine which items you feel are incorrect. Gather the documentation needed to support your position. Verify that the supporting documentation is new information that has not been presented before and ensure that it is for the tax year in question.

Your reconsideration request will be accepted if:

• You submit information that we have not considered previously.

• You filed a return after the IRS completed a return for you.

• You believe the IRS made a computational or processing error in assessing your tax.

• The liability is unpaid or credits are denied.

Note: If you have paid the amount due in full, you must file a formal claim (Form 1040X, Amended U.S. Individual Income Tax Return).

Step 2:

Make photocopies of the documents gathered above and attach to your letter explaining your request for reconsideration. Please ensure that you are clear as to which changes you want us to consider. Form 12661, Disputed Issue Verification, is recommended to explain the issues you disagree with. If available, attach a copy of your examination report, Form 4549, along with the new documentation that supports your position. Include a daytime and evening telephone number and the best time for us to call you.

Please do not send original documents – originals will not be returned.

Note: If you are faxing your documents, please include your identifying information (i.e., your TIN and tax year) on each page you fax. This is to ensure all pages are associated with your case.

The IRS will not accept your audit reconsideration request if:

• You previously agreed to pay the amount of tax you owe by signing an agreement such as a Form 906, Closing Agreement; a Compromise agreement; or an agreement on Form 870-AD with the Appeals office.

• The amount of tax you owe is the result of final partnership item adjustments under TEFRA, Tax Equity Fiscal Responsibility Act.

• The United States Tax Court, or another court, has issued a final determination on your tax liability.

Once your documentation is received

We will send you a letter if we need further information to reconsider your disputed issue(s).

It is in your best interest to provide complete information on each disputed issue. We consider each issue separately based on the new information that you provide. We will change any adjustment if your new information and the tax law support that change.

When we receive your documentation, we may delay our collection activity. However, we may resume collection activity if the documentation is not sufficient to support your position and you do not respond to any requests for additional information within 30 calendar days.

Note: If you currently have an installment agreement, you must continue to make payments. You may want to refer to Publication 1546, Taxpayer Advocate Service – Your Voice at the IRS, if you are experiencing economic hardship as a result of a tax problem.

We will notify you once we complete our review to inform you that:

• We accepted your information. If so, we will abate (remove) the tax assessed.

• We accepted your information in part and we will partially reduce the tax assessed.

• Your information did not support your claim and we are unable to eliminate the tax assessed.

Frequently Asked Questions about the IRS Audit Reconsideration Process:

1. How long do I have to file for audit reconsideration?

   An audit reconsideration request can be made anytime after an examination assessment has been made on your account and the tax remains unpaid.

2. Where do I send my reconsideration request?

   All reconsideration requests are first reviewed in the IRS campuses listed below. Please call one of the toll free numbers for the campus to obtain correct address. If a face to face meeting is necessary the campus will transfer to the office nearest you.

3. Do I need to complete a special form to request audit reconsideration?

   The IRS doesn’t require you to complete a special form, however, Form 12661, Disputed Issue Verification, is recommended to explain the issues you disagree with.

4. How long will it take before I receive an answer to my request?

   The IRS strives to timely handle all requests received. You should expect to hear from us regarding your reconsideration request within 30 days after submission.

5. Do I need to send proof with my request for reconsideration?

   Yes. In order to have your case reconsidered, documentation must accompany the request.

6. How do I know if the information I sent before was considered?

   When the examiners provide any explanations to you, a list of the documentation that you submitted will be included with an explanation as to if it was acceptable. If the list doesn’t include the documents that you submitted, you may need to resubmit that information.

7. Do I need to resend the information previously submitted?

   Under normal circumstances you do not. If for some reason it appears that the IRS didn’t receive previously submitted documentation, you may resubmit that information.

IRS Campus Contact Information

• Andover Campus Internal Revenue Service P.O. Box 9053 Stop 823 Andover, MA 01810-0953 Phone 1-866-897-0177

• Atlanta Campus Internal Revenue Service P.O. Box 47-421 Stop 54A Doraville, GA 30362 Phone 1-866-897-0177

• Austin Campus Internal Revenue Service P.O. Box 934 Stop 4103 Austin, TX 78767 Phone 1-866-897-0177

• Brookhaven Campus Internal Revenue Service P.O. Box 9005 Stop 611, Team 406 Holtsville, NY 11742 Phone 1-866- 897-0161

• Cincinnati Campus Internal Revenue Service CIRSC P.O. Box 308 Stop 8202 Covington, KY 41012 Phone 1-866-897-0161

• Kansas City Campus Internal Revenue Service P3 Stop 4200 Kansas City, MO 64999 Phone 1-866-897-0177

• Fresno Campus Internal Revenue Service P.O. Box 12067 Stop 82206 Fresno, CA 93776 Phone 1-866-897-0177

• Memphis Campus Internal Revenue Service P.O. Box 30086 Stop 8236 Memphis, TN 38130-0086 Phone 1-866-897-0161

• Ogden Campus Internal Revenue Service P.O. Box 9036 Stop 4440 Ogden, UT 84201 Phone 1-866-897-0161

• Philadelphia Campus Internal Revenue Service Exam Recon, M/S 4-E08-141 2970 Market Street Philadelphia, PA 19104 Phone 1-866-897-0161

For complete IRS documentation of this process, please refer to IRS Document P3598.

Know your Taxpayer Rights.