An Audit Reconsideration is the process the IRS uses to reevaluate the results of a prior audit where additional tax was assessed and remains unpaid, or a tax credit was reversed. If the taxpayer disagrees with the original determination he/she must provide information that was not previously considered during the original examination. It is also the process the IRS uses when the taxpayer contests a Substitute for Return (SFR) determination by filing an original delinquent return.
On March 6, 2017, Arnstein & Lehr LLP partner Robert E. McKenzie was published in a USA TODAY article called, “Your odds of facing an IRS audit are 1-in-143.”
In the article, Mr. McKenzie is quoted saying, “The significance is it’s a good time to be a tax cheat in this country.” The employment of revenue officers, revenue agents and special agents has dropped 30% since 2010, the last time the audit staffing had an increase.
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