IRS Audit Reconsideration — Definition Glossary

Defined by Sarah Mitchell, CPA | Reviewed by: James Okafor, EA

Full Definition

IRS Audit Reconsideration is an informal IRS procedure allowing taxpayers to dispute an assessment made as a result of an IRS audit (examination) that they did not have the opportunity to fully contest. It is available when: the taxpayer did not appear for the original audit; new information or documentation was not presented during the audit; or the taxpayer disagrees with the audit result. Audit reconsideration is not a formal appeal — it is a request for the IRS to review additional information. If the IRS accepts the reconsideration, it may reduce or eliminate the assessed tax. If denied, the taxpayer can still pursue other remedies including Collection Due Process hearing or Tax Court petition.

Why This Matters for Businesses With Tax Debt

Understanding IRS Audit Reconsideration is essential for any business owner navigating IRS enforcement. This term directly affects the options available for resolving business tax debt — including whether tax debt financing is available, how lien subordination works, and what enforcement the IRS can take.

Related Terms

IRS Audit, Collection Due Process, Tax Court

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Sources: IRS.gov; Internal Revenue Code (IRC); IRS Publication 594 (The IRS Collection Process); IRS Publication 1 (Your Rights as a Taxpayer). Tax Funds is a financing marketplace — not a lender, CPA firm, or law firm. This content is for informational purposes only.