Summary
- An IRS appeal challenges an audit result before it becomes final, while audit reconsideration is used after the audit is closed.
- Appeals are time-sensitive and must be filed within strict deadlines, usually 30 days.
- Audit reconsideration is available when you have new information or documentation the IRS has not previously reviewed.
- Choosing the wrong option can delay resolution or limit your ability to reduce your tax liability.
If you disagree with the results of an IRS audit, you may have options. It’s important to remember that timing is everything.
The most common paths are filing an IRS appeal or requestion audit reconsideration.
While they sound similar, they apply at completely different stages during the process. Understanding the difference can determine whether you successfully reduce your tax debt or miss your opportunity entirely.
What Is an IRS Appeal?
An IRS appeal is your opportunity to challenge the results of an audit before they become final.
After an audit, the IRS typically sends a report explaining proposed changes. If you disagree, you can request a review by the IRS Independent Office of Appeals.
An IRS Appeal:
- Must be filed within a limited time frame (usually 30 days from your audit notice)
- Is handled by an independent division within the IRS
- Focuses on resolving disputes without going to court
- Does not require new evidence but strong documentation helps
The goal of Appeals is to settle disputes fairly based on the hazards or litigation, meaning they consider what might happen if the case went to court.
When to Use an Appeal
You should consider an appeal if:
- You disagree with the audit findings
- You have supporting documentation or legal arguments
- Your case is still within the appeal deadline
What Is Audit Reconsideration?
Audit reconsideration is used after an audit is closed, typically when:
- You missed the original audit
- You did not respond to IRS notices
- You now have documentation the IRS never reviewed
It allows the IRS to reopen your case and reconsider the outcome.
Key Features of Audit Reconsideration
- No strict deadline (but timing still matters)
- Requires new or previously unsubmitted information
- Often used when tax was assessed based on incomplete data
- Does not automatically stop collections
When to Use Audit Reconsideration
You may qualify if:
- You did not participate in your audit
- You have new records (receipts, bank statements, etc.)
- The IRS assessed tax you believe is incorrect
Key Differences Between Audit Reconsideration and Appeals
| IRS APPEAL | AUDIT RECONSIDERATION |
| Used before audit becomes final | Used after audit is closed |
| Strict deadline (usually 30 days) | No strict deadline |
| No new evidence required | Requires new or unreviewed evidence |
| Handled by IRS Appeals Office | Handled by IRS Examination |
| Can prevent assessment if successful | Attempts to reverse an existing assessment |
Which Option Is Right for You?
The right choice depends on where you are in the process.
- If you’re still within the deadline, an appeal is usually your best option.
- If you’ve missed the audit or deadline, audit reconsideration may be your only path.
Making the wrong choice can cost valuable time and limit your options.
Important Considerations
- Appeals are time sensitive. Missing the deadline can close that option permanently.
- Audit reconsideration requires proof. Without documentation, requests are often denied.
- Collections may continue during reconsideration unless action is taken.
- Strategy matters. The order and approach can affect your outcome.
Why Professional Guidance Matters
Both audit appeals and reconsideration involve more than simply disagreeing with the IRS.
A tax attorney can:
- Identify the strongest legal path based on timing
- Ensure deadlines are not missed
- Present your case with proper documentation
- Communicate with the IRS on your behalf
- Help prevent unnecessary collections
At McClure & Stewart, we help clients navigate audit disputes and choose the right strategy from the start.
If you are facing an audit issue, contact our office today to schedule a free consultation.
FAQs
Not at the same time. Appeals are used before a case is finalized. Reconsideration is used after. However, if you miss your appeal deadline, reconsideration may still be an option.
If you miss the deadline (typically 30 days), your case becomes final. At that point, audit reconsideration may be your only option to challenge the results.
Not automatically. You may need to request a hold on collections or pursue additional relief options. McClure & Stewart’s attorneys are experienced at securing collection holds.
It can take several months depending on the complexity of your case and IRS backlog.
Yes. The IRS generally requires new or previously unsubmitted documentation to reopen your case.
Neither is inherently better. Appeals are typically more favorable if you are still within the deadline. Reconsideration is useful when that window has passed.
Resources
- McClure & Stewart Audit Reconsideration
- What Triggers an IRS Audit Blog
- Audited By the IRS Blog
- IRS Appeals Overview
- IRS Appeal Rights
- IRS Publication 3598
MaKenna is the Administrative Assistant at McClure & Stewart Tax Resolutions, where she supports client communications and assists with day-to-day operations. Since joining the firm in March 2025, she has also contributed to the company’s marketing efforts, including writing blog content, managing social media, and helping coordinate advertising.
She is currently pursuing a degree in marketing, with a focus on content strategy and digital outreach. MaKenna is passionate about clear communication and helping clients feel informed and supported throughout the tax resolution process.