IRS Support
Afintrix Advisory Analytics uses this interaction resource to support audits, post-audit reconsiderations, and enforced collection cases where correspondence, deadlines, rights, and appeal channels must be documented precisely against IRS procedures.
This page provides guidance on audits by mail and in person, audit reconsiderations, levies, and liens so examination findings, collection actions, and appeal rights are handled in a structured, defensible way across engagements.
Audits by Mail
This section preserves IRS and TAS guidance on examination by mail and the steps in Publication 3498-A.
Overview
Most of the time, the IRS accepts tax returns as filed, but some returns are selected for additional review (audit) to determine whether income, expenses, and credits were reported accurately.
The IRS sends a letter to notify you of a mail audit, telling you which part of the return is being examined, what information you must provide, and other details about the audit.
Audit by mail process
The IRS conducts audits in two ways: by mail or in person; this section addresses audits by mail where the IRS sends a letter explaining that the return was selected for examination and identifying the items under review, along with what documentation you must provide, where to send it, and who to contact with questions.
Publication 3498-A, The Examination Process (Audits by Mail), describes the steps:
Step 1: The IRS sends a letter informing you that you have been selected for an audit and listing what information you need to send.
Step 2: You read the letter, follow the instructions, and submit all requested documentation by the due date; if you do not understand, you call the number on the letter.
Step 3: The IRS reviews your documentation and contacts you if more information is needed.
Outcomes after review
After the review is complete, the IRS can:
Accept the original tax return as filed and send a letter; in that case, the process is finished.
Propose an adjustment to the return.
If the IRS proposes an adjustment and you agree, you sign and return the enclosed form by the due date; if you do not agree and have submitted all documentation, you can request a telephone conference with an examiner; if agreement is still not reached, you can request a conference with a manager or request that the case be sent to Appeals.
If agreement is reached at conference or in Appeals, you sign and return the report by the due date; if agreement is not reached or you do not respond, the IRS sends a Statutory Notice of Deficiency by certified mail, giving you 90 days (150 days if your address is outside the United States) from the notice date to petition the U.S. Tax Court without paying the tax; if you do not petition, the IRS assesses the tax.
What you should do
Read the letter and follow the instructions; the letter and attachments list the information you must gather, and you contact the examiner listed in the letter with questions.
Ensure any proposed date and time in the letter are convenient; if not, contact the examiner before the proposed appointment to discuss rescheduling.
If you agree with proposed changes
Sign the agreement page and return it to the IRS; if you owe additional tax, penalties, and interest, pay as soon as possible to limit interest charges; if you cannot pay in full, consider payment arrangements or contact the IRS to discuss options.
If proposed changes produce a refund, you generally receive it in six to eight weeks provided there is no other unpaid tax debt or other debt the IRS collects, such as past-due child support or student loans.
If you do not agree with proposed changes
Do not sign the agreement; respond to the IRS by the due date on the letter, which can involve sending additional documentation or an explanation supporting your position, and if you need more time to respond you call the number on the letter before the due date to request additional time.
If the examiner still proposes changes, you can request an informal conference with the examiner’s manager before the response date in the letter or request a conference with the IRS Office of Appeals before the date in the letter, in writing, stating your reasons for disagreement.
Effect on you
If you do not respond by the due dates in the letter, the IRS can disallow what you claimed on the return and issue a Statutory Notice of Deficiency, which is a legal notice proposing an additional deficiency (balance due) and giving 90-days (150 days outside the U.S.) to petition the U.S. Tax Court; the 90 or 150-day deadline cannot be extended and does not count a Saturday, Sunday, or legal holiday in the District of Columbia as the last day.
United States Tax Court and the IRS Office of Appeals are described as “prepayment forums,” which allow you to dispute proposed adjustments before assessment and payment; there are filing fees to petition the Tax Court, and you can request a waiver if you cannot afford them.
Audits in Person
This section preserves procedures and rights for in-person examinations.
What You Need to Know
As with mail audits, the IRS generally accepts returns as filed but selects some for examination to determine whether income, expenses, and credits were reported accurately; selection does not automatically indicate an error.
Once the IRS completes an examination, it can accept the return as filed or propose changes that affect tax due (deficiency) or any refund amount.
Audit venues and notice
In-person examinations can take place at your home, your business, an IRS office, or the office of your attorney, accountant, or enrolled agent; if the time or place on the notice is not convenient, the examiner will try to accommodate you.
When your return is selected for audit, the IRS notifies you by mail and sometimes follows up by phone about the notice; the notice states what part of the return is being examined, what information you must provide, and other audit details.
What you should do
Read the letter and follow the instructions; gather the listed documents and contact the examiner if you have questions or are unsure what to provide, and confirm the proposed date and time are workable or request a change before the appointment if needed.
During the examination
You, the examiner, and your representative (if you have an attorney, accountant, or other eligible representative) meet for an initial interview about financial history, business operations, and books and records that are not available from other sources; questions are used to understand the records you provide.
The interview can be suspended at any point if you want professional assistance or need to speak with your representative; if your business is under audit, the examiner can ask to tour the business to understand operations.
You are expected to organize your records to help speed review; if the examiner needs more information, you will receive a written request for additional documents.
Managing the examination
If you have questions about how the examination is conducted, you can ask the examiner or ask to speak with the examiner’s manager.
You can seek professional assistance from an attorney, certified public accountant, or enrolled agent, and you can check whether you qualify for help from a Low Income Taxpayer Clinic.
Outcomes and effect on you
After the initial review, the IRS can accept the return as filed, ask for more information, or propose changes; if documentation is not accepted, you receive a letter explaining the proposed changes.
If you agree with all proposed changes, you sign the agreement page and pay any additional tax, penalties, and interest as soon as possible, or contact the IRS to discuss payment options; if the changes result in a refund, you generally receive it in six to eight weeks if there are no other obligations the IRS collects.
If you do not agree with some or all changes, you do not sign, respond by the letter due date with additional documentation or explanation, and if more time is needed you call before the due date; if the examiner still proposes changes, you can request an informal conference with the examiner’s manager or a conference with the IRS Office of Appeals.
If you do not respond by the due dates, the IRS can disallow what you claimed and issue a Statutory Notice of Deficiency with 90-day or 150-day Tax Court petition deadlines, subject to the same non-extendable rules described for audits by mail.
Audit Reconsiderations
This section preserves the TAS description of audit reconsideration and related limits.
Overview
Audit reconsideration is a process that reopens an IRS audit; you can request it when you have new information about the audit of income or expenses, when you disagree with the tax the IRS says you owe, when you did not appear for the audit or send information, or when you moved and did not receive the audit report.
When you cannot request reconsideration
You cannot request audit reconsideration if:
• You already paid the full amount owed; in that situation, you must file a formal claim for refund using Form 1040-X, Amended U.S. Individual Income Tax Return.
• You previously agreed to pay the amount owed by signing an agreement such as Form 906, Closing Agreement; an offer in compromise agreement; or an agreement on Form 870-AD, Offer to Waive Restrictions on Assessment and Collection of Tax Deficiency and to Accept Overassessment, with the Office of Appeals.
• The U.S. Tax Court or another court issued a final determination that you owe the tax.
For partnerships, you cannot request audit reconsideration on an issue that has been finally determined through an IRS administrative adjustment or under an agreement with the IRS.
What you should do
The IRS typically mails an audit report (examination report) within a few weeks after an audit; it explains proposed changes; you review the entire report and attachments to identify items you consider incorrect.
If you do not have the report, you call the IRS toll-free help line at 800-829-1040 to request a copy or set up an appointment at a local Taxpayer Assistance Center.
Representation and documentation
You can hire an attorney, certified public accountant, or enrolled agent to represent you; if you qualify, a Low Income Taxpayer Clinic can provide free or low-cost representation.
You gather documentation to support your position and ensure it is new information not previously submitted and that it relates to the tax year examined.
Submitting the reconsideration request
You send your request for audit reconsideration to the office that last corresponded with you; no special form is required, only a letter explaining your request, clearly identifying the changes you want the IRS to consider.
You include a copy of your audit report, Form 4549, Income Tax Examination Changes, if available, and copies (not originals) of new documentation that supports your position.
If you have an installment agreement, you continue making payments during the reconsideration process.
IRS response and effect on you
You should expect to hear from the IRS about your reconsideration request within about 30 days; the IRS will send a letter if more information is needed and will notify you when the review is complete.
You cannot request audit reconsideration if:
• Accept your information and abate (remove) the tax previously assessed.
• Accept your information in part and partially reduce the tax.
• Conclude that your information does not support your claim and leave the prior assessment in place.
If you agree with the reconsideration results, you pay any remaining balance, using available payment options if you cannot pay in full; if you disagree, you can request a conference with the Office of Appeals and be represented, or you can pay the balance and then file a claim for refund using Form 1040-X.
Levies
This section preserves TAS guidance on IRS levies, the Federal Payment Levy Program, levy release and return rules, and appeal rights.
Overview
If you have a tax debt, the IRS can issue a levy, which is a legal seizure of property or assets to satisfy the debt; a levy differs from a lien, which secures the government’s interest in property.
Types of levies and scope
Some levies have a one-time effect: for example, a bank account levy takes what is in the account when the bank receives the levy, and the IRS must issue another levy to reach later deposits.
Other levies have a continuous effect and remain in place until the IRS releases the levy or the debt is paid in full; wage levies and certain federal payment levies fall into this category.
A wage levy can take a portion of each paycheck until release or full payment; by law, a portion of wages is exempt based on filing status, additional standard deduction, and dependents, and the employer uses Form 668-W, Statement of Exemptions and Filing Status, to compute the exempt amount.
Federal Payment Levy Program
Other assets that IRS can levy are state tax refunds and payments you are to receive from clients (accounts receivable).
For each tax and period, the IRS is generally required to notify you before first collection by levy and will send a Notice of Your Right to a Collection Due Process Hearing (CDP).
What you should do
To avoid levies, you do not ignore IRS notices; notices state how to prevent levy actions and who to contact; you call the number on the notice as soon as possible and keep your address up to date with the IRS so you receive all correspondence.
If you dispute the tax or seek alternatives
If you believe you do not owe the tax, you respond to the notice, explain why, and be prepared to provide supporting information, such as examination reports or notices explaining the tax; you can ask the IRS to delay enforcement while you gather information and request that it explain the basis for the assessment.
If you want another way to pay the tax debt, you can propose collection alternatives such as an installment agreement or an offer in compromise, and you may need to provide financial information on income, expenses, and assets.
Levy release
The IRS must release a levy if it determines that:
• The amount owed is paid.
• The collection period ended before the levy was issued.
• Release will help you pay your taxes.
• You enter into an installment agreement and its terms allow release.
• The value of the property exceeds the amount owed and releasing the levy does not hinder collection.
• The levy creates economic
hardship, meaning you cannot meet basic, reasonable living expenses.
If a levy is causing hardship, you contact the IRS at the number on the levy or notice immediately; IRS Collection Financial Standards and a financial statement are often used to establish hardship.
If you are in bankruptcy, IRS levy authority can be limited; you contact the IRS and provide the bankruptcy chapter, filing date, court, and case number, and be prepared to propose an alternative payment method.
If IRS collection systems are not working
If you experience financial hardship and cannot resolve the issue with the IRS, or if repeated attempts to contact the IRS produce no response or missed response dates, or if you believe an IRS system or procedure is not working properly, you contact the Taxpayer Advocate Service.
Return of levy proceeds
If the IRS issues a levy in violation of law, it will return the proceeds; even when the levy was not unlawful, IRS can return proceeds when:
• The levy was premature or not in accordance with administrative procedures.
• You now have an installment agreement covering the liability on the levy and the agreement does not state otherwise.
• Returning the payment will assist collection.
• With your or the National Taxpayer Advocate’s consent, returning the payment is in your and the government’s best interest.
You must request return of levy proceeds within the applicable time limit; for wage levies served on or after March 23, 2017, you generally have two years from the date the employer received the wage levy to request return, and special earlier deadlines applied to older levies.
Special levy rules and appeals
If you paid bank charges due to an IRS levy error, you can request reimbursement using Form 8546, Claim for Reimbursement of Bank Charges.
For FPLP levies, the IRS can return proceeds that were collected up to two years before your request.
Before first levying property, the IRS generally issues a Notice of Your Right to a Collection Due Process (CDP) Hearing; you have until the date on the notice to request a CDP hearing with the IRS Office of Appeals, where you can raise issues such as alternative ways to pay and, in some cases, contest the debt.
After the CDP hearing, Appeals issues a determination; if you disagree, you have 30 days to seek review in the U.S. Tax Court; if the CDP request is not timely, you can request an Equivalent Hearing within one year, but you cannot go to court if you disagree with that decision.
If a CDP notice already issued for that tax debt, you can still request a hearing under the Collection Appeals Program (CAP) before or after levy; CAP decisions cannot be taken to court; Publication 1660, Collection Appeal Rights, explains CDP and CAP.
Additional levy-related points
You can informally ask an IRS manager to review your case by asking the employee listed on the notice; IRS employees must provide their manager’s name and phone number.
If you need representation, you can hire an attorney, CPA, or enrolled agent, or, if income qualifies, seek assistance from a Low Income Taxpayer Clinic.
If tax being levied results from an audit you did not know about, did not participate in, or disagree with, you can consider audit reconsideration; if the tax comes from a joint return and you believe your current or former spouse should be solely responsible, you can seek Innocent Spouse relief under IRS rules.
Effect on you
Even if the IRS releases a levy, you still owe the debt until it is paid or until it is no longer collectible by law; IRS normally has ten years from the assessment date to collect.
For joint returns, both spouses are responsible for the entire liability even if no longer married; in community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin), different rules apply, and levy can reach up to one-half of income or property value to collect a spouse’s tax; you check state law for details.
The IRS cannot levy to collect the individual shared responsibility payment for failing to maintain minimum essential health coverage under the Affordable Care Act.
Liens
This section preserves TAS guidance on federal tax liens, Notices of Federal Tax Lien, withdrawal, discharge, and subordination.
Overview
A lien differs from a levy: a levy takes property or assets, whereas a lien secures the government’s interest in property; a federal tax lien is a legal claim to property such as real property, securities, and vehicles, including property acquired after the lien arises.
If the IRS files a lien against a business, it attaches to all business property and rights to business property, including accounts receivable; Publication 594, The IRS Collection Process, describes the overall collection process.
How a federal tax lien arises and NFTL filing
A federal tax lien arises automatically if you do not pay after the IRS assesses the liability and sends a bill; the government can then file a Notice of Federal Tax Lien (NFTL) in public records.
An NFTL notifies creditors that the IRS has a claim against all current and future property; while NFTLs no longer appear on credit reports, they can still affect credit if potential creditors check public records.
CDP rights and lien duration
Within five business days after filing an NFTL, the IRS generally sends a Notice of Your Right to a Collection Due Process Hearing; you have until the date on the notice to request a CDP hearing with Appeals, where you can propose other payment methods and sometimes contest the debt.
Once a lien arises, the IRS generally will not release it until tax, penalties, interest, and applicable fees are paid in full or until the IRS is no longer legally able to collect; in some circumstances, the lien can be withdrawn, discharged, or subordinated.
What you should do
You do not ignore IRS notices; even if you cannot pay in full, responding before the due date can prevent additional problems; you keep your address current with IRS so you receive all notices and letters.
If you cannot pay the full amount, payment options exist to settle the debt over time; if you disagree that you owe the debt, you can raise arguments in a CDP hearing or request audit reconsideration; you can also obtain representation from an attorney, CPA, or enrolled agent, and may qualify for LITC representation if income is below certain levels.
Withdrawal, discharge, subordination
The IRS can withdraw an NFTL under Internal Revenue Code section 6323(j) if certain criteria are met; withdrawal removes the public notice but does not eliminate the underlying debt.
NFTL withdrawal is possible when:
• You entered into a payment agreement to satisfy the liability, unless the agreement states otherwise.
• For certain taxes, you entered into a direct debit installment agreement and meet other conditions.
• Withdrawal will help you pay taxes more quickly.
• The IRS did not follow proper procedures.
• The lien was filed during a bankruptcy automatic stay, when most collection activity stops.
• It is in your best interest, as determined by the Taxpayer Advocate, and in the government’s best interest, for example when the debt is satisfied and you request withdrawal.
If you fully paid your tax debt or an accepted Offer in Compromise (and any collateral agreement) and the lien was released, you can ask in writing for the lien to be withdrawn; the IRS generally grants this if you filed all required returns for the past three years and are current on estimated tax and federal tax deposits.
You can apply for withdrawal using Form 12277, Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (Internal Revenue Code Section 6323(j)).
Withdrawal, discharge, subordination
A “discharge” removes the lien from specific property; for example, if you want to sell property under lien and intend to use proceeds to pay your tax debt, you can apply for a Certificate of Discharge; Publication 783 describes the discharge process.
A “subordination” does not remove the lien but allows other creditors to move ahead of the IRS, which can facilitate loans or refinancing; Publication 784 describes how to apply for a Certificate of Subordination of Federal Tax Lien.
Effect on you
When the IRS files an NFTL in public records, creditors are on notice of the IRS claim and your ability to obtain credit can be limited.
The lien attaches to all personal and business assets, such as real estate, securities, and vehicles, and to assets acquired while the lien is in effect, including business accounts receivable.
If you file bankruptcy, the tax debt and lien can continue after bankruptcy, subject to applicable bankruptcy and tax law.
Important Notes
These statements emphasize deadlines, rights, and interactions that have material effect under the examination and collection procedures above.
These statements emphasize deadlines, rights, and interactions that have material effect under the examination and collection procedures above.
Audit reconsideration is not available when the tax is fully paid, when closing or compromise agreements are in place, or when a court has issued a final determination; in those situations, the remedy is a refund claim on Form 1040-X.
Levies can be one-time or continuous; wage and certain federal payment levies continue until release or full payment, and FPLP can reach up to 15 percent of Social Security and other federal payments.
CDP and CAP provide structured appeal routes for both levies and liens; CDP determinations can lead to Tax Court review if timely requested, while CAP determinations cannot.
Liens arise automatically after assessment and billing, and NFTL filings place public notice of the IRS claim; withdrawal, discharge, or subordination require specific criteria and often formal applications and publications referenced above.
Official References
Authoritative IRS sources and related regulatory references.
- Internal Revenue Service
- Publication 3498 A, The Examination Process (Audits by Mail): https://www.irs.gov/pub/irs-pdf/p3498a.pdf
- Publication 3498, The Examination Process: https://www.irs.gov/forms-instructions-and-publications?find=3498
- Publication 594, The IRS Collection Process: https://www.irs.gov/pub/irs-pdf/p594.pdf
- Publication 1660, Collection Appeal Rights: https://www.irs.gov/pub/irs-pdf/p1660.pdf
- Form 4549, Income Tax Examination Changes: https://www.irs.gov/pub/irs-pdf/f4549.pdf
- Form 1040 X, Amended U.S. Individual Income Tax Return (and filing guidance): https://www.irs.gov/filing/file-an-amended-return
- Form 668 W, Notice of Levy on Wages, Salary, and Other Income / Statement of Exemptions and Filing Status: https://www.irs.gov/pub/irs-pdf/f668w.pdf
- Form 8546, Claim for Reimbursement of Bank Charges: https://www.irs.gov/pub/irs-pdf/f8546.pdf
- Form 12277, Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien: https://www.irs.gov/pub/irs-pdf/f12277.pdf
- Publication 783, Instructions on How to Apply for a Certificate of Discharge From Federal Tax Lien: https://www.irs.gov/pub/irs-pdf/p783.pdf
- Publication 784, Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien: https://www.irs.gov/pub/irs-pdf/p784.pdf
- Innocent Spouse Relief overview: https://www.irs.gov/individuals/innocent-spouse-relief
- Taxpayer Advocate Service
- Audits by Mail (TAS page reflecting this content): https://www.taxpayeradvocate.irs.gov/get-help/interacting-with-the-irs/audits-by-mail/
- Levies: https://www.taxpayeradvocate.irs.gov/get-help/interacting-with-the-irs/levies/
- Levy / Seizure of Assets: https://www.taxpayeradvocate.irs.gov/notices/levy-seizure-of-assets/
- Collection Station – Collection Actions: https://www.taxpayeradvocate.irs.gov/notices/collection-station-collection-actions/
- Taxpayer Advocate Service – main site: https://www.taxpayeradvocate.irs.gov
- Low Income Taxpayer Clinics
- Low Income Taxpayer Clinics (LITC) – overview: https://www.irs.gov/advocate/low-income-taxpayer-clinics
- Publication 4134, Low Income Taxpayer Clinic List: https://www.irs.gov/pub/irs-pdf/p4134.pdf
- Social Security Administration / FPLP
- Federal Payment Levy Program description (SSA POMS): https://secure.ssa.gov/poms.nsf/lnx/0202410305
- United States Tax Court
- U.S. Tax Court official website: https://www.ustaxcourt.gov
