Paying your tax debt, in full, is the best way to get rid of a federal tax lien. The IRS releases your lien within 30 days of paying your tax debt. Don't you agree with an Internal Revenue Service (IRS) audit and the additional tax the IRS says it owes as taxes? You can request auditing reconsideration under certain circumstances authorized by Internal Revenue Code 6020 (b). The request for reconsideration can help you resolve disputes you may have with the findings of the IRS or with a tax return filed on your behalf by the IRS.
Learn more about the IRS auditing reconsideration process, how, when, and where to submit and audit a request for reconsideration, the documentation required, and what happens next. The amount of taxes you owe is the result of the final adjustments to the partnership items under TEFRA, the Tax Equity and Fiscal Responsibility Act. You can request reconsideration of an audit at any time after the IRS has evaluated a deficiency or auditing evaluation for a particular tax year and before your tax bill has been paid in full. If you agree with the denial, you can send full payment on your tax debt to avoid additional interest and penalties, or request an installment agreement to pay your tax debt.
Reconsidering an audit is a comprehensive solution for people who didn't file their tax returns, under Internal Revenue Code 6020 (b), or for people who disagree with an IRS audit of their tax return, explains Lyle Solomon, attorney and financial expert at Oak View Law Group in Rocklin, California. The United States Tax Court has issued a final ruling, or another court has issued a final ruling on your tax liability. In addition, requests for auditing reconsideration for older fiscal years seem to take longer to process than requests for more recent fiscal years, Lyon says, adding that, in the worst case scenario, the waiting time can range from eight to 12 months. When the IRS conducts an audit or performs an income tax examination, the agency can determine the tax liability and penalties, possibly based on inaccurate or incomplete information available to them.
A federal tax lien is a legal demand by the government against your property when you neglect or fail to pay a tax debt. In addition, in order to request reconsideration of an audit, it will be necessary that the tax return in question has already been filed, that the additional taxes you owe have not been paid, and that you can clearly state what part of the audit is in dispute.