Most people are unaware that there are 5 types of audit reconsideration’s.
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Types of Reconsiderations –
Audit, Automated Underreporter, Substitute For Return (SFR) and Automated Substitute For Return (ASFR)
1. There are five distinct types of reconsiderations based on the type of assessment:
A. Audit Reconsideration.
An Audit Reconsideration is a process 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.
B. IMF-AUR Reconsideration is a claim for a credit or refund not previously reported or allowed, or a request for abatement of tax, penalty, and/or associated interest.
An underreported (UR), condition exists when there is income reported to IRS by payors that was not reported by the taxpayer on Form 1040, Form 1040A, Form 1040EZ, or Form 1040NR. Proposed tax adjustments are based on these UR amounts, as well as on reported income amounts for which the taxpayer failed to include the required additional taxes (e.g., Self-Employment tax.
C. BMF-AUR Reconsideration is a claim for a credit or refund not previously reported or allowed, or a request for abatement of tax, penalty, and/or interest.
BMF-AUR cases are built from two primary sources:
1. The Business Master File (BMF) which contains information reported to the IRS by taxpayers, and,
2. The Information Return Master File (IRMF) which contains information submitted by payers. The BMF file contains information reported on Form 1120, U.S. Corporation Income Tax Return, and Form 1041, U.S. Income Tax Return for Estates and Trusts.
D. SFR Reconsideration.
The SFR program is a non-filer or return delinquency program for individual and individual business non-filers who are identified via matching programs. IRS computes tax, penalty and interest using the Information Reporting Program (IRP) data and other internally available information and assesses under IRC 6020(b).
A reconsideration of SFR is an original filing of a tax return by the taxpayer requesting a decrease or increase of tax, and any associated penalty and/or interest.
E. ASFR Reconsideration.
The ASFR program is an automated non-filer or return delinquency program for individual and individual business non-filers who are identified via matching programs.
IRS computes tax, penalty and interest using the Information Return Program (IRP) data and other internally available information and assesses under IRC 6020(b).
A reconsideration of ASFR is an original filing of a tax return by the taxpayer requesting a decrease or increase of tax, penalty, and interest.
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