What This Letter Means

Letter 3338C, Audit Reconsideration Acknowledgement, responds to your request, or your call, about reopening the results of a closed audit. Audit reconsideration is the process the IRS uses when you disagree with an audit of your return, or with a return the IRS prepared for you because you didn't file.

The letter usually includes Publication 3598, What You Should Know About the Audit Reconsideration Process, and Form 12661, Disputed Issue Verification. It has paragraphs for the specific issues in dispute and tells you what documentation the IRS needs. The IRS also sends it when a reconsideration request arrives without supporting documents.

Important: collection activity on the balance continues until the IRS receives the documentation it asked for.

When Reconsideration Is Available

The IRS will generally accept a request if you submit information it hasn't considered before, you filed a return after the IRS prepared one for you, you believe the IRS made a computational or processing error, or the liability is unpaid or credits were denied. If you've paid in full, you file a formal claim (Form 1040-X) instead.

It won't be accepted if you signed a closing agreement, a compromise, or Form 870-AD with Appeals, or if a court already made a final determination of the tax.

What to Do

  • Review the audit report and pick out each item you disagree with.
  • Gather documentation that wasn't presented during the audit, for the correct tax year.
  • Complete Form 12661 to explain each disputed issue.
  • Attach a copy of your examination report (Form 4549) if you have it.
  • Send copies, not originals. Include a daytime phone number.
  • Submit the package the way the letter instructs and keep a full copy.

What Happens Next

The IRS looks at each issue separately. It can allow your request in full, allow part, or deny it. A denial comes on Letter 3340C. Complete documentation the first time is your best shot.

If you need an audit reopened and the balance is pushing you toward collection, call us at (813) 229-7100.