What This Letter Means

Letter 693, Reply to Request for Reconsideration of Assessment, gives you the IRS examiner's decision on your request to reduce tax or penalties that are assessed but unpaid. A box on the letter shows the result: allowed in full, allowed in part, or disallowed. It usually comes with an exam report (Form 4549-A, or Form 4549 for an audit reconsideration) showing the figures and an explanation of any part that was denied.

The IRS uses this letter when:

  • You filed Form 843, 1040-X, or 1120-X asking to reduce an unpaid balance, not for a refund. The IRS calls that a request for abatement.
  • Your audit reconsideration of an unpaid assessment was denied because you didn't provide new information, didn't respond to the appointment letter, or missed the appointment.
  • You asked to remove certain penalties that carry no further appeal rights.

If It Was Allowed

Your balance goes down. An overassessment on the report reduces what you owe. It doesn't mean a refund check.

If It Was Denied

You have 15 calendar days to request a conference with the examiner's group manager. Use them.

Understand the limits. A disallowed request for abatement generally has no appeal rights beyond the group level and no court rights. Your path forward is to pay part or all of the disputed tax or penalty and file a timely claim for refund. A refund claim brings appeal rights and, if denied, the right to sue for a refund. Interest abatement is the exception; Tax Court can review a denied interest abatement request.

If the examiner found additional tax during the review, the IRS sends a 30-day letter instead, which gives you the opportunity to appeal.

What to Do

  • Read the explanation of what was denied and why.
  • If you disagree, call the examiner on the letter now and ask for a manager conference.
  • Bring documents that answer the stated reason for denial.
  • If the conference doesn't fix it, talk to a professional about paying and filing a refund claim before the refund deadline passes.

If your abatement request was denied and you want to keep fighting it, call us at (813) 229-7100.