E-5. Request for audit reconsideration of a CP2000 or examination assessment

Use this model only when additional tax has already been assessed and you have information the IRS did not consider. Confirm the appropriate reconsideration procedure with the IRS. A newly received CP2000 is a proposal, not an assessment: use its response form, date and agree/disagree instructions instead of this letter. A statutory notice of deficiency has a separate Tax Court petition deadline that a reconsideration request does not extend. See CP2000 response guidance. Form 12661 may accompany an appropriate reconsideration request.

I am requesting audit reconsideration of the assessment of additional tax of $[amount] and penalty of $[amount] for tax year [year], made on [date] after [completion of the CP2000 proposal and deficiency process / examination], not merely upon receipt of a CP2000 proposal.

The assessment is based on [describe: the full proceeds of a stock sale reported on Form 1099-B being treated as gain / a Form 1099-R distribution that was a rollover / income reported on a Form 1099 that was already included on Schedule C line 1 / other]. The IRS did not have the following information when the assessment was made: [describe the documents].

With this information, the correct additional tax for [year] is $[amount, or zero], computed as follows: [one or two sentences].

I also request abatement of the accuracy-related penalty, because [the position was correct / I acted in good faith in reliance on the enclosed documents].

Enclosed: [brokerage statement showing cost basis; Form 5498 or rollover confirmation; corrected Form 1099; copy of the original return with the income highlighted; Form 12661].

[Signature]

Official notice sources

IRS CP2000 series instructions and Publication 5181: tax return reviews by mail. Follow current instructions and the deadline on your actual notice.