IRS Audit Adjustment Dispute

What Audit Adjustments Mean

Audit adjustments are proposed changes to your tax return that result in additional tax, reduced refund, or other modifications. The IRS issues an examination report explaining the adjustments and giving you the opportunity to agree or disagree.

You have the right to dispute adjustments you believe are incorrect. The dispute process allows you to present additional evidence, explain errors in the IRS analysis, or request appeals review before the adjustments become final.

Reasons to Dispute Audit Adjustments

Common grounds for disputing adjustments:

• The IRS examiner misunderstood or misinterpreted your documentation
• You have additional evidence not previously submitted
• The IRS applied incorrect tax law or regulations
• Calculation errors in the proposed adjustment amounts
• The IRS disallowed properly substantiated deductions or credits
• New information has become available since the audit

Disagreement must be based on facts, documentation, or legal interpretation, not personal opinion about tax law fairness.

What NOT to Do When Disputing

• Do not agree to adjustments you believe are wrong just to end the audit
• Do not dispute without specific factual or legal basis
• Do not make new arguments without supporting documentation
• Do not miss the deadline to request appeals review
• Do not submit incomplete or vague disagreement statements
• Do not become confrontational with the examiner

How to Dispute Audit Adjustments

Follow these steps to dispute proposed adjustments:

• Step 1: Review the examination report carefully to understand each adjustment
• Step 2: Identify specific items you disagree with and the reason for disagreement
• Step 3: Gather additional documentation or legal authority supporting your position
• Step 4: Prepare a written response explaining each disputed item
• Step 5: Request appeals review if you cannot resolve disagreements with the examiner
• Step 6: Submit your response before the deadline stated in the examination report

If adjustments cannot be resolved at the examination level, the appeals process provides independent review of disputed items.

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