I’m working on an Audit Reconsideration for a client and the records they have provided do not match up with the claims that they made on their return. Do I submit the records they have provided even though they do not match the totals on the return and let the IRS make the adjustments or do I go ahead and submit a 1040x using the amounts that they can “prove” with documentation and include an installment agreement request? The audit is for TY 2014 and has been closed with adjusted tax due totaling $54,091. What i can prove with a 1040x shows them only owing $12,000. I filed an extension for 2016 but it looks like they will owe $10,000 for 2016.
It is my understanding that the IRS does not require you to complete a special form. However, the IRS recommends that you include Form 12661, Disputed Issue Verification to explain the issues you disagree with.
Here is a link to Publication 3598 - Internal Revenue Service
You already stated that you are including documentation which must accompany the request documentation must accompany the Audit Reconsideration Request and right you are!
Take care and good luck!