IRS Letter 692: Request for Consideration of Additional Findings

Letter 692, titled Request for Consideration of Additional Findings, is an examination letter that comes with a computation report of proposed adjustments to your tax return. It is one of the IRS letters that offer an appeal opportunity, and it comes with a notably shorter response window than the better-known 30-day audit letters. If you have one, check the date on it today.

What the letter is

The name can sound like a mere request, but the substance is a proposal: the examiner has reached conclusions about your return and attached a computation showing the adjusted tax. The IRS says to file a protest if you disagree. Compare the report with your return, your records and any earlier correspondence from the examiner. If you already gave the examiner documents, the first question is whether the examiner missed something you sent.

Do not confuse it with a notice of deficiency. A notice of deficiency, such as CP3219A, opens the 90-day Tax Court window. Letter 692 is earlier in the process. It is also different from Letter 525, the general 30-day letter. The IRS lists different protest windows for the two, so check which one you hold.

Your choices

1. Agree. If the adjustments are right, follow the instructions in the letter to sign and return the agreement, and then arrange payment.
2. Disagree and protest. Write to the office that sent the letter, within the stated time. IRS Publication 5 explains how to prepare a protest.
3. Call first if something is simply missing. If the examiner overlooked a document, a call or fax can resolve it faster than a protest. Do not assume a phone call extends the written deadline, and confirm any extension in writing.
4. Ask for more time. Ask before the date passes, in writing if possible.

What a protest contains

According to Publication 5, you may make a small case request if the total tax and penalties for each tax period in the letter are $25,000 or less, using a brief written statement of the disputed issues or Form 12203. A formal written protest is required if any period exceeds $25,000, and for partnership and S corporation cases regardless of amount. A formal protest includes your name, address and daytime telephone number, a statement that you want to appeal, the disputed issues, tax periods, proposed changes and your reasons, the facts supporting your position, the law or authority you rely on, and a signed statement under penalties of perjury.

What happens if you do not respond

Publication 5 explains that if you do nothing in an income tax examination with a proposed deficiency, the IRS will send you a notice of deficiency allowing a limited time to petition the U.S. Tax Court. If you do not petition in time, the IRS will send a bill.

Interest and penalties

Interest accrues on the proposed additional tax. The report may include penalties. See the accuracy-related penalty and reasonable cause penalty relief. Penalty relief can be argued within the protest.

Common mistakes

• Treating the letter as routine because there was no earlier 30-day letter.
• Sending a short email-style note rather than a proper protest.
• Missing the response date by counting from the day the letter arrived.
• Not checking the computation for arithmetic errors.
• Skipping a representative during a short window, when speed matters most.

When to involve a CPA

Because of the short window, call a CPA immediately. We can review the report, pull supporting records, and prepare a protest or a request for an extension. A signed Form 2848 allows us to contact the examiner. See IRS audit representation and IRS appeals.

How we can help

We can compare the computation report with your return, prepare the protest, and handle the examiner and Appeals contacts. See our IRS representation services or contact us.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.