QUESTION
Do I have to sign an extension to an IRS audit?
Asked on Aug 08th, 2011 on Taxation - California
More details to this question:
I am in the middle of an IRS audit and the auditor is new to auditing and does not have time to finish the audit before their original deadline. He asked me to sign an extension of time for the audit, but I am not sure if I should. If I do not sign the extension,what are the consequences and/or benefits? Thanks.
1 ANSWER
Bruce Givner
You do not have to sign an audit. We never agree to sign extensions. Why? Because that will give the auditor additional time to beef up the file and, if it is obvious that the matter is going to go disagreed at audit, you don't want to give the auditor any more of your (i) facts or to (ii) arguments. You would prefer to keep both for use at the Appeals division. If you have no new facts and no new arguments, then it makes it difficult for the Appeals officer to rule in your favor.
Answered on Aug 08th, 2011 at 5:05 PM