Discussion:IRS Audit consent for time to assess
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Discussion Forum Index --> Tax Questions --> IRS Audit consent for time to assess
| 8 February 2008 | |
| Have a relatively simple audit involving a small c corp for fiscal year ending in July 2005 with return being due 10/15. Auditor has been in our office a couple of days and appears to be in the process of winding up any remaining issues. Don't know final outcome yet but from discussions and items reviewed, it appears there will be very minor adjustments made to the audit period. Today in the mail however, I received Form 872 for a consent to extend the statue for an additional year to 10/15/09. What would the rationale for asking for this be when we are still so far from the expiration of the statute? What are the ramifications of not signing, i certainly don't want other items to come up as a result of the auditor not being happy we refused to sign. I could understand the request if it was a large involved audit that took longer than expected but that doesn't seem to be the case in this instance. | |
RoyDaleOne (talk|edits) said: | 8 February 2008 |
| I almost never would my client to consent to such a request.
I have seen this requests and never without fail there were issues the auditor never discussed with me. I also advise you to consult an attorney for yourself and advise your client to do the same. | |
Nancyshoemake (talk|edits) said: | 8 February 2008 |
| Doesn't make sense...can you ask the auditor why he would need such a request? | |
RoyDaleOne (talk|edits) said: | 8 February 2008 |
| Don't believe any answer you unless it makes very good sense, because the IRS auditors is not required to tell you the truth, and can lie to you in the preformance of their job. | |
| 8 February 2008 | |
| B S RoyDaleOne. In 35 years with IRS I never received any instruction or even the slightest hint that I should lie to a taxpayer. I made errors, everybody does, but never lied. An employee who did that would lose all credibility. If an employee suspects something that he does not want to communicate with the taxpayer, he will just shut up and say nothing or say he can't discuss it right now. | |
RoyDaleOne (talk|edits) said: | 8 February 2008 |
| Well, CID, can. Because since I speak also from actual experience I know it is the truth. | |
| 8 February 2008 | |
| An IRS employee lying in any official matter is a serious conduct offense, and can result in termination. If real serious in consequences, I wouldn't bet there isn't a Title 18 criminal offense for it.
As of 2/15, there will be 8 months on the statute and a bit early under the IRM to be soliciting 872. If a small case and near to agreed closing, IRS will not be dumping it off for stat notice if you don't sign the 872 soon. They'll follow up a couple more times, and you can discuss disposition of the case, and when, with the R/A. There's nothing to consult an attorney about, for mere matter of an 872. | |
| 8 February 2008 | |
| Good Lord Roy Dale, if you've had CID on your tail, you are a man of experience.
Probably some computer is programed to send it out, some glitch, or someone pushed a button by mistake. | |
| 8 February 2008 | |
| If there were significant unagreed issues, alot of remaining audit work to do, and the statue is a month or two from expiring this would make sense. Is this auditor telling you everything? Something is missing. If you unagreed to proposed changes, some dispute was brewing, and the auditor was afraid they would lose track and the statue would expire, then requesting an 872 would make sense. | |
RoyDaleOne (talk|edits) said: | 8 February 2008 |
| Fortunely, not me but some of my clients. All was resolved without charges, except one where the taxpayers were killed in a car crash during the examination. The estate settled the adjustment including some penalty for fraud. The income was not reported to me, and I could prove in that I asked in writing for all income, thereby avoid any problems for me. I was also the victum of the fraud. | |
| 8 February 2008 | |
| This varies by office, but IRS will likely not let any case wind down to one or two months remaining (except a no-change). It generally means little to IRS to let it go to stat notice and make you petition, or agree to any surprise tax there. They can close it that way at like 90 days remaining. Barred statutes, even if due to understandable errors, are very serious matters in IRS. On an internal report required, a manager may have to document why an employee was not disciplined. | |
| 8 February 2008 | |
| There is really not a lot of time left if you have issues that could go to Appeals. I would ask for the RAR and tell him you will consider an extension of six months. Worst thing that could happen is a 30 day letter. | |
