Do Not Sign An Audit Extension With The IRS

by Bruce Givner on October 5, 2011

During an IRS audit, you may be asked to sign an audit extension to the normally applicable statute of limitations. Normally the IRS has three years from the date you filed your return to complete the IRS audit. If you filed your 2008 personal return on April 15, 2009, the IRS has until April 15, 2012 to complete the IRS audit. When the IRS has less than one year left before the period ends, it will ask you to voluntarily agree to extend the statute for an additional 1 to 2 years, by signing an audit extension. Do not sign the audit extension.

You should politely respond “no” in writing. Point out that you have cooperated at every point in time and will continue to do so, but will not sign an audit extension. The auditor has had plenty of time, and will have plenty more before the statutory period ends, to get any additional information and to reach any needed conclusions.

The auditor may tell you that if you agree to an audit extension, the auditor will be able to clear up some issues and reach a favorable result. Do not take offer. If you give the auditor more time to perform the IRS audit, the file forwarded to the IRS Appeals Division will only get worse for you. You want the file to reflect inadequately considered and documented arguments. This permits you to approach the IRS Appeals Division with new facts and new arguments, which is the only way you have a chance to end up with a more favorable result.

{ 5 comments… read them below or add one }

admin October 7, 2011 at 2:19 pm

Absolutely. If you have any questions, let us know.

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Kerryn October 28, 2011 at 12:12 am

This has made my day. I wish all potisngs were this good.

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admin October 28, 2011 at 10:42 am

Kerryn did you have any questions?

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Wendi Vanboven October 27, 2011 at 2:24 am

Good topic. I have found a whole lot of interesting things here. Keep going.

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Carlinda October 27, 2011 at 6:28 am

If time is money you’ve made me a wealthier woman.

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