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Can the IRS request 2007 tax information when being audited for the 2006 tax year

I don't understand why the auditor needs 2007 information when it clearly states I am being audited for 2006 only. Why are they asking this and can they 'actually ' require me to bring 2007 information when I'm not being audited for that year?

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Attorney answers (3)

Reputation Level 20
They can ask, if they want to compare something from your 2007 return, but you don't have to oblige. As with any audit, be polite and respectful and answer the questions you're asked, but don't volunteer anything you're not asked and don't answer anything not within the stated scope of the audit.

You may wnat to consult a CPA or tax lawyer before going into this to mamimize your chances of it going well.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.
2 people marked this answer as good
Christopher Michael Larson
Christopher Michael Larson, licensed in Washington

Reputation Level 20
You have to be careful here. The tax year 2007 is still a tax year that you can be audited. Even though the auditor has not indicated that 2007 is being audited, they can open this year and 2008 for audit if they feel it is necessary. In fact, if you have an adjustment on your return for 2006 it is almost a given that any filed future year will be opened and examined to see if the same error occurred.

If you have an issue on the 2007 return that you are concerned about it may be time to hire a tax professional.

Disclaimer: This response does not constitute legal, accounting or other professional advice. Only through a personal, confidential consultation with qualified legal counsel can anyone properly evaluate their own unique estate planning challenges and determine what, if any, appropriate legal strategies and tactics should be implemented to meet those challenges.

Circular 230 Disclaimer: “Nothing in this response is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisors regarding the same.”
1 person marked this answer as good
Christopher Michael Larson
Christopher Michael Larson, licensed in Washington

Reputation Level 13
There are limitations on what an auditor can request, but the rules can be complex. However, the very fact that the auditor has asked for another year's information is a red flag for you. You should retain someone to represent you in the audit.
1 person marked this answer as good
Christopher Michael Larson
Christopher Michael Larson, licensed in Washington

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