Generally, when you try to hurry an audit, the IRS agent starts proposing adjustments that are adverse to your interests. However, if the IRS agent is overly pessimistic, it may be to your advantage to take any such assessments to the next level. I generally skip the appeal and file a Petition with the Tax Court. In any case, you are better off working with a Tax Attorney on this matter, especially if any significant amounts are under consideration. I hope this helps.
Andrew J. Wyman
I see no reason to rush the audit. First of all, by going past April 15th, the 2008 tax year goes off the table (presuming you filed it timely on or before April 15, 2009). So, even if 2009 was being audited, the auditor will recommend adjustments to all open years if he/she finds a problem in the year of audit.
To answer your question specifically, there is no 45-day limite to an IRS audit. Most audits last longer than 45 days.
Hopefully, your accountant has documented the initial meeting with an internal memorandum, noting what information has been shared. Also, he should be documenting all discussions.
When a report is issued by the auditor, I would encourage you to take the matter to the Office of Appeals and bypass that step as suggested by my colleague. In my opnion, you should attempt to resolve your issues at the lowest level possible.
So, don't sweat the small stuff (the delays). Rather, focus on being positive and upbeat with the auditor. Better yet, let your accountant be positive and upbeat and you stay home! It is always a good idea to have a buffer between you and an inquisitive IRS agent.
Marty Davidoff, [email protected], 732-274-1600. This answer is provided for general information only. You should seek advice from an attorney or tax professional.
Some large entity audits go on for YEARS. There is no limit. I'd like to know where you heard that.
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Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.
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